Does Rate Cut Wait-and-See Call for Value Investing?

What’s the deal with the rate cut discussion? With the Fed meeting this week, investors are again trying to figure out when rates might drop. Not only when, but with inflation still stubborn, the number of cuts, too, may now be in question.

Though rates rose at a breakneck speed last year, have markets adapted to this high rate regime? Should rate cuts loom further in the distance, investors may want to revisit value investing via ETFs.

See more: As Nontech Stocks Rise, Consider Active ETF TSPA

Why look to value investing when areas like tech and crypto are standing out? The right value approach can still find opportunities in the tech landscape. Crafting an equities allocation without tech, growth, or value would be difficult. While rate cuts might benefit high-upside, debt-reliant tech companies, a value approach could find those proving their resilience despite high rates.

At the same time, a value approach could find strong firms outside of a super-tech-heavy market. Sectors like healthcare, for example, can diversify portfolios while also picking up strong firms in their own right.