Description

Recent years have seen rolling recessions influenced by Fed monetary policy, but signs now point to a more defined cycle, with positive markers like growing leading economic indicators and renewed consumer confidence – a departure from traditional boom-and-bust patterns.

In our latest episode of The Wealth Enterprise Briefing, Michael Zeuner, managing partner at WE Family Offices, is joined by senior investment manager Sam Sudame for an insightful conversation about the evolving global economy and markets.

Throughout the episode they discuss:

• Market Dynamics in Focus: Despite anticipated corporate earnings recovery, factors like higher interest rates and historically high valuations present nuances in this new cycle. Equities remain a focus, with strong earnings growth expected, albeit tempered by valuation challenges.
• Fixed Income Opportunities: Against the backdrop of higher rates and subdued equity returns, fixed income emerges as an intriguing option. With the Fed signaling prolonged elevated rates, short to intermediate-duration fixed-income assets become compelling.
• New Outlook on Commodities: Within shifting dynamics, commodities emerge as a concurrent asset class. Surging demand for industrial metals like copper and aluminum suggests potential opportunities in the commodities space as the new cycle gains momentum.

Adaptability and flexibility are key strategies for maneuvering through this evolving landscape. While some sectors may mirror past patterns, others demand a fresh perspective and a vigilant eye for emerging opportunities.

If you have any questions about how to better manage this new economic cycle, please do not hesitate to contact us.