August 2024 Market Update

In this August market update, our Chief Investment Officer, Brian Andrew, CFA®, delves into the latest market trends and their potential impact on your investments in the coming months.

Key Takeaways:

1. Volatility Brings Opportunity
   As expected, market volatility increased in August due to lower trading volumes and a confluence of economic events. This volatility, while challenging, also presents opportunities to reassess and potentially capitalize on shifts in stock and bond prices.
2. Shifting Economic Indicators
   Weak economic data, including a decline in new orders and employment, alongside the Fed’s cautious stance on interest rates, signal a pivotal moment. Investors should stay alert as these indicators may influence portfolio decisions in the coming months.
3. Sector Rotation Driven by Interest Rate Changes
   With a rapid decline in interest rates, sectors such as financial services, energy, and utilities, particularly smaller companies, have started to outperform. This rotation underscores the importance of strategic sector exposure in your portfolio.

We hope you find this video educational and informative. If you have any questions, please contact your Merit financial advisor. 

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