The Fed has a problem, says Veritas Financial's Greg Branch

28 Dec 2023 · over 2 years ago

The top performing areas in the U.S. next year, according to a survey, are financial stocks, high dividend stocks, healthcare stocks, and megacap tech.
The speaker predicts a sharp correction in Q1 '24 similar to Q1 '22, due to the limited duration between the dearth of credit growth and spending.
The Federal Reserve's actions and pivot are seen as potential obstacles to the directionality of the market.
The speaker argues that there is no visible way for the Fed to get from 4% to 2% unemployment, and a rise in inflation in Q1 is more likely than a cut, which will harshen the environment.
The speaker disagrees with the survey's prognostications and suggests looking at utilities, especially if there will be an interest rate cutting environment.