In his latest video update, Rathbones co-CIO Ed Smith warns against excessive expectations for US interest rate cuts – and against over-reacting to stock market volatility.
Keeping a level head late in the economic cycle
30 September 2024
Article last updated 30 September 2024.
The US Federal Reserve and Bank of England have both started reducing interest rates, after a long and, at times, agonising wait.
US government bond markets, which have overreacted often (in both directions) over the past couple of years, are pricing in more rate cuts than the Federal Reserve might deliver in our opinion.
US equity markets have been more volatile even as they keep posting new highs, characteristic of the ‘late cycle stage’ that we’ve entered.
In response to all this noise, it’s important for investors in global stock markets to keep a clear head. Panic selling can greatly harm long-term performance.
You can also sign up for here for our Wealth Management Festival webinar series from 7 to 11 October, hosted by Ed and other investment experts at Rathbones.
