Markets Reflect on "Cautious" Fed, "Not Overly Bullish" on Gold

Market Overview - Markets reached all-time highs following the Federal Reserve's recent announcement, particularly benefiting smaller companies sensitive to interest rates [1][5] - The Fed is expected to implement two to three more rate cuts by the end of the year, which is viewed positively by the markets [2][5] Labor Market Insights - Concerns were raised regarding the labor market, with a noted decrease in the supply of labor due to immigration, while demand is decreasing even more, leading to weaker job creation [3][4] - The labor force participation rate remains a significant concern, indicating potential risks in job growth [4][5] Fixed Income Strategy - The investment committee is focusing on fixed income, expressing concerns about volatility and positioning portfolios towards shorter duration and higher quality bonds [8][10] - High yield bonds are viewed tactically, but the spreads are considered too tight for a strategic investment [10] Commodity Trends - Gold reached new all-time highs prior to the Fed announcement but has since pulled back, with silver and copper also declining [11] - The outlook for commodities is influenced by central bank actions and the behavior of the dollar, with a cautious stance on gold due to potential overvaluation [12][14] International Equity Exposure - The company maintains international equity exposure, focusing on quality stocks that are less sensitive to tariffs, with positive sentiment towards certain Japanese companies [14][15] - Technology remains a favored sector, with a multi-factor approach to portfolio building, emphasizing momentum, quality, and value [16][17] Healthcare Sector Investments - Recent additions to the portfolio include healthcare names like United Health Group and Regeneron, which are seen as oversold [18] - The company continues to favor major technology stocks, trimming positions in some to manage risk effectively [19]