MISSION ACCOMPLISHED? Entering 2024, the Federal Reserve appears set to proclaim its inflationary mission accomplished – and in soft-landing fashion. Investors welcomed the Fed’s evolving message on monetary policy, with global equity markets up 11% (12% in the U.S.) in the quarter. The strong finish to an already strong year was largely driven by the...

SUPPORTIVE FUNDAMENTALS Global markets were strong over the past month as “soft landing” supportive fundamentals and market conditions unfolded. Increasing confidence in moderating inflation drove significant changes in expectations for the Fed (pricing in earlier rate cuts), and a steep drop in long-term rates. Lower rates combined with still reasonably durable labor market and consumer...

DON’T COUNT ON CUTS Global markets remain volatile, with equities starting the month lower before declining long rates toward the end of the month brought investors back to stocks. Rates fell as investors read the Federal Reserve communication as relatively dovish, combined with some softer macroeconomic readings including a somewhat weaker U.S. employment report for...

ALL ABOUT RATES Global markets were weak over the past month, with both stocks and bonds posting negative returns. The catalyst was principally the material rise in interest rates over the course of the month – driving losses in fixed income and pressuring equity valuations. Until recently, the increase in long-term rates off of the...

IT’S A MARATHON… As most of the world’s population exits summer, marathon season resumes – with two of the six majors* (Berlin and Chicago) bookending the start and end of the third quarter, and New York coming up in November. The “it’s a marathon, not a sprint” analogy is (too) often used to assess investment...