) are trading lower ahead of the highly anticipated Consumer Price Index report and the Federal Reserve's rate decision, both scheduled for release on Wednesday. Despite the uncertainty, JPMorgan Private Bank US Equity Strategist Abby Yoder remains bullish on the markets, buoyed by the tech sector's performance.
And when you think about it from a natural standpoint, yeah, their prices are high and their valuations higher than the that the market at the moment.
I was talking to a source about the health care sector yesterday too who mentioned that their ability to kind of navigate the higher for longer environment is differentiating factor as well and the ability to not have as capital intensive sort of expenditures on the balance sheet. But as of right now, we are still of the base case that we are going to see inflation gradually come down, which is going to lead to that cut.
And so if you're thinking about the risk of inflation remains elevated, but the risk of recession feels relatively low.