{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Beyond Markets","title":"The Week in Markets: Looking beyond the expected Fed rate cut","html":"","width":"100%","height":180,"duration":539,"description":"The US Federal Reserve resumed its rate cut cycle last week with a widely expected 25bp rate cut. Julius Baer expects four further rate cuts through March 2026, pausing at 3.25%, while the markets are pricing in slightly more aggressive easing. Against a backdrop of rapidly falling short-term rates and rising re-investment risk, 5-7 year bonds emerge as the sweet spot – offering a balance of yield and volatility amid a steepening curve. In credit markets, the tight spreads between corporates and Treasuries aren’t just a sign of strong corporate demand, but also reflect weakening Treasury appeal. When benchmarked against swaps, the implied corporate credit spreads appear more normal, supporting continued inflows into investment-grade corporate bonds. In equities, the rally in lower-quality and non-profitable tech stocks suggests that the market has been expecting and pricing in looser monetary policy conditions. However, a reversal may be due, and it may be time for quality stocks to outperform again. Notably, despite strong gains, valuations of the Magnificent 7 stocks remain below prior bubble peaks. This episode is presented by Richard Tang, Head of Research Hong Kong at Julius Baer.","thumbnail_url":"https://img.transistorcdn.com/11BnEfZU7rka4GVHoUpqhWArVzb8RoTTrwhLaXT0-wM/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS9zaG93/LzE5NzI2LzE2MTY1/NzYyNDItYXJ0d29y/ay5qcGc.webp","thumbnail_width":300,"thumbnail_height":300}