And while Fed Chair Jerome Powell said that the central bank's staff does not predict a recession, he did say that the economy will need to further slow in order to defeat inflation.
"We have seen the impact, but not to the extent that the market expected or the Fed expected.
He pointed to the iShares MSCI USA Quality Factor ETF (QUAL) and the JPMorgan U.S. Quality Factor ETF (JQUA) as funds that are capturing some of the market rally without adding outsized risk.
Those are growth-oriented defensive equities with strong balance sheets, high revenue growth, which is what investors seek during slow revenue or slow economic environments," Smith said.
QUAL YTD mountain This quality factor ETF has risen more than 20% this year.
Persons:
Jerome Powell, Powell, Venkat Balakrishnan, Savita Subramanian, Andrew Smith, Smith, Charles Champagne
Organizations:
Federal, " Bank of America, Delos Capital Advisors, CNBC, JPMorgan U.S, Quality, Visa, Mastercard, of America, Investors, Bank of America
Locations:
U.S, Dallas