In Review

The economic momentum of the 1^st quarter continued into the 2^nd, providing another positive quarter for equity markets. Initially, investors dialed back expectations for rate cuts from the Fed as economic overheating concerns took hold. These worries abated and soft-landing hopes were revived as inflation resumed a downward trajectory. Fixed income continues to be challenged in this environment as rate cuts continue to be delayed with continued economic growth translating into stickier inflation that remains above levels consistent with central bank targets. However, with elevated geopolitical tensions and an upcoming global election cycle, risks remain that could derail the benign macro backdrop.

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