The current sweet spot in equities? It may be "quality." Fed Chair Jerome Powell's message that rate hikes may come faster and stay higher for longer is leaving equity investors scrambling for investments that could weather the storm. For investors who don't want to abandon stocks altogether and flee to the safety of two-year Treasury notes, one style attracting renewed interest is an old one: quality.
With the S & P up about 4% in 2023, most of these names have outperformed so far this year: NVIDIA + 59% Meta + 53% Apple + 17% Visa + 8% Costco + 6% Microsoft + 6% Mastercard + 4% Home Depot - 9% By industry, technology and consumer discretionary, and communication services — sectors where "quality" names often appear — have also outperformed in 2023. S & P Sector Leaders in 2023 Technology up 11.6% Communication Services up 11.9% Consumer Discretionary up 10.
BobPisani 6 month Ts are 5.25.