Outlook on U.S. Economic Strength and Emerging Risks

The Wealth Enterprise Briefing

In the latest episode of The Wealth Enterprise Briefing, WE Family Offices’ Michael Zeuner and Sam Sudame discuss insights from WE’s newly released Q3 macro update, providing an overview of current economic conditions and essential macro factors shaping the outlook. They highlight the resilience of the U.S. economy despite fluctuations in interest rates, discussing both positive indicators and potential challenges that investors should monitor.

Key insights from their discussion include:

• Optimistic economic indicators: The U.S. economy shows strength, with the City Surprise Index and U.S. composite PMIs pointing to solid growth. Services are outperforming manufacturing, while the yield curve disinversion signals economic normalization.
• Growth drivers and risks: Economic growth is propelled by capital expenditures, autos and real estate. Real estate, however, faces headwinds from rising mortgage rates. Key risks include potential job market shifts and inflation spikes, which could influence Federal Reserve policies.
• Federal Reserve’s recent moves: The Fed’s recent 50-basis-point rate cut is a significant factor, with fixed-income investors advised to manage duration risk carefully to balance returns against potential reinvestment risk.

Looking ahead, Michael and Sam hint at further discussions on equity markets and their response to these macro factors. For those interested in a sweeping view of the economy’s trajectory and its investment implications, listen to the full episode for an in-depth exploration.

As always, if you have any questions or need further insights into your investment strategy, please don’t hesitate to contact us.

Important Information:

This podcast contains our current opinions and commentary that are subject to change without notice. Our commentary is distributed for informational and educational purposes only and does not consider the specific investment objective, financial situation, or particular needs of any recipient. Information contained herein has been obtained from sources we believe to be reliable, but we do not guarantee its completeness or accuracy. The information contained herein does not constitute legal or tax advice to any person. Please consult with your legal or tax advisor regarding any implications of the information presented in this presentation.