Implied Fed Funds Target Rate
Implied Fed Funds Target Rate The FOMC’s latest dot plot projects only 25 basis points of rate cuts for 2024, which looks hawkish at first glance. Image: Bloomberg
Implied Fed Funds Target Rate The FOMC’s latest dot plot projects only 25 basis points of rate cuts for 2024, which looks hawkish at first glance. Image: Bloomberg
Equity Funds Flows Fund flows are frequently viewed as a barometer of investor behavior and sentiment. The tech sector has sustained inflows year-to-date. Image: Goldman Sachs Global Investment Research
Fed Funds Rate and Fed Funds Futures Deutsche Bank’s forecast for the fed funds rate remains more hawkish than many mainstream projections, expecting a single rate cut in December 2024, followed by modest reductions in 2025. Image: Deutsche Bank
Equity – Aggregate Financial Asset Allocation Among Households, Mutual Funds, Pension Funds, and Foreign Investors Compared to historical standards, a 52% allocation to equities among investors is considered high, which increases the potential for volatility and losses, particularly during a market downturn. Image: Goldman Sachs Global Investment Research
Fed Funds Rate Expectations Despite the initial anticipation of multiple rate cuts in 2024 as suggested by the Fed’s “dot plot,” the current market sentiment indicates a more reserved outlook, with fewer rate cuts in 2024. Image: BofA Global Investment Strategy
4-Week Flow Pace into Bitcoin Funds There has been a significant decline in the 4-week flow pace into Bitcoin funds. Image: J.P. Morgan
Interest Rates – U.S. Federal Funds Rate Expectations BofA expects a 3.5-3.75% terminal rate in this cutting cycle, up 50bp from their previous forecast. This suggests a need to tighten monetary policy to control inflation and maintain economic balance. Image: BofA Global Research
Money Market Fund Assets vs. Fed Funds Target Rate Money market funds often experience outflows 12 months after the initial rate cut. This occurs as investors reallocate their investments and adjust their risk exposure in response to fluctuations in interest rates and market conditions. Image: BofA Global Fund Manager Survey
Cumulative Annual Flows to IG Bond Funds Investment-Grade (IG) corporate bond funds have experienced a surge in investor interest and confidence this year, resulting in robust inflows into this asset class. Image: BofA Global Investment Strategy
Interest Rates – Fed Funds Rate Goldman Sachs now expects the Fed to implement three rate cuts in 2024, down from its earlier projection of four rate cuts, in response to elevated inflation data and evolving economic conditions. Image: Goldman Sachs Global Investment Research