Castle Island’s Mid-Year Outlook
| Fed Opinion, Interest Rates and Election. Castle Island’s Outlook |
| We have been through a tremendous amount of events over the past week. And while the terrible assassination attempt was thankfully thwarted, the Fed’s, and Jerome Powell’s commentary this past week has been somewhat overshadowed. During the Fed Chief’s testimony, Mr. Powell firmly acknowledged their significant progress in bringing down inflation, he also recognized the Fed’s dual mandate on full employment focus. With inflation coming down closer to the 2% target, unemployment has indeed ticked up slightly. Our opinion is that the Fed now has the appropriate supporting data needed to begin easing monetary policy. We are expecting one, if not two rate cuts by year end. How do you position investment exposure moving forward? With most corporate earnings results remaining robust, we continue to be constructive on equity exposure. Regarding tax-free income, we remain exposed to intermediate term maturities and have become very selective with credit spreads to treasuries.Direct Private Alternatives and Private Equity have remained attractive. Please contact us directly to receive our broader Mid-Year Outlook Castle Island remains the premier multi-family-office, truly serving our client’s complex financial needs. We remain deeply rooted in highly efficient investment thesis and detailed tax strategies. “We Truly Redefine True Partnership” This is further supported by Charles Schwab’s mid-year outlook linked below. https://www.schwab.com/learn/story/mid-year-outlook-us-stocks-and-economy |