Posted 1/31/2024, 1:20:00 AM
Fed Forecasts Lower Inflation, Slower Growth; Sees Rate Cuts Ahead, Mixed Outlook for Stocks and Bonds
- Inflation to return to Fed target in 2024, expect economic growth to moderate and rate cuts to start in Q2 or Q3
- Softer consumer spending and lack of corporate inflation cover limit earnings upside going forward
- Quality growth, value, high-dividend, low-volatility, and small-cap stocks remain attractive equity opportunities
- Bond market potential remains high with expected rate cuts and long-term yields falling further
- Thoughtful portfolio construction key in "scalpel" phase; focus on research to tap opportunities and adapt to markets