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Not “if” but “when!”

July 14, 2024

From the desks of Stanley Katz & Lauren Madera

STAY SAFE & HAVE FUN!

Post July 4th holiday celebrations, a couple things became clearer:

  1. The economy is slowing; and
  2. Fed Chair Powell intonated when interest rates may decrease.

All that said, the three major US stock market indices posted slight gains for the week (i.e., DJIA: +1.59%, S&P 500: +0.87%. Nasdaq: +0.25%).

Second quarter earnings season began last week. Although the economy remains healthy, the net result indicates slowing. The Consumer Price Index report—an important inflation metric—echoed this message. Nuveen’s 2024 Midyear Outlook, “Widening cracks in the investment landscape,” digs deeper on this subject. Click the link below.

As stated in recent Weekly H&Cs, the question has never been IF the Federal Reserve would cut the Fed Funds interest rate but WHEN. Yes, inflation continues to rise but at a much slower pace. Recently, however, the unemployment rate has risen as well, a signal that the Federal Reserve must note. Hartford Funds’ “Let the Central Bank Rate-Cutting Party Begin” came to the same conclusion. We think you’ll find it to be an interesting read.

Below are links to a number of third-party research reports that we have read and analyzed over the past week. We hope you will find the information interesting, useful, and worthwhile.

Nuveen:

  • Widening cracks in the investment landscape

Hartford Funds:

  • Let the Central Bank Rate-Cutting Party Begin

Argus:

  • Solid Second Quarter Amid Signs of Slowing Activity

Neuberger Berman:

  • Equity Market Outlook 3Q 2024

Capital Group:

  • AI fever: Has it gotten too hot?

Stanley Katz & Lauren Madera, Financial Advisors
ClientFirst Financial Strategies, Inc.
937-293-5500

Investing involves risk, including the possible loss of principal. The information contained herein has been prepared solely for informational purposes. Nothing contained herein should be construed as a recommendation to either buy or sell any security or economic sector, or implement any strategy discussed. Please consult with your financial advisor, accountant, and/or attorney before acting on this information. ClientFirst Financial Strategies, Inc. is a DBA of OneSeven.  OneSeven is an investment advisor registered with the U.S. Securities and Exchange Commission (SEC).  Registration with the SEC does not imply a certain level of skill or training.  Securities offered through Fortune Financial Services, Inc. (Fortune), Member FINRA/SIPC.  OneSeven and Fortune are separate entities.  Investment Products are Not FDIC Insured, Offer No Bank Guarantee, and May Lose Value.

OneSeven and Fortune do not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third parties.

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Disclosures: OneSeven (“OneSeven”) is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. Services are provided under the name ClientFirst Financial Strategies (“ClientFirst”), a DBA of OneSeven. Investment products are not FDIC insured, offer no bank guarantee, and may lose value.

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