TOL - 30th Sep, 2024
5 asset classes for the global interest rate cutting cycle
On the next Signal or Noise, we discuss what the Fed's first rate cut in four years means for Australian investors.
Much has already been written about the Federal Reserve's unusual decision to cut interest rates by 50 basis points, twice the regular size of a standard rate cut. The move has had ripple effects on global markets - but depending on your asset class - those moves were noticeably different. In equities, the move was greeted by cheers while the bond market rally more or less came to a halt, as officials signalled that the market would be getting fewer rate cuts than it wanted.
A lot has also been written about the fact that Fed Chair Jerome Powell explicitly signalled that markets should not expect jumbo moves to become the norm.
But was it the right call?
Even now, as the dust has settled, the Signal or Noise panel still disagree on whether it was.
Ahead of the next episode of Signal or Noise, join me and the panel as we discuss the implications and timing of the Fed's first rate cut in four years. Our panel for the upcoming episode includes myself, our resident economist Diana Mousina of AMP, and:
- Cameron McCormack of VanEck
- Sally Auld of JBWere
Note: This Sneak Peek was taped on Wednesday 25 September 2024. Join us for the next edition of Signal or Noise, live Monday 30 September.
Questions asked
The Fed has cut rates for the first time since the outbreak of COVID. How much is this a SIGNAL for Australian investors?
The Fed decided to cut rates by 50 basis points. Was it the right decision?
If you think this is a shallow rate cutting cycle, what is one asset class where you want to be positioned today?
If you think this is a deep rate cutting cycle, what is one asset class where you want to be overweight today?
Finally, the RBA says it won’t be pressured into rate cuts just because the Fed has started. Is it the right move or is it a mistake they’ll end up paying for later?
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Hans is one of Livewire's senior editors. He is the creator and moderator of Livewire's economics series "Signal or Noise". Since joining Livewire in April 2022, his interview record includes such names as Fidelity International Global CIO Andrew McCaffery, JPMorgan Asset Management Global CEO George Gatch, and Lazard Chief Market Strategist Ron Temple just to name a few. He has a double degree in economics and journalism.
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Hans is one of Livewire's senior editors. He is the creator and moderator of Livewire's economics series "Signal or Noise". Since joining Livewire in April 2022, his interview record includes such names as Fidelity International Global CIO Andrew...
Expertise
Hans is one of Livewire's senior editors. He is the creator and moderator of Livewire's economics series "Signal or Noise". Since joining Livewire in April 2022, his interview record includes such names as Fidelity International Global CIO Andrew...
Expertise
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