Nike stock was a loser last week. Nike is under pressure with fiscal year 2025 to be down mid-single digit in revenue.
However, this is exactly what the US needs right now – weaker consumer, cooler economy.
Lower demand tempers inflation and it’s easier for Fed to see the data it wants.
When Fed gets what it needs and cuts the interest rate, others thing could look for bottoms or better terms – whether it’s commercial real estate or refinancing some low cost CBs.
If you want to get there faster, you better hope for the opposite.
When more people see only one cut or no cut, overall economy will cool a bit. Companies and consumers would tighten their belts, which will be helpful to the Fed.
When the market is pricing in “higher for longer”, multiples come down & stocks drop. Here, the reverse wealth effect will drive down inflation.
Talk bad stuff, so you can get good result in the end.