Trading the Fed, plus insights from a 99th-percentile fund manager

Hello and welcome to Insider Investing. I'm Joe Ciolli, and I'm here to guide you through the current market and investing landscape. Here's what's on the docket:

• The Federal Reserve left interest rates steady this past week while setting the stage for two hikes by year-end 2023. Insider spoke with Wall Street and crypto investors to gauge how to position for the hawkish shift.
• We chatted with Hennessy Funds' Dave Ellison, who's in the 99th percentile compared to peers over the past year. He told us why he expects financials to stay on a tear – and shared 5 specific stocks to buy now for upside.
• The formerly red-hot SPAC market has slowed considerably in recent weeks, and short sellers have been ramping up bets. Exclusive data shows the 20 most-shorted blank-check companies right now.

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Have thoughts on the newsletter? Just want to talk markets? Feel free to drop me a line at jciolli@insider.com or on Twitter @JoeCiolli.

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Fed-driven portfolio adjustments

The Federal Reserve left interest rates steady this past week while setting the stage for two hikes by year-end 2023. Traders, who took a wait-and-see approach before the Fed meeting, quickly sprung into action. Insider spoke with Wall Street and crypto investors to gauge how to position for the hawkish shift.

Read the full story here:

The Fed has left rates steady while signaling 2 potential hikes by the end of 2023. Here is what to do with your stocks, bonds, and digital assets, according to top Wall Street and crypto investors.

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99th-percentile insights and stock picks

Financial-sector stocks have outperformed the rest of the market over the last several months. Hennessy Funds' Dave Ellison – who's in the 99th percentile compared to peers over the past year – told Insider he expects their strong performance to continue. He shared 5 financial stocks to buy now in order to take advantage of the remaining upside.

Read the full stories here:

Dave Ellison has beaten 99% of his peers over the last year managing the Hennessy Small-Cap Financial Fund. He breaks down why he thinks financial stocks still have room to run – and shares 5 names to bet on

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SPAC shorts

Short interest in SPACs stood at $3.2 billion in mid-June, up from $2.7 billion. The uptick in SPAC shorts comes as the market works to recover from a weeks-long slowdown, and one ETF manager expects recently "de-SPACed" companies to see short activity surge soon. Exclusive data shows the 20 most-shorted blank-check companies right now.

Read the full stories here:

Bets against SPACs are revving back up as the market attempts a comeback. Here are the 20 most-shorted blank-check companies now.

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YOU'RE INVITED: A Millennial Guide to Home Ownership

Join us and learn how to navigate the complicated process of buying a home in today's hot market on Tuesday, June 22 at 12 p.m. ET – during a free, hour-long virtual event presented by Fidelity.

Register here.

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Stock pick central

Seeking experts who are willing to name names? Look no further:

• Goldman Sachs says buy these 37 stocks that will offer strong returns with minimal risk through year-end as growth names regain leadership
• Jefferies shares its 24 stock picks to buy for the best performance during the rest of 2021, taken from a list that's trouncing the market so far this year
• Bank of America flags 26 stocks to buy that are also hugely popular among giant Wall Street investors
• Credit Suisse says to buy these 18 tech stocks now while they're cheap and ahead of their years of powerful profit growth
• 2 experts from leading cybersecurity ETFs lay out 5 themes that are central in fighting digital warfare – including 9 stocks that are combating the surge in cyber attacks
• Goldman Sachs says buy these 21 energy stocks with unique catalysts that will propel them higher through year-end as the sector outshines the broader market