abrdn’s Post

The Fed needs to cut interest rates NOW! 📉 The latest article is penned by Bill Dudley, who served as the President of the Federal Reserve Bank of New York from 2009 to 2018. With almost a decade of experience, Dudley’s insights are significant. He’s currently the chair of the Bretton Woods Committee and a non-executive director at Swiss Bank UBS since 2019. 💼 🔍 Let's dive into what he has to say about the current economic landscape. Stay informed, and keep your investment strategies sharp! 🔗 Join us in the upcoming Masterclass: http://spi.ke/lis #Spiking #InterestRates #InvestmentStrategy

Another insightful article written by Westcourt Capital's Founder & co-CEO, David Kaufman, JD, CAIA, on the Financial Post. David delves into the history of bank stocks, highlighting how investor psychology often leads to overreactions during times of market stress, and further emphasizes the importance of maintaining a long-term perspective to avoid making impulsive decisions that might deviate from a well-thought-out strategy. Read the full article here: https://lnkd.in/erYaNiTB #InvestmentStrategy #BehavioralFinance #WealthManagement

In this month’s report, “Sea of Liquidity”, Rockefeller Global Family Office Chief Investment Officer Jimmy Chang examines the evolution of two items on the Fed’s balance sheet – the Overnight Reverse Repo Facility (ON RRP) and Treasury General Account (TGA) – and how they impact market liquidity and asset prices. With the exception of 2022, the first half of this decade has seen market liquidity and asset prices buoyed by these programs. Jimmy also discusses how the Fed may respond after the current era of excess liquidity winds down in the not-too-distant future.  

BD8 Capital Partners CEO Barbara Doran and Morgan Stanley's global chief economist Seth Carpenter break down the state of the market and the economy as markets head for big weekly losses after yesterday's Federal Reserve rate cut.

Check out this short and insightful conversation with our Chief Investment Office - Richard Madigan and Nancy Rooney break down our response and portfolio adjustments following the Federals Reserve's recent unexpected moves. Also covered include the markets' intersection with the U.S. Election, the risk/reward of credit vs. equities, and managing a portfolio with markets near all time highs. https://lnkd.in/gGQGKeu4

Before the Federal Reserve lowers short-term interest rates, #investors should consider incrementally exiting #moneymarket funds and #cash. It may be too late if you're waiting for a specific signal to extend #duration, such as the first cut in a Fed cycle. The chart below from Goldman Sachs shows the hypothetical #portfolio return following the first Fed cut (indexed to 100). On average, you'll miss 11pp of upside by waiting. While a #fixedincome portfolio's duration should differ for each investor, it's time to consider short-to-intermediate duration vs. little-to-none. #invest #investing #investments #investmentplanning #money #wealth #rich #income #goldmansachs #gs

Taking Advantage of the Dynamic Market With the Federal Reserve's policy meeting set for September 17-18, 2024, a rate cut seems highly likely, leading many traders to adjust their strategies in anticipation of a shift in interest rates. In our recent webinar, "End of Summer Market Update and Income Spotlight," our expert panelists, Sejal U. Penkar, Timothy Wei, CIMA®, and moderator Jeffrey W. Weston, CFP®, MBA offered valuable insights and outlined strategies specifically focused on generating income in this dynamic market. Click here to watch the full webinar and explore all the strategies discussed: https://lnkd.in/gr_Gh8fS #investing #federalreserve #fixedincome #incomestrategy #passiveincome #wealthmanagement #tortugawealth #capitalgroup

August brought notable #Marketvolatility and then received a boost from the #FederalReserve’s dovish message in #JacksonHole. However, September is known for seasonal weakness and is kicking off with worries over global #economicgrowth and a question of whether anticipated monetary easing is enough to sustain gains in #bonds and #equities. With these challenges in mind, Marija Veitmane, head of equity strategy at State Street, joins #STTStreetSignals to discuss optimal asset allocation strategies for the rest of 2024. http://ms.spr.ly/6048myNjq

August brought notable #Marketvolatility and then received a boost from the #FederalReserve’s dovish message in #JacksonHole. However, September is known for seasonal weakness and is kicking off with worries over global #economicgrowth and a question of whether anticipated monetary easing is enough to sustain gains in #bonds and #equities. With these challenges in mind, Marija Veitmane, head of equity strategy at State Street, joins #STTStreetSignals to discuss optimal asset allocation strategies for the rest of 2024. http://ms.spr.ly/6046mKgeq

Just ran an analysis comparing the returns of the Vanguard LifeStrategy Moderate Growth fund, the Bank of England base rate, and Moneyfacts 90-day notice accounts – all relative to the Consumer Price Index. Starting with a £100k lump sum, the data is clear: staying invested over the long term can significantly outperform cash savings, even in a volatile environment. Investing is a long-term game. While market fluctuations can be unsettling, history shows that staying invested over the long term pays off. Time in the market beats trying to time the market. By remaining invested, you give your portfolio the opportunity to benefit from compound growth, ride out short-term volatility, and capture the upward trend that the market has historically followed. It’s important to stay disciplined and focus on long-term goals, rather than reacting to short-term noise. After all, patience and consistency are key drivers of financial success. If you’d like to see how to create your own analysis and graphs like this, feel free to get in touch. #Investing #WealthManagement #LongTermGrowth #FinancialPlanning #IFA #AdviserTools