Will Rhind, CEO of GraniteShares, joined Cheddar News to discuss Friday's trading session and the overall market as investors deal with some uncertainty despite the Federal Reserve's cautious optimism about inflation cooling.

Closing Bell

Where the Market Could be Heading After Several Volatile Sessions

Well, joining me now to talk about the major indexes, what we should make of the overall stock market is will Ryan c of granite shares. Well, it's great to have you on the show today, certainly see a lot of red on on the screen and that's in the wake of the strong jobs report. But how are you recommending investors perhaps position themselves in this current market and economy that is still a bit uncertain. It's very, very uncertain. But I think that the trends that we've seen since the beginning of the year, I think they could still have some legs here because, you know, this is really to me all about the narrative of inflation coming down. You know, interest rate expectations falling as well. And lastly, the earnings that everybody was, you know, pretty pessimistic about coming into the beginning of this year have held up I think a lot better than expected. So so far, so good. Really. And that's really been reflected in the, in the market that we've seen so far here today. So here's the question. I think people might be a bit confused. They see the stock market down, they expect the Fed will continue to raise rates. Are we still expecting? Is the market still pricing in a rate cut though from the Fed by the end of the year. And you and I know how that would play out. I mean, I'm sure the stock market would rip Exactly. So, absolutely. It's markets pricing in rate cuts or rate cuts potentially in the second half of this year. And even I think in the next potential rate hike that the market believes will be 25 basis points next month. I think there's even some question mark over whether that will happen. Of course, there was nothing specific that Chairman Powell mentioned in his pro his press conference that would suggest that there was anything a surprise I guess in in um in that, but I think the narrative around aggressive rate hikes and even today in the jobs report, Yes, it's a big number, but a lot of that is seasonal and revisions to numbers from last year. Um If you think if you look at the economy net net were flat in terms of full time jobs created last year, a lot of what we're seeing today, those are part time jobs, particularly things like restaurants and bars. So it's not exactly the picture that you might see as if you just looked at the headline number. Mhm. What does this mean for the dollar, will, what does it mean for international investments that are impacted by the dollar and even commodities like gold. I think the dollar is going to resume the trend that it has been on really since about the middle of last year, which is the dollar peak, the dollar will be easing. And that again, ties in with expectations around inflation itself falling. Um And, you know, the Federal reserve getting to their terminal rate, you know, sooner rather than later and indeed, obviously if there are cuts um in the latter half of this year, so it's positive for gold, certainly positive for the commodity market. Um and any buyers, consumers of commodities around the world that are paying for those assets in dollars. Well, it is interesting, I want to run through the numbers on the week will, even though we were down today, um we've seen pretty good gains throughout 2023 even a positive week as well. I see the S and P adding 1.6%. The NASDAQ continuing to outperform as it has this year after. Well, underperforming last year with the NASDAQ 3.3% this week. The dow, I guess dipping just about 2/10 of a percent, but still holding up fairly well in the fifth straight week percentage gains for the NASDAQ the best run that we've seen since november of 2021. Can the momentum continue? I think, I think yes. Um It's a short answer. I do think that we are in a period where we're slowing down, but for the, for the short to medium term again, I don't see the the catalyst, the big catalyst that people looking for um for this to stop, you know, earnings have been good. And I think what what shows even a sign of strength is where companies like Apple, which is, you know, an absolute bellwether of the large cap tech space, even though they actually missed earnings, the stock was still received positively and obviously traded up today. Um, so I think it shows that there's a lot of resilience that these companies, which are such a big part of the market still, you know, we're so badly beaten up last year. And while performances is going to be mixed, the outlooks, mixed people are prepared to come in and buy these stocks for the longer term. Will Ryan C of granite shares, joining us on a mixed day for the market next week as well. But still some strength overall for the NASDAQ will thank you.