SSO

SA Analyst Roundtable: When will the Fed cut rates?

SA Analyst Roundtable: When will the Fed cut rates? The Federal Reserve Open Market Committee meets this week. Lawrence Fuller, Michael Kramer, Logan Kane and James Kostohryz say the first rate cut will likely come in May 2025. The SA analysts say they don't expect the Fed to cut interest rates in 2024.

The Turn Is Coming

The 10yr minus 3mo Treasury rate is moving higher at a rapid pace. 88% of portfolio managers in the Bank of America Fund Managers Survey last week believed lower rates were ahead. I believe we are seeing a long-awaited turn away from the single focus of high tech as the only option for investors. Positive economic activity is the primary driver of the 10yr Treasury rate and core industrials.

U.S. Economic Growth Plunges In First Quarter 2024

Home Market Outlook Economy Analysis U.S. Economic Growth Plunges In First Quarter 2024. The release of 1st quarter 2024 Gross Domestic Product surprised virtually all forecasters. The first three months of 2024 were characterized by a notable deceleration in US economic growth, marking an almost two-year low.

U.S. Inflation Not As Bad As Feared, But Still Too Hot

U.S. Inflation Not As Bad As Feared, But Still Too Hot in the first quarter. The core PCE deflator came in at 0.3% month-on-month, up from 0.2%. Inflation is still too hot and September remains the earliest opportunity for an interest rate cut.

Weekly Commentary: Opposite Day

The Semiconductor Index surged 9.9%, more than recovering from last week's 9.2% drubbing. The Bank of Japan just can't stop playing with fire. Short squeezes are alive and well. Tesla surged 14.4% this week. The bulls have plenty of fight.

Fed Likely To Hold Rates Steady And Warn Of The Risk Of Delay To Cuts

Inflation and strong activity and jobs numbers have pushed the timing of the first interest rate cut to December. The Federal Reserve will remain wary and signal that if inflation stays high, so will interest rates. ING sees an opportunity for a September rate cut. The Fed likely to hold rates steady and warn of the risk of a delay to cuts.

Equity Factor Report - Q1 2024: Momentum Strategies Shine

Strong investor sentiment and continued economic strength led momentum strategies to outperform in Q1 2024. The MSCI All Country World Index rose by 8.3% in the first quarter. Russell Investments' Factor Portfolios like Global Large Cap Growth, Momentum, and Quality outperformed the MSCi ACWI.

These Three Metrics Tell A Story About The U.S. Economy

Major US indices down for the month, NASDAQ-100 hit with a 7.10% drawdown. Inflation, GDP, and unemployment are the big three metrics used to approximate the trajectory of the U.S. Economy. This month, the Consumer Price Index rose by 3.48% year-over-year. The Federal Funds Rate is expected to stay at current levels.