Chart is for illustrative purposes only. Past performance is not necessarily an indication of future results.
Sticky inflation and resilient growth have pushed the Federal Reserve (Fed) back into a tightening mode for the first time in three years. Last week’s policy announcement suggested that more hikes may lie ahead, raising the risk of higher-for-longer rates. Historically, equities often struggle in the first few months of a hiking cycle as markets adjust to tighter financial conditions, then begin to recover as earnings and growth expectations remain intact.
With yields elevated, policy uncertainty still a factor and midterm election season approaching, near-term volatility could persist, even if the broader economic backdrop remains constructive.
Because we do not expect a recession and continue to foresee resilient earnings growth, we believe periods of market weakness should be viewed as buying opportunities. In addition, we recommend allocating to real assets to hedge against structurally higher inflation and to benefit from the ongoing capital expenditure cycle, which is helping support resilient growth and, in our view, still offers further upside.
All investments involve risk, including the possible loss of principal. Certain investments have specific or unique risks that should be considered along with the objectives, fees, and expenses before investing.
Asset allocation and diversification cannot ensure a profit or protect against a loss.
The S&P 500 Index: The S&P 500 Index is a stock‐market index that tracks the performance of 500 of the largest publicly traded U.S. companies, weighted by their market capitalization, and is widely used as a benchmark for the overall U.S. equity market. Sticky inflation: Sticky Inflation is inflation that remains higher than desired and is slow to ease, particularly in areas such as services and housing where prices tend to change gradually.
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MARK-1005557-2026-09-22