Where Top Stock Fund Managers Are Looking Next After the Fed Rate Cut

Plus: Two top semiconductor stock picks and what the Fed’s rate cut means for bonds. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=57883&elqTrackId=c4276dd3cedf4dd78c4971d9e6a88d45&elq=04d2d8e319844c5aa8270d89d3259457&elqaid=57883&elqat=1&elqCampaignId=29511&elqak=8AF57BA3D75A4BCB9EDAD8E5F48CA366F3E0989F320A02D608368220A3400BB30A65) [Smart Investor] Smart Investor [Tom Lauricella, chief markets editor]( Connect with Tom on [LinkedIn]( [Tom Lauricella] In this week's newsletter: - [Where Top Stock Fund Managers Are Looking Next After the Fed Rate Cut]( - [Fed Rate Cut Shows the Main Battle Against Inflation Has Been Won]( - [What the Fed’s Rate Cut Means for Bond Investors]( - [What’s Next for the Markets and Economy After the Fed Rate Cut?]( - [What to Know About S&P’s September Shakeup]( - [The Most Attractive Investment Opportunities in Oil & Gas]( - [2 Semiconductor Stocks to Buy]( This week’s Federal Reserve meeting certainly lived up to the hype as officials delivered an [aggressive half-point rate cut](. While not completely a surprise, it was certainly notable that the Fed decided to kick off its easing cycle with guns blazing. Even though a rate cut has been expected for quite some time, it nevertheless marks a change in market dynamics. Our coverage this week looks at the new landscape from a few different angles. When it comes to the economy, the Fed’s rate cut reflected a change in concerns at the Fed. As Morningstar Senior US Economist Preston Caldwell explains, the focus has shifted to supporting economic growth and away from battling inflation. Find out why Caldwell says the Fed is now on a “mopping up” mission [when it comes to inflation](. And check out our piece on what history shows might be next for the markets and economy [with the Fed in easing mode](. The aggressive rate cut has direct implications for the bond market. Sarah Hansen spoke to bond portfolio managers at some of the biggest fund shops to get their take on how bond investors should approach [this new landscape](. When it comes to stocks, the Fed rate cut sent the market to a fresh record-high. As Gabe Alpert writes, stock fund managers see more where that came from ahead; however, the stocks that led the rally for the past two years aren’t [where they see the best opportunities](. Elsewhere this past week, Morningstar analyst Zachary Evens took a look under the hood at the S&P 500 rebalancing that took place at the market close Friday. This kind of thing is often just inside baseball. But with the stock market’s gains heavily concentrated in a few massive stocks, this time around, [it’s worth paying attention to](. To close out this week’s newsletter, we’ve got a deep dive into the semiconductor industry, with Morningstar’s [top picks among semiconductor manufacturing stocks](. And in the world of commodities, you can find Morningstar’s outlook on oil prices and our [two top picks among oil and gas stocks](. That’s it for this week! As always, check out our [Markets page]( for our latest coverage, live stock market updates, and [our weekly calendar]( of key upcoming data and events. [Where Top Stock Fund Managers Are Looking Next After the Fed Rate Cut]( [Where Top Stock Fund Managers Are Looking Next After the Fed Rate Cut]( Hint: It’s not among the stocks that have led the rally of the past two years. Gabe Alpert [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Markets and the Economy [Fed Rate Cut Shows the Main Battle Against Inflation Has Been Won]( [Fed Rate Cut Shows the Main Battle Against Inflation Has Been Won]( With more rate cuts on the way, the economy should avoid recession. Preston Caldwell [What the Fed’s Rate Cut Means for Bond Investors]( [What the Fed’s Rate Cut Means for Bond Investors]( It’s time to think longer term. Sarah Hansen [What’s Next for the Markets and Economy After the Fed Rate Cut?]( [What’s Next for the Markets and Economy After the Fed Rate Cut?]( For investors with a time horizon beyond a few years, even Fed decisions can amount to just noise. Danny Noonan [What to Know About S&P’s September Shakeup]( [What to Know About S&P’s September Shakeup]( How XLK, Apple, Microsoft, and Nvidia may be affected. Zachary Evens [Is the Fed’s Plan to Avoid a Recession Working?]( [Is the Fed’s Plan to Avoid a Recession Working?]( Plus, why you may want to hold off refinancing your mortgage or buying a new house. Preston Caldwell, Ivanna Hampton [Top Oil & Gas Stock Picks]( [Top Oil & Gas Stock Picks]( OPEC faces an oversupplied oil market as it considers adding back more supply. Stephen Ellis [Raising Fair Value for Meta Stock on AI and Ad Leadership]( [Raising Fair Value for Meta Stock on AI and Ad Leadership]( Facebook and Instagram owner is the clear leader in social media, with prowess in digital advertising. Malik Ahmed Khan [2 Semiconductor Stocks to Buy]( [2 Semiconductor Stocks to Buy]( Good buys still exist after a year of artificial intelligence fever. Frank Lee [What’s Happening in the Markets This Week]( [What’s Happening in the Markets This Week]( PCE Inflation, and Costco to release earnings. Frank Lee [Why Bother With Small-Cap ETFs?]( [Why Bother With Small-Cap ETFs?]( How the investment case has changed. Zachary Evens [3 Great ETFs for Jittery Markets]( [3 Great ETFs for Jittery Markets]( These ETFs are designed with lower volatility in mind. Bryan Armour [New 4-Star Stocks]( [New 4-Star Stocks]( ExxonMobil and Wells Fargo are among the stocks that fell into undervalued territory. Bella Albrecht [Is Zscaler Stock a Buy After Earnings?]( [Is Zscaler Stock a Buy After Earnings?]( Well positioned despite a highly competitive market. Malik Ahmed Khan [3 Stock Funds With Potential Liquidity Challenges]( [3 Stock Funds With Potential Liquidity Challenges]( These equity funds could get squeezed if things go wrong. Jack Shannon [Best Stocks and Funds to Invest in Nuclear Energy]( [Best Stocks and Funds to Invest in Nuclear Energy]( Nuclear power is undergoing a renaissance but won’t be a big theme for most US utilities. Valerio Baselli Chart of the Week [No, Casino Gambling Isn’t More Lucrative Than Day Trading]( [No, Casino Gambling Isn’t More Lucrative Than Day Trading]( Why a viral investing chart is misleading. John Rekenthaler [Read More]( Share: [facebook]( [twitter]( [linkedin]( Popular This Week [10 Best Value Stocks to Buy for the Long Term]( The stocks of these high-quality companies look cheap today. Margaret Giles [The Number One Way Americans are Becoming Millionaires]( The best investing may not always be thrilling. Danny Noonan [The Best Tech Stocks to Buy]( 10 undervalued stocks offer attractive prices in a predominantly overvalued sector. Sbidag Demerjian, Margaret Giles [Christine Benz: How to Retire]( Morningstar’s director of personal finance discusses her new book, the bucket approach, and why retirement shouldn’t be a math problem. Dan Lefkovitz, Amy Arnott [The Best REITs to Buy]( These six undervalued real estate stocks pay dividends and trade at attractive prices. Sbidag Demerjian, Margaret Giles [Recent Company Earnings]( Discover actionable opportunities today with our earnings coverage and analyst insights. What are the secrets to a healthy, happy, and wealthy retirement? Find out with Christine Benz's new book, "How to Retire". 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