Executive summary In this paper, we: • Revisit our 2024 research paper on asset performance in interest-rate-cutting cycles to compare our outlook to how equity and fixed income markets actually performed • Give an update on the current global rate-cutting cycle, as many central banks have continued cutting rates during the Federal Reserve’s pause • Review the performance of equities in the eight previous historical periods when the Fed paused in the middle of a rate-cutting cycle and later resumed cutting • Review the performance of fixed-income assets in the same eight periods of a Fed pause • Review the macro backdrop of the eight periods to consider GDP growth, earnings growth and equity valuations.”
Morten W. Langer
