LPWMG

After a week of significant declines, the stock market rebounded strongly, with the S&P 500 and Nasdaq posting their best weekly performances of the year, gaining 4% and 5.9%, respectively - nearly offsetting the losses from the previous week.

This week, all eyes will be on the Federal Reserve, as its monetary policy committee is widely expected to cut interest rates for the first time since 2020. This meeting is considered one of the most pivotal in recent history. While a rate cut is largely anticipated, debate continues over whether the reduction will be 25 or 50 basis points. In addition to the Fed, both the Bank of England and the Bank of Japan will announce their policy decisions. Although much of the expected rate cuts have been priced into the market, we believe these reductions will ultimately be a net positive.

However, rising geopolitical risks in Europe and the Middle East, coupled with ongoing uncertainties in the U.S. political landscape, could lead to increased market volatility as we approach year-end. Our focus during this time will be to capitalize on any inefficiencies or market dislocations that tend to occur in such environments.

I’ll be in the Boca office this week for meetings with our investment committee, where we’ll be discussing future opportunities. As always, if you have any questions about individual stocks, the broader market, or the economy, please don’t hesitate to reach out—we’re happy to address any inquiries you may have.

Our Best Always,

Bob

Robert O'Braitis
CEO
Chief Investment Strategist