Key Takeaways
+ As the U.S. economy continues to avoid a hard landing, some labor market cooling has been evident, but consumer resilience supports moderate growth to close out 2024.
+ While the Federal Reserve began rate cuts in September, there has been some disconnect between the market’s expectations for deeper cuts and the Fed’s more cautious projections, adding uncertainty to fixed income and equity markets.
+ Internationally, Japan remains a key opportunity, benefiting from corporate reforms despite short- term volatility in currency and equity markets, suggesting potential regional value rerating.
+ For fixed income, we suggest investors consider laddered and/or barbell strategies for their portfolios.
Related Resources
IMPORTANT INFORMATION
Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund before investing. For a prospectus or, if available, the summary prospectus containing this and other important information about the Fund, call 866.909.9473 or visit WisdomTree.com/investments. Read the prospectus or, if available, the summary prospectus carefully before investing.
There are risks associated with investing, including the possible loss of principal. Foreign investing involves special risks, such as risk of loss from currency fluctuation or political or economic uncertainty. Investments in emerging or offshore markets are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation and intervention or political developments. Funds focusing their investments on certain sectors and/or regions and/or smaller companies increase their vulnerability to any single economic or regulatory development. This may result in greater share price volatility.
Dividends are not guaranteed, and a company currently paying dividends may cease paying dividends at any time.
Fixed income investments are subject to interest rate risk; their value will normally decline as interest rates rise. High-yield or “junk” bonds have lower credit ratings and involve a greater risk to principal. Fixed income investments are also subject to credit risk, the risk that the issuer of a bond will fail to pay interest and principal in a timely manner or that negative perceptions of the issuer’s ability to make such payments will cause the price of that bond to decline.
Diversification does not guarantee a profit or eliminate the risk of a loss.
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This material contains the opinions of the authors, which are subject to change, and should not be considered or interpreted as a recommendation to participate in any particular trading strategy, or deemed to be an offer or sale of any investment product, and it should not be relied on as such. There is no guarantee that any strategies discussed will work under all market conditions. This material represents an assessment of the market environment at a specific time and is not intended to be a forecast of future events or a guarantee of future results. This material should not be relied upon as research or investment advice regarding any security in particular. The user of this information assumes the entire risk of any use made of the information provided herein.
Kevin Flanagan, Chris Gannatti, Rick Harper, Jeremy Schwartz, and Jeff Weniger are registered representatives of Foreside Fund Services, LLC.
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