The S&P 500 has been buoyant mainly because of A.I. fever, while bonds are having another mediocre year. But as an investor, our columnist is staying the course.
The Federal Reserve has disappointed investors this year, but no matter. The markets have adjusted.
Even without any interest rate cuts so far in 2024 — and with the likelihood of just one meager rate reduction by the end of the year — the stock market has been purring along. That’s quite an achievement, given the expectation in January that the Fed would trim rates six or seven times in 2024 — and that interest rates throughout the economy would be much lower by now.