Investors need 'inflation-sensitive assets': Strategist
Initial jobless claims decreased by 6,000 compared to the previous week, with 233,000 individuals filing for unemployment benefits in the week ending on June 22. Meanwhile, new pending home sales data revealed a 2.1% month-over-month decline, rather than the 0.5% increase economists expected. US Bank Wealth Management senior investment strategist Tom Hainlin joins Market Domination to give insight into recent economic data and its implications for the labor market and the economy as a whole. On the stock market, Hailin points out, "If we look at just the pillars of growth, inflation and interest rates, even though the data was a little soft, it's still a positive economy. Inflation will get a new reading tomorrow on the PCE...We have positive but decelerating inflation, and Treasury yields have stabilized around four and a quarter here. We think that's a pretty good setup for stocks to price higher at least at the broad index level." Hainlin recommends that investors tilt more toward positive growth and inflation-sensitive assets: "So for the typical diversified investor, they've got some allocations to stocks and bonds and things we call real assets. We would have some of that money out of core bonds and into those US large-cap equities," he adds. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Nicholas Jacobino
