3Q24 Commentary: As the Fed Provides a Clearer Fiscal Policy Roadmap, Our Models Signal for Less Risk

Q3 2024 saw a broad rally driven by small-cap, value stocks, and international markets as central banks cut rates. Looking ahead, caution is shifting focus to selective opportunities in sectors like financials, healthcare, and industrials.

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Fireside Charts
The Draw of Higher Interest Rates, China’s Lockdowns and Effects on Supply Chain, Pandemic Era Fiscal Policy’s Impact on GDP

The Draw of Higher Interest Rates, China’s Lockdowns and Effects on Supply Chain, Pandemic Era Fiscal Policy’s Impact on GDP

Investor sentiment is reaching dire levels. The U.S. 10-year Treasury Inflation-Protected Securities (TIPS) yield is in positive territory for the first time since 2019, as higher interest rates bolster the...

Fireside Charts
Yield Curve Inversion, Market’s Expectations of Federal Funds Rate, and Inflation’s Effect on Discretionary Spending

Yield Curve Inversion, Market’s Expectations of Federal Funds Rate, and Inflation’s Effect on Discretionary Spending

The long end of the yield curve just inverted for the first time since 2006. The flattening yield curve reflects the market’s expectations of future Federal Reserve tightening and its impact on the economy...