Inflation is once again trending downward, but there are still risks with the ongoing impact of the Fed’s “higher-for-longer” rate policy on the economy and corporate earnings. The jobs market has remained strong which has supported the U.S. consumer; however, recent softer job data indicates that a shift may be underway. Although markets are now expecting the first rate cut in September, inflation has remained sticky and has yet to break below 3%. The Fed is still waiting on additional inflation data to confirm the downward trend before it cuts rates. Rate cut expectations and solid earnings have fueled the stock market to new highs in July. In this video and accompanying slides, we discuss our outlook and positioning on how each of these factors may impact the U.S. economy and the markets. We will also discuss current market themes including the impact of the “Magnificent 7” stocks on the broader market, our allocation between U.S. and international stocks, and how election cycles have impacted markets historically.
Watch here: https://youtu.be/2j9QoSYTtM8?si=kLkLYRIo5xps8YSl
