Fed Cuts Won't Be Enough for Stocks

BNY

Where can value be found in the S&P 500? Our flows show that investors aren’t chasing recession risks but recovering from the fear of such risks. The role of Q1 earnings is important in this process. In the S&P 500, eight of the 11 sectors are reporting year-over-year growth, led by the Health Care, Communication Services, Information Technology and Utilities sectors.

Equity flows for APAC have clearly recovered but given the comments and actions from central banks in the region this week, tolerance for full-on FX and equity exposure is limited. After all, these economies remain export-driven, and the situation with the U.S. remains unresolved.