Macro views

All aboard the crazy train

August 14, 2024 - 2 min read

Portfolio Manager and Lead Portfolio Strategist – Natixis Investment Managers Solutions

Brian Hess

VP, Investment Strategist – Natixis Investment Managers

Jack Janasiewicz and Brian Hess discuss the recent market correction, economic environment, potential rate cuts, the yen carry trade, and positioning in the Natixis model portfolios. Hear more about:

Why they believe the economic backdrop is slowing vs. slow – a big difference – and why we have landed in a soft patch vs. a recession.
Although there is slowing economic data, the labor market is a key metric and is still in good shape. Workers have jobs; are earning solid, positive, real wages; and are going to continue to spend.
Why the Fed will likely introduce a series of interest-rate cuts starting in September and then, at some point pause, but it probably won’t be a sustained and prolonged rate-cutting cycle.
Why the unwinding of the yen carry trade has adversely impacted risk appetite in general, which forced other things to matriculate in a massive recast of leveraged trades across many different asset classes.
How the model portfolios remain focused on US stocks as a preferred venue.

Past performance is no guarantee of future results.

Investing involves risk, including the risk of loss. The views and opinions are as of August 7, 2024, and may change based on market and other conditions. This material is provided for informational purposes only and should not be construed as investment advice. There can be no assurance that developments will transpire as forecasted. Actual results may vary. Although Natixis Investment Managers believes the information provided in this material to be reliable, including that from third-party sources, it does not guarantee the accuracy, adequacy or completeness of such information.

Natixis Advisors, LLC provides advisory services through its division Natixis Investment Managers Solutions. Advisory services are generally provided with the assistance of model portfolio providers, some of which are affiliates of Natixis Investment Managers, LLC.

Natixis Distribution, LLC is a limited purpose broker-dealer and the distributor of various registered investment companies for which advisory services are provided by affiliates of Natixis Investment Managers, LLC. Natixis Investment Managers does not provide tax or legal advice. Please consult with a tax or legal professional prior to making any investment decisions.

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