“Early price discounts can worsen” inflation

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Strategic market strategy Tom Lee Fundstrat Global Adviss has issued caution to investors, saying that the market currently highlights a lot of optimism regarding possible interest rate discounts by the Federal Reserve.

During an interview with Amit Investing, Lee warned that while the economy shows signs of slowdown, persistent inflation is still a great concern.

He said that the central bank should do a difficult budget. “On the one hand, the economy shows signs of slowdown, and it can provide low rates of batch,” he explained to me.

“On the other hand, inflation is still concerned, and early price cuts may exacerbate this.”

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He believes that the market is progressing on itself, saying: “I think the market is highly optimistic.” He assured me that the Federal Reserve should continue to “depend on data, not rush to decisions,” which indicates that important procedures should only follow more concrete evidence of moderate inflation and the softening labor market.

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LEE linked this uncertainty to the behavior of investors on a large scale, noting as a major reason for the frequency of institutions in buying a market decline in April.

He explained that “the uncertainty about the policy of the Federal Reserve was a major factor” for their cautious position, as well as high market fluctuations. During that period, Li’s talks with the institutions revealed that although her feelings were “cautious, but not declining”, she was eventually “awaiting more clarity” before the capital was published strongly.

This data -based cautious offer is a distinctive feature of the Fundstrat approach, which he told me was formed through the 2014 successful company bet on the technology sector. He pointed out that this decision “strengthened the importance of looking beyond traditional standards and focusing on secular trends.” This long -term perspective now informs its current evaluation of macroeconomic conditions and federal reserve policy.