The summer is not officially over, but Labor Day usually marks the end. Schools start and vacations are over. It is looks like we have had a good summer with the Fed likely to lower rates, inflation manageable, and still no recession. The markets seem to have rationalized albeit it is still a large cap world. Small caps have done well this summer even with a give-back in August. The Mega caps in information technology and communications eaves have started to rationalize although they still dominate the markets. Growth stocks have slowed their ascent, but there is a rotation to low volatility and high dividend stocks. Bonds have done well this summer. Overall, the markets are preparing for the Fed cuts, assuming inflation has been tamed, and see continued potential gains but with a focus on getting more defensive.
It was a good summer, now we must prepare for fall and winter.
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