Tactical Investment Strategy — August 2024

August 2, 2024 — Tactical Investment Strategy provides an overview of key economic and policy themes and how Sage is tactically positioned in the current market environment.

Key Takeaways

• The FOMC meeting this week had an expected dovish tone, and markets are locked in on a September start to rate cuts, followed by two more in 2025. These developments keep us optimistic and reinforce our position to extend duration in fixed income and diversify within equities.
• July fixed income returns bolster our view that “the year of the bond” return scenario has only been delayed, and we see a positive outlook for fixed income over the next several quarters.
• For equities, Fed cuts and AI remain tailwinds, but economic weakness and consumer fatigue suggest upside may be harder to come by and include broader participation.