The inflation story is progressing roughly as anticipated, with the caveat that the disinflation process had paused in the US earlier this year.
State Street Global Advisors
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Although the environment for risk assets remains largely attractive, early gains from achieving the soft landing are likely in the rearview mirror for investors. It’s going to get tougher from here. The increasing likelihood of a Fed monetary policy mistake, stubborn inflation, disappointing earnings results, toppling over the US fiscal cliff, rising geopolitical tensions, and contentious elections all pose serious risks to the rally.
As the US election draws closer, greater investor attention is warranted on how to align market views with the potential November outcome. In this article, we consider which equity sectors could benefit or lose out depending on the election results.
What’s happening with gold this month? In Talking Gold, we track changes in the gold market by looking at price trends, gold ETF flows, and fundamental drivers for the precious metal.
Exploring growth opportunities in the insurance, homebuilding, and biotech sectors for Q2 2024, highlighting the strong growth outlook, attractive valuations, and potential for innovation and disruption in these industries.
Gold demand in India, the world's second-largest gold consumer, has experienced a broad-based drop due to high prices, with jewelers and consumers waiting for a price correction before adding to their stock or buying more jewelry.
As we look back at the past year, it's clear that the Federal Reserve's response to the regional bank challenges has had a significant impact on the market. The Bank Term Funding Program, which injected over $300 billion in liquidity, supported a 19% surge in the S&P 500 through July.
The dot plot continues to show three rate cuts this year, the same as in December. However, only three cuts are now expected in 2025 (versus four previously) and the long-run neutral rate was nudged up by a tenth to 2.6%.
The recent uptick in US inflation has led to a shift in the market's near-term rate-cut expectations, with many economists now predicting a slower pace of rate hikes.
Gold's recent price resilience has been supported by strength across global fundamental demand sectors, including central bank buying and strong jewelry demand.
The state of the economy has historically played a vital role in influencing the performance of US equities during election years. Our analysis suggests that investors may want to stay invested, particularly if reasonable growth and inflation are expected, as there is still time to strategically position portfolios.
Sometimes you pay higher fees for lower costs, depending on your rebalancing size and frequency, trading costs can accumulate significantly and have a larger impact on the total cost of ownership.