September 2024 Market Update
In this September market update, Chief Investment Officer Brian Andrew, CFA®, explores recent market trends and their potential influence on your investment strategy in the months ahead.
Key Takeaways:
- Market Optimism for a Soft Landing: Despite signs of economic slowdown, including rising unemployment and contracting manufacturing, the markets are optimistic about a “soft landing.” The S&P 500 is up 18% for the year, bond yields are decreasing, and the expectation is for a gradual interest rate cut by the Federal Reserve.
- Changing Market Leadership: There has been a shift in market leadership from large-cap tech stocks, which led earlier gains, to small-cap and value stocks. In addition, there is an increased focus on companies with strong balance sheets and lower leverage, which are expected to perform better in a slowing economy.
- Uncertain Economic Outlook: While economic resilience continues, with consumer spending remaining strong and GDP growth above average, the outlook is mixed. Housing starts remain low, unemployment is rising, and the Federal Reserve’s upcoming decisions on interest rates will be crucial in determining market direction. A soft landing is expected, but there is an increased probability of recession.
We hope you find this video both informative and insightful. For any questions, please reach out to your Merit financial advisor.
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