Potential Rate cuts & investment strategy from Dr. V K Vijayakumar, Chief Investment Strategist, Geojit Financial Services

The higher-than-expected consumer price inflation in the US has pushed back the timeline for rate cuts. But it can happen in H1 of CY25 itself because the Fed takes the PCE (personal consumption expenditure) more seriously in determining rate cuts and PCE is unlikely to indicate high inflation. The spike in CPI has been caused by a disproportionate rise in home rentals. The market is likely to remain resilient amidst volatility. Valuations are excessive in the broader market. Safe investment strategy is to focus on high quality large caps.