Last week, our President and Founder Nick Giacoumakis was featured on TD Ameritrade Network’s “Market On Close.”
During the appearance, Nick was asked to weigh in on the Federal Reserve (Fed)’s recent policy reversal, the nature of the 2019 market rally and Q4 retail earnings.
Nick offered insight into the current state of the market, noting the market is overbought in the short term as it struggles to stay above the technical resistance level of 2,800 points for the S&P 500. He addressed the Fed’s “hawkish” tone in 2018, and how the central bank’s forecast of two interest rate hikes in 2019 consequently provoked one of the worst Decembers for markets in recent history. In January, however, Fed Chair Jerome Powell took a “dovish” turn, resulting in a stock rally and strong market to start the new year. Adding that this rally is related to the Fed’s policy reversal, Nick noted he is confident we will have a “market-friendly” Fed moving forward.
As online and brick-and-mortar retailers continue to report their Q4 earnings, Nick also discussed leaders in the retail space, such as Walmart and Target, and how their understanding of e-commerce and cloud-based applications has contributed to their strong financials.
For Nick’s thoughts on how the market might react to the return of a “hawkish” Fed and his position on recession fears, watch the full interview here.