Bloomberg Surveillance: PCE Reading (Podcast)

Key Decisions for Investors

• Add duration: buy IEF or TLT on a 1-3 day post-data dip; target 2-4% upside over 4-6 weeks if the print reinforces a Fed-cut path, with a tight stop if real yields back up more than 15-20 bps.
• Long IWM / short XLU as a 1-2 month reflation-lite trade if rates fall without recessionary damage; small caps should leverage lower funding costs faster than regulated defensives.
• Own quality growth on weakness via QQQ call spreads 2-3 months out; favorable if yields drift lower, but define risk because the move reverses quickly if the market re-prices sticky core inflation.
• Pair long domestic/vertically integrated supply-chain winners against import-dependent retailers/industrial distributors over the next 1-2 quarters; tariffs hit the latter with a lag and create a clearer margin wedge.