U.S. markets pushed higher by 11% on the quarter, while international continues to outperform by 12% on the quarter and 17.9% YTD.
- The Case for International Investing – Global equity markets appear to be priced for perfection; unfortunately, we live in an imperfect world and the risk reward ratio, given the historically high valuations, warrants a defensive posturing. In Q4’2024 we identified the tactical opportunity in international markets purely from a relative valuation basis, as relative valuations between international and domestic equity begin to approach historical averages one should consider tactically rotating out of International and back into US LCV or fixed income.
- The Fixed Income Story – Fixed income pushed marginally higher by 1.2%, up 4% YTD. Minutes from the FOMC meeting on July 9 shows that consensus amongst the FED Board of Govenor’s in split in regard to the timing and degree of any proposed 2025 policy rate cuts. Futures markets are projecting a targeted range for front end rates between 350 to 425 BPS (with a combined probability of 91.9%), SWAP markets are currently pricing in one 25 BPS rate cut before the end of the year. The narrative for peak rates still seems to be intact.
Click the link below to read the complete document!
Download Now