As we gear up for July’s FOMC meeting, the market is abuzz with anticipation of how it will impact the stock market. One potential outcome is a shift in investor behavior, with a move away from large growth stocks towards small-cap stocks.
The Federal Open Market Committee (FOMC) meetings are closely watched by investors as they provide insight into the Federal Reserve’s monetary policy decisions. These decisions can have a significant impact on market sentiment and the direction of stock prices.
If the FOMC meeting in July signals a shift towards a more hawkish monetary policy, investors may be inclined to move away from large growth stocks, which have been popular in recent years, and instead focus on small-cap stocks. Small-cap stocks are often seen as more sensitive to changes in monetary policy and economic conditions, making them an attractive option in a changing market environment.
So, as we approach July’s FOMC meeting, keep a close eye on how investors react. Will we see a rotation out of large growth stocks and into small caps? Only time will tell, but one thing is for sure – the market is in for an interesting ride.