Letter From The Editor, John Norris
If you only had one word to best explain the 3rd quarter of 2024, it would be finally.
For close to two years, investors have been anticipating the start of the next Fed easing cycle. Put in layman’s terms, everyone has been waiting for the Federal Reserve to cut interest rates. Although the official economic data has arguably suggested the economy doesn’t need the Fed to do so, there has been a lot of speculation that the official data has been, shall we say, surprisingly upbeat.
In September, the Fed finally delivered. On September 18, it cut the overnight target lending rate by 50 basis points (0.50%). In some ways, this move felt sort of anticlimactic. After all, the sun still came up in the East the next morning.
But should it have? If so, just how aggressive should it be in cutting the overnight rate moving forward?
Scroll below for individual article highlights
Year-End Predictions
Political gridlock, a flattening yield curve, shifting behavioral patterns, stock market rallies (and possible sell-offs), a housing conundrum and other predictions from our Investment Committee to close out 2024.
Key Takeaways from 3rd Quarter
The Fed has finally cut interest rates. New money continues to pour into the stock market. Prices keep rising. American politics are more polarized than ever. All of this and more in our 3rd quarter key takeaways.
3rd Quarter Equity Review, 2024
Despite a multitude of recent natural disasters and ongoing uncertainty, the markets have shown impressive resilience. With the economy and consumer activity holding strong and stocks reasonably priced, the outlook remains full of potential opportunities.
3rd Quarter Asset Allocation, 2024
The pendulum is swinging back and broadening in a healthy way— not just under-performing large-cap tech but by stronger performance across the board. Increased market volatility, driven by Fed rate cuts and geopolitical factors, has made diversification crucial. We continue to favor equities over bonds and cash, with a focus on value stocks and smaller companies benefiting from a steeper yield curve and rising earnings.
Special Report: Social Media
Social media has transformed both retail investing and political engagement, driving trends like meme stocks and fueling misinformation. The future will require a balance between free speech and protecting market and political integrity.
Special Report: The Chinese Economy: Look Before You Leap
China’s economic rise has been remarkable, but it now faces significant challenges in housing, debt management and central planning. How will China navigate these headwinds, and what does it mean for the global economy?
