William Dinning

Trump’s policies since his inauguration threaten growth, but tariffs in particular risk increasing inflation expectations. The good news is that so far inflation expectations remain anchored. This means the Federal Reserve will be able to cut interest rates (which the market expects them to do three times in 2025) if growth is indeed slowing significantly.

There is also good news in that investor sentiment has fallen to levels that have previously been profitable buying opportunities. So, we have not changed our asset allocation. We remain with a small overweight of equities and underweight of bonds

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