[ad_1]
(This is a wrap-up of the key money moving discussions on CNBC’s “Worldwide Exchange” exclusive for PRO subscribers. Worldwide Exchange airs at 5 a.m. ET each day.) Investors are looking for opportunities in health care and the bond market following the Federal Reserve cutting its benchmark rate. ‘Worldwide Exchange’ pick: UnitedHealth (UNH) Barbara Doran of BD8 Capital sees opportunity in UnitedHealth , which has fallen more than 30% year to date. “This was a premium company that was really steady state had best in class operations management, but the last two years, post Covid, a big problem with utilization rates much higher, really underestimating how much costs would be up in their risk management,” said Doran. “But what I’ve seen in great companies like this, they do find their way back. … I think there’s real potential on the upside, but not without risk. But I think they’re really managing forward in a very positive way.” UNH YTD mountain UNH year to date Opportunity in bonds Gina Sanchez of Chantico Global and Nancy Davis of Quadratic Capital see big opportunities in bonds after the Federal Reserve made its first rate cut in nearly a year. “Interest rate volatility fell really hard yesterday after he Fed’s rate decision. So I think interest rate volatility, it’s not something that most people think about,” said Davis.” To me that’s a really nice diversifier, where it’s not necessarily within equities it’s in the fixed income market.” Sanchez noted: “The segment of the market that looks most attractive right now, that looks like it could continue to carry water is most investors bond portfolios. … I think that equities right now look neutral at best and possible less attractive.” Former Cleveland Fed President Loretta Mester on the Fed Decision Loretta Mester isn’t concerned about by the Fed’s summary of economic projections, even as one FOMC member is calling for much more dovish central bank policy. “I think what would have been more problematic [if] we didn’t get dispersion of views, given the economic environment in which the Fed is operating. And I think [Powell] pointed out there are two-sided risks here. You have to weigh the risk of higher inflation, which we think we’re going to see because of the tariffs, versus a weakening, softening job market. And I think that’s what the Fed sort of talked about around the table, is how to balance those risks. And different policymakers came up with different answers about what the best policy would be.” said Mester. Mester also responded to comments from from Jeffrey Gundlach of Doubleline Capital that the Fed needs to shift its focus from job creation to the unemployment rate. “It totally agree,” said Mester. “What the Fed is trying to do is manage that downside risk to labor at the same time, leaving policy somewhat restrictive because they do have this higher inflation. And the higher inflation is not necessarily only because of tariffs.” ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )
[ad_2]
Source link
