MARKET OVERVIEW

As of Close of 3rd Quarter 2024

Market Recap

Soft economic data supported the Federal Reserve’s decision to cut interest rates by 50 basis points in September. Personal
spending has slowed as income growth is cooling down. CPI fell below 3%, to a low of 2.5% for August data.
Bonds rallied as prices climbed and yields dropped as expected for the summer months leading into the September rate cuts which
were priced in the market months earlier.
Bond spreads have narrowed despite macro and geopolitical risks
Stocks remain near all-time highs as the S&P 500 is up ~19% Year to Date
Gold and silver continue to rally, up over ~25% and ~30% respectively heading into the 4th quarter. While crude oil has decreased
over the summer months, we saw a spike in oil prices due to the Middle East conflict escalating.

More interest rate cuts to come over the 4th quarter and bond spreads to continue to tighten as investors are bullish on credit as
they swap US treasury for risk assets.
Expecting a rally in the bond market sending rates in the low 3% range by year’s end.
Remaining overweight equities vs bonds as future return in bonds remain limited.
A bull market for gold and silver.
Geopolitical risks remain a concern and could cause disruption in the markets. Uncertainty surrounding the US elections may put a
pause equity returns.