XLY Consumer Discretionary Sector SPDR July Outlook—Discretionary stocks may have finally put in a durable low in June as investors shift views on Fed. policy expectations from hawkish to dovish
XLY has shown signs of bottoming as inflation has continued to dissipate. Investors are starting to gain conviction that the Fed. will be more accommodative to equities in its forward interest rate policy prescriptions as a flagging consumer and slowing industrial production have the potential to supplant inflation as a primary concern.