Navigating Markets: February 26th, 2024

The Banker's Crystal Ball

Asset Class Views

High-Quality Fixed Income – Overweight duration

With the market now expecting the Fed Rate cuts to happen later in the calendar, Goldman Sachs predicts that there will be four rate cuts starting in May. The Federal Reserve has a history of waiting too long before cutting rates, and then cutting too much. There is no reason to believe that this time will be any different.

September rate outlook as of Feb 26th, 2024

High Yield Fixed Income – Neutral Corporate, Overweight Municipal

US Equities – Underweight, tilt toward small-cap value

International Developed Equities – Overweight, tilt toward Japan

Emerging Markets – Neutral, neutral China, overweight Korea, Mexico, India

Post Disclosures