Previously in the Market
April 2024: Some Spring in the Cyclical Step
"If you don't like change, you are going to like irrelevance even less."
- General Eric Shinseki
Economically sensitive pockets of the market are leading. The promise of interest rate cuts amid a potential synchronized growth upswing has put some pep in the step of cyclicals. Spring has arrived, and with it, fresh questions regarding these shifting allocations. Should investors embrace the market’s positioning optimism?
May 2024: Rates Repricing, Earnings Surprising
"If one does not know to which port one is sailing, no wind is favorable."
- Lucius Annaeus Seneca
April volatility was catalyzed by the hawkish repricing of Fed rate-cut odds. Fortunately, the headwinds associated with higher interest rates have been more than offset by another quarter of robust corporate earnings that have come in much better than expected. The tricky backdrop continues; should investors favor one input more than the other?
June 2024: The Slow Road to Normal: Rate Cuts Dragging, Technology Expanding
"What is right to be done cannot be done too soon."
- Jane Austen
Despite another pushout in rate cut expectations, markets recovered from their April swoon with a May bounce that has put many indices near their all-time highs. Rotational effects are in full swing as the summer approaches, but technology leadership was reasserted.