S2 E32: Back to school: interest rates, small caps, the election, and the impact on your portfolio

Blue Chip FM

Watch this full episode on YouTube here!

In this episode of Blue Chip Now, hosts Daniel Dusina (CFA®), Matt Mondoux (CFA®, CMT, CFP®), and Dan Seder (CFA®, CMT, CFP®) explore the latest market trends and what’s driving current market movements. They delve into the impact of interest rates, the yen carry trade, and the evolving economic landscape, including an analysis of small-cap and large-cap stocks. The team also discusses the implications of the upcoming U.S. presidential election for the markets and what investors should consider during these uncertain times. Tune in to learn how sentiment and broader economic conditions might influence your investment decisions. Key Points From This Episode:

[00:01:07] Start

[00:01:07] Introduction to market returns and asset class performance.

[00:02:34] Factors contributing to market drops, including labor market data and the yen carry trade.

[00:03:54] Explanation of the yen carry trade and its influence on August’s market moves.

[00:05:00] Market sentiment's role in influencing investment behaviors.

[00:06:22] The impact of extreme market sentiment on timing investment decisions.

[00:09:08] Analysis of U.S. market recovery trends and the Federal Reserve's impact.

[00:12:54] Powell's approach to communicating interest rate policies and market reactions.

[00:14:40] Influence of interest rates on “bond proxy” sectors like utilities and real estate.

[00:16:31] Small caps vs. large caps performance in various interest rate environments.

[00:20:18] Best times to invest in small caps: during rate-cutting cycles.

[00:22:02] Discussion on the U.S. presidential election implications for market volatility.

[00:23:11] How election outcomes influence market sentiment and stock performance.

[00:24:47] The significance of congressional gridlock on market expectations.

[00:26:31] The role of CEOs in maintaining company performance amid political and economic changes.

Links: Blue Chip Partners Matt Mondoux on LinkedIn Dan Seder on LinkedIn Daniel Dusina on LinkedIn Tags: Market Analysis, Interest Rates, Federal Reserve Policy, Market Sentiment, Yen Carry Trade, U.S. Presidential Election, Stock Market Volatility, Small Cap vs. Large Cap, Investment Strategy, Economic Data, Gridlock in Congress, Powell's Interest Rate Remarks, Asset Class Performance, CEO Leadership, Investor Behavior

Delegate Confidently ™ and call our office today to start getting the most life out of your wealth 248-848-1111

Helpful Links-

Click here for important disclosure information: https://www.bluechippartners.com/disclosures/

Click the link below to schedule a call: Blue Chip Partners | https://www.bluechippartners.com/schedule-a-call/

Listen to our weekly market analysis podcast on your favorite platform by clicking here: https://www.bluechippartners.com/blue-chip-now/

Are you a corporate executive that gets paid with company stock? We help executives get the most out of their RSUs and stock options. Click here: https://www.bluechippartners.com/financial-services/executive-compensation/

Stay financially savvy by reading our blog. Click here: https://www.bluechippartners.com/blog/

Are you a financial professional looking for a new career opportunity? Blue Chip Partners was voted as one of the Best Places to Work again in Southeast Michigan in 2024 by Crain’s Detroit Business. Apply here: https://www.bluechippartners.com/about/career-opportunities/

Do you love market commentary as much as us? Watch previous Quarterly Edge outlook reports by clicking here: https://www.bluechippartners.com/educational-webinars-videos/

We are in the news! Non-paid features in Forbes, Business Insider and more featuring Blue Chip Partners can be viewed by clicking here: https://www.bluechippartners.com/in-the-news/

Need to update your estate plan? https://www.BlueChipEstatePlanning.com Blue Chip Estate Planning, PLLC is a law firm established to provide estate planning services to clients of Blue Chip Partners, LLC, their families, and other residents of the State of Michigan. Blue Chip Estate Planning is related through common ownership and control to Blue Chip Partners. Services by Blue Chip Estate Planning are separate and distinct from any agreement with Blue Chip Partners. For more information, call Kimberly Browning at 248-873-3244.