The latest Federal Reserve meeting minutes were worrisome to investors seeking some subtle hints that interest rates would rise no higher. Arguably, some indication of a pause in rate hikes could have put an end to the market's nasty start to August. In any case, I don't think you can blame the Fed for staying focused on slaying the dragon that is inflation - because that dragon may be down, but it's certainly not dead. Further surges in the 10-Year Treasury note ($TNX) could apply more selling pressure to this market. And like it or not, discussion of a possible recession may be back on the table.
In any case, now seems like a good time to lighten up on high-tech momentum stocks in favor of some fast-food plays. In particular, McDonald's (MCD) is an intriguing way to ride out this market pullback. Though it's an easy-to-understand company in a reasonably predictable industry, I don't think it's fair to dismiss the firm as boring or incapable of innovation. If anything, McDonald's is capable of delivering stealth innovation, or innovation that investors may take for granted, given the traditionally low-tech nature of the quick-serve restaurant industry.
