S3E37 – Q3 2024 Market Update & Economic Outlook

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In this episode, we dive into the key developments in the markets during the third quarter of 2024, along with an update on the current economic environment. Join us as we discuss how stocks surged across the globe, inflation continues to cool, and the Federal Reserve’s pivotal decision to lower interest rates in September. Despite a slightly weaker labor market, overall economic indicators remain positive.

Key Takeaways:

• Stocks have shown strong performance across all major indices, continuing a year-long rally.
• In response to a cooling labor market and declining inflation, the Fed cut interest rates by 50 basis points in September.
• Inflation dropped to 2.6% in August, aligning more closely with the Fed’s 2% target.
• While unemployment ticked up slightly to 4.2%, recessionary signals remain muted.
• Election season and geopolitical uncertainty are causing some investor anxiety.

What’s Next:

• Will China’s stimulus package be enough to stabilize its economy and bolster confidence in the property market?
• With parts of the yield curve normalizing, bond investors are starting to see better compensation for long-term risk.
• As we approach the U.S. election in November, how will political developments influence the markets?

For the details and a full explanation of what happened in the third quarter and where the economy sits now, you can read East Bay’s full Quarterly Investment Commentary HERE or watch Mario’s recorded presentation.

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