The market would do ‘just fine’ if we see up to two rate cuts this year: Bespoke Investment’s Hickey

Summary

Paul Hickey of Bespoke Investment Group discusses the market impact of increased Venezuelan oil supply, lower crude prices, and the inflation backdrop. He argues falling oil is positive for inflation and the overall equity market, especially with inflation declining but still above target. Hickey also says the market would do just fine with one or two Fed cuts this year and sees consumer stocks as a positive sector after their post-shutdown rebound.

• Venezuela oil supply news pressures crude/oil prices.
• Lower oil seen as positive for inflation and equities.
• Inflation declining above target described as equity sweet spot.
• Fed cuts: fewer cuts preferable, one or two cuts acceptable for market.
• Shutdown hurt consumer stocks; rebound makes sector positive for year ahead.
• Tariff headline risk seen past worst.