AFMC - H1 2024 Review: The Stage Is Set For Rate Cuts

2024-07-05 21:10:00 ET

Summary

• Despite economic uncertainty, markets rallied in the first half of 2024, driven by expected Fed rate cuts and surging AI stocks.
• The second half of the year is likely to be largely characterized by potential Fed rate cuts, bond market stabilization, cash holdings shifting to risk assets, and election-driven volatility.
• Many investors remain in cash, attracted by elevated yields, and representing a potential tailwind to risk assets.

Despite economic uncertainty, markets rallied in the first half of 2024, driven by expected Fed rate cuts and surging AI stocks. The second half of the year is likely to be largely characterized by potential Fed rate cuts, bond market stabilization, cash holdings shifting to risk assets, and election-driven volatility. Maintaining a long-term, disciplined approach will be key to navigating the next six months. ...

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