According to a Business Insider report, there is a chance of a 'no landing' scenario, where things would be bullish for US stocks. Under these circumstances, high-dividend yielding sectors will be benefited since short-term rates will collapse first. This scenario also includes a major run for hot economic data and growth which will end up in boosting the US markets but will also witness a steep rate cut cycle from the US Federal Reserve, says Business Insider.
Institutions like the Bank of America and UBS could be one of the primary once affected in this no landing outcome but it must also be noted that under these estimated circumstances, the growth of the US markets remains stronger than ever, with a deflation of inflation fears along with an elevation of interest rates.
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The recent GDP has been cited as overwhelmingly positive, according to the Bank of America and the current weeks retail data clearly states that consumers pending has stayed stronger in recent times, with the sudden hike of real core control retail sales. This has proven to be helpful in terms of questions surrounding the downside risks and upside risks. The no landing scenario would be helpful under a particular circumstance that inflation fears do not begin to affect the markets again.
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