Consumer sentiment declined in February, registering at 64.7 and falling short of economists’ projection of 67.8. Raymond James chief market strategist Matt Orton joins Catalysts to analyze the report and its implications for market (^DJI, ^IXIC, ^GSPC) dynamics.
Orton advises investors to approach sentiment surveys with “a grain of salt,” highlighting that various factors influence these metrics, particularly amid growing uncertainty surrounding Trump administration policies and inflation trends.
“When you take the bigger picture … the one thing that matters most to the market over the long term is what’s happening with earnings, and I think we’re forgetting because of all of the noise that’s out there just how good earnings season has actually been,” Orton emphasizes.
Given the current environment, he recommends investors consider financials, healthcare, small caps, and mid caps, suggesting it “makes a lot of sense” to invest in these sectors “on pullbacks … based on some short-term indicators.”
He cautions against overweighting the “Magnificent Seven” tech stocks and advocates for investors to be “selective” about which positions best align with their strategies.
Orton stresses that “the name of the game is balance; how are you as an investor going to build better balance for your portfolios in 2025?”
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This post was written by Angel Smith
