DHIL - Diamond Hill Intermediate Bond Strategy Q1 2024 Market Commentary

2024-05-16 00:15:00 ET

Summary

• Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline and client alignment.
• Strong economic reports on the labor market and inflation led to higher interest rates and negative returns in the fixed income markets in Q1 2024.
• The labor market exceeded expectations, adding a quarterly average of 276,000 jobs, while inflation remained stubbornly high.
• The Federal Reserve's rate cut path may be influenced by upcoming economic data and potential political implications, with a rate cut in September being a possibility.

Resilient Labor Market, Stubborn Inflation Test Team Fed’s Rate Cut Path

2023 finished on a powerful note, fueled by near-historic performance in November and December, pushing the Bloomberg US Aggregate Bond Index into positive territory and potentially setting the tone for an ongoing recovery from 2022’s challenges. Alas, this was not to be the case....

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