Xponance, Inc.’s Post

Many economic indicators point to further economic expansion in the second quarter, albeit at a slower pace. Consumer spending, buoyed by a still-tight labor market, remains positive but may also be slowing given higher debt costs and depleted excess savings. Given the positive economic environment, the Federal Reserve (Fed) has been able maintain its restrictive monetary policy to combat elevated inflation.

The economy matters, but it matters differently to different investors depending on their distinct objectives, timelines, and asset allocation. And it’s not the only thing that matters. https://buff.ly/3Te0jcy

📈💸 As we monitor Q2’s economic landscape, understanding the interplay of rising interest rates and their effects on the bond market is crucial. The Federal Reserve's potential actions could reshape our investment strategies. Are we heading towards sustainable growth or temporary inflation spikes? At Exencial Wealth Advisors, we're keeping a close eye on these factors to navigate the uncertainties. #InterestRates #BondMarket #EconomicInsighty 📊📉 https://bit.ly/3UqrfGz

Do markets need rate cuts to maintain a healthy economy? Why do investors think we need interest rate cuts? Our perspective here:

Last week, we noted a “change of speed” for the U.S. economic growth outlook. Inflation has resumed its decline, and there are emerging signs of fraying in the U.S. labor market. While equity investors have not yet seen downward GDP revisions as a reason to turn cautious (likely because they also brighten hopes for rate cuts), corporate credit spreads are now several months removed from their 2-year lows. We are becoming concerned that High Yield credit, in particular, may be on the “Highway to the Danger Zone”. Read NewEdge Wealth's #WeeklyEdge here: https://lnkd.in/eZ7TJfuz #NewEdgeWealth

The third quarter began with buoyant equity markets as investors became more confident in a soft-landing scenario for the U.S. economy, encouraged by a “goldilocks” backdrop of disinflation, and moderating, but not plummeting, economic growth.

The current backdrop of higher yields allows investors to generate income and diversify their portfolios. A focus on high-quality segments of the bond market should help mitigate any potential economic downturn.

The economy and markets have defied expectations of a slowdown, but what does the future hold? Join CIO Chris Hyzy for a sneak peek of what to expect from our upcoming Midyear Outlook.

The economy and markets have defied expectations of a slowdown, but what does the future hold? Join CIO Chris Hyzy for a sneak peek of what to expect from our upcoming Midyear Outlook.

The economy and markets have defied expectations of a slowdown, but what does the future hold? Join CIO Chris Hyzy for a sneak peek of what to expect from our upcoming Midyear Outlook.