The stock market is about to make a major shift, this time driven by the shift in monetary policy set on by the Federal Reserve (the Fed). After the most recent meeting to decide the new path of interest rates for the United States, Jerome Powell (the Fed chairman) cut interest rates by the most aggressive pace in 16 years.
That means a few things for the stock market, but investors must understand that not all industries will be affected equally. The ones that deserve a second – or deeper – look are those that depend on consumer and financial trends, sectors like consumer discretionary and real estate. There's even a historical tendency for oil prices to do well on lower interest rates. Hence, the energy sector deserves a spot on this list as well.
Within these spaces, names like Nike Inc. (NYSE: NKE), Chesapeake Energy Co. (NASDAQ: CHK), and even SoFi Technologies Inc. (NASDAQ: SOFI) carry enough reasons to potentially become relative winners in the coming quarters, especially as money and investors begin to shift their preferences to match this new business cycle.
Consumer Stocks Like Nike Poised for a Comeback with Rate Cuts on the Horizon
Nike shares have been volatile recently, particularly after the company reported a less-than-spectacular quarter. Leaning on China slowdowns and weakening U.S. consumer sentiment, bears raided Nike stock after the results came out.
However, some on Wall Street saw far ahead enough to pick up this stock at its lows, such as billionaire hedge fund manager Bill Ackman. More than that, analysts at Sanford C. Bernstein see the stock as ...
