Equities
A One-Way Market Foils Stock Pickers as Fed Trounces Everything
- Repricing of expectations for rates overshadows other factors
- Growth, value stocks moving in lockstep by most since 2005
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Stock pickers who successfully navigated the 2022 bear market are having a harder time making it through the 2023 faltering recovery.
First, an unexpected risk-on rally in January caught some defensively positioned mutual funds off-guard. Then, stocks started falling pretty much in unison on renewed anxiety about how far the Federal Reserve will go with its rate hikes, ruining efforts to find some way to come out ahead. And as long this one-way wave lasts, equities traders will find few opportunities to make money.