A rally, a recession?, AI and the Feds.
Most asset classes posted positive returns through the first half of the year. In the second quarter, fixed income gave back some of the gains from the start of the year while more risky and growth-oriented names continued to climb.
The market has thus-far staved off a recession - many were forecasting a recession in early 2023, but it has yet to materialize. And, given that a recession typically involves two consecutive quarters of negative GDP, by definition,we're probably looking at the soonest of early- to mid-2024 given the current estimates for Q1 and Q2 2023 GDP growth.
The yield curve continues to be inverted along many measures, meaning that short-term rates are higher than longer-term rates, often a result of heightened risks in the short-term. What happens next with interest rates?
Read on as we delve into these topics and Artificial Intelligence (AI). What's all the buzz about?