Asset Allocation Perspectives 2H Outlook

August 1, 2024 — This presentation provides an overview of our market outlook and key themes, and it illustrates how Sage is positioned in the current environment.

Key Themes

Economic and Fed Outlook

• The US economy is still on track for a “softish” landing. Inflation appears less sticky, which coupled with weaker growth momentum, gives the Fed latitude to cut rates in September.
• We see downside risk related to labor market weakness and the nature of government spending as the driver of job growth.

Election Update

• Market positioning based on a certain election outcome doesn’t have a consistent pattern in historical returns and is not advised.
• The Fed will not be influenced by election noise given that they have conducted policy normally during past election cycles.

Asset Allocation and Positioning

• Our two key themes for the back half are the two D’s: duration and diversification.