U.S. large-cap stocks declined 0.9% in October while small-cap stocks declined by 1.4%. Bonds also fell; the Bloomberg U.S. Aggregate Bond Index decreased 2.5%.
Headline inflation eased to 2.4% year-over-year, and even with a solid labor market, markets still expect an additional 0.5% in rate cuts by year end.
Treasury yields and mortgage rates have risen since the September Fed rate cut, leading to elevated mortgage rates and increased home prices, as well as a decline in home sales.
Polls show a very close election, creating uncertainty around the future monetary and fiscal policies that will significantly shape market returns. Regardless of the outcome, however, the fiscal deficit is expected to grow.
October 2024 Commentary: The American Dream
Summary
Read and download the commentary here.
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