FNY - Above The Noise: Putting Outsized Equity Gains Into Focus
2024-02-08 14:20:00 ET
Summary
- Over the intermediate term, I believe falling inflation and moderating but not collapsing growth still favor cyclical equities and riskier credit.
- It’s time for our politicians to scare us into thinking that our investment accounts are in trouble if the other candidate wins. The data says otherwise.
- Could shipping disruptions in the Red Sea lead to the type of inflation we saw in the early 2020s? I say no.
By Brian Levitt, Global Market Strategist
That escalated quickly, as Ron Burgundy would say. In fact, while it may sound counterintuitive, I wish the broad market (meaning not just the “Magnificent 7") advance hadn’t happened so quickly in November and December. 1 Don’t get me wrong. It was gratifying to experience the end-of-the-year plunge in interest rates 2 and the coincident broad US equity market rally 3 . We had spent the year talking to cash-heavy investors about coming off the sidelines - “locking in” interest rates of longer-maturity bonds and/or investing in equities as the market became increasingly attuned to the “soft landing” economic scenario. I would have preferred this “everything bull market” to have played out over multiple quarters, providing investors with ample opportunity to get more involved....
Above The Noise: Putting Outsized Equity Gains Into Focus