July 2024 Market Update
In this July market update, our Chief Investment Officer, Brian Andrew, CFA®, examines the latest market trends and discusses their implications for the month ahead.
Key Takeaways:
- Political Impact: The upcoming election could significantly affect fiscal policies, tariffs, and defense spending. These changes might influence market trends, with potential benefits for industrials and headwinds for healthcare.
- Interest Rates: The Federal Reserve is expected to cut interest rates in September and December. Despite inflation falling below 3%, stable rates could benefit bond investors moving out of cash, although Fed forecasting reliability is questioned.
- Market Volatility: The stock market saw a notable rally led by small-cap stocks in July. However, caution is advised until economic acceleration is clearer. Expect volatility August through October, which could present investment opportunities due to price fluctuations.
