Denise Chisholm’s sector and factor perspectives – June 6, 2023

Joining us on the podcast today is Denise Chisholm, Director of Quantitative Market Strategy. Denise speaks about a narrowing of market breadth in the aftermath of the Fed’s efforts to replenish cash reserves, and how she sees this impacting short-term market performance. She explains with only a few stocks leading in the market, the underlying trend becomes far less robust which increases vulnerability. There are several ways, she says, that gaps in an upwardly advancing market led by a handful of stocks can be closed. Either markets can correct back to a downward trend in breadth, or breadth could advance, which has historically been the case. And turning to the job market, Denise says things are slowing but not stopping, with contractionary household employment trends suggesting that the Fed may impose additional rate hikes.

Recorded on June 6, 2023.

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