Ed Siddell, CEO and chief investment officer with EGSI Financial, joined Cheddar News to discuss Thursday's positive trading session in what Siddell called "a year of momentum" as investors continue to digest a heavy amount of news that includes monetary policy, inflation concerns, banking fears and some positive economic data.

<div class="block">Ed Siddell, CEO and chief investment officer with EGSI Financial, joined Cheddar News to discuss Thursday&#39;s positive trading session in what Siddell called &quot;a year of momentum&quot; as investors continue to digest a heavy amount of news that includes monetary policy, inflation concerns, banking fears and some positive economic data.</div>

Closing Bell

Analyst Lays Out Trading Trends Amid Monetary Policy Moves, Inflation and Economic Data

Joining me now is CEO and Chief Investment Officer at SI Financial. And it's good to have you on the show in what's a very positive day for stocks? What do our viewers need to know? Well, thanks for having me back. And, you know, it really is, uh you know, after yesterday, after uh uh Powell's speech, you know, I, I think this whole year has been really surprising. Um you know, this has really been a year of, of momentum and it, and it really hasn't been about the fundamentals and I think it's, it's the momentum and the retail investor that's really been been pushing through this. And um what's been exciting about today is that the, the, the market, the rally, it's, it's really broadened uh across more stocks instead of just the uh the, the tech sector. And in some of those sectors that have really been hit hard, you know, um from energy and manufacturing materials, utilities, you know, they, they've really started to, to come back and, and so I think these may be good signs. I think investors are hoping that the good signs are here despite the fed indicating yesterday that two more rate rises might be on the horizon before year end. And do you expect those to play out? Um, you know, I, I do, I, I think we're probably going to get at least one more raise. Um, you know, I, I don't think, uh, if we get more than one raise it's not going to be back to back, it could be, you know, uh, one in September and then one, you know, maybe in, in December. Um, because I think the Feds really want to make sure that they're not going to break the economy. Um, you know, and, and even though there's been a really good rally this year and the, the stocks have really broadened across different sectors. You know, there's still a lot of concern, you know, for me, I'm being very cautiously optimistic, you know, we've got a lot of consumer debt out there. It's at historical highs. We have credit card debt. Um, people haven't been paying on their student loans for, for years. Uh, and yet they've bought new homes and, and cars and so I, I think, um, as commercial loans start coming due in the next 6 to 12 months, um, you know, we may have some more hiccups or bumps in the road and that's really gonna determine, you know, if this, uh, if this rally continues to play out and the bull market is strong and, and the momentum pushes through or if there's a pullback there is the famous adage for market watchers that as goes January. So goes the year, I think in January we might have thought something different for those of us who have followed the market for a long time. But do you think that might hold true this year? You know, I, I really think it could, um, you know, if it keeps pushing through the way that it is, uh, you know, in, in June finishes up strong, going into July. Um, you know, I, I really believe that we could see another 5% increase in the S and P before year end. Um, and, you know, and I was one of those naysayers, I, I really was, you know, I, at the beginning of the year, like I said, if you had told me the market was gonna be up over 13 14% by, by June, I would have told you you were crazy, but again, the momentum retail investors, they've just kind of been pushing through and not really adhering to the fundamentals. So, you know, I think that the market really could push through and we could finish off on a positive note, which would be great for everyone. As a chief investment officer, ed, what are sectors, even stocks that look attractive to you and maybe some that you'd avoid. Yeah. Um, the ones that I really like are those that have been hit hard, um, manufacturing materials, utilities, even energy. Um, you know, I was a big proponent of energy early on in the year and, and when it really started getting hit hard, we pulled back but now we're, we're kind of back in, I, I really like those, um, you know, technology. Uh, you, you know, it's, it's oversold. Um, I think if you're in, it's great. Um, you know, and, and maybe look at some of those A I stocks, um, that aren't like NVIDIA that, that are already really high. Um You know, but again, technology that's, that's gonna be a good sector. Some of the things that I would really stay away from right now, at least for the long term would be uh financials. I'm, I'm still a little apprehensive because of the amount of commercial loans that are still coming due. Um And, and again, they could get hit pretty hard. Interesting, let's talk inflation because for the consumer watching, the biggest question out there, which also impacts the market is realistically, can inflation get back down to the fed's 2% target and actually stay there. What's your take? Uh Not if the government keeps spending the way that they do. Um And, and that means that the Feds are going to have to add more to their balance sheet. Um You know, I, I was reading a report saying that, you know, it's all about corporate profits that's gonna push up inflation. What's really the government spending? You know, we, we have to get that under control. We've added so much to the national debt, which has really been, you know, fueling the, the inflation, uh, you know, for the last couple years. So once we get that under control, I, I think everything else will fall into place, but I just don't see that happening and, and Powell even addressed that in his remarks yesterday. All right, Ed, CEO and Chief Investment Officer at E G SI Financial Ed. Thank you.