Sizemore Capital Management chief investment officer Charles Sizemore joined Market Domination Overtime to analyze current stock market trends.

Sizemore explains that the market rally seen post-election was driven by two factors: the decisive election outcome between Vice President Kamala Harris and President-elect Donald Trump, which had been expected to be closer, and expectations of lower taxes and reduced regulation.

"What we're seeing now is the sort of hangover effect, what's the other side of a Trump presidency," he notes, pointing to uncertainty and potential inflationary pressures.

The Federal Reserve's stance has also influenced market sentiment, with Sizemore noting that the central bank is "trying to get ahead of this." Fed Chair Powell's recent statement that the Fed is in "no hurry" to cut rates has contributed to the rally's decline.

In this environment, Sizemore advises investors to be selective. He expresses skepticism about inflation's retreat, stating, "I think the Fed did a victory lap a little too early." He adds: "If you're looking to invest fresh capital, I would say beware of inflation and look for sectors that are less susceptible to it."

To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.

This post was written by Angel Smith