Federal Reserve Chair Jerome Powell is testifying for the second day before Congress as the US continues to grapple with inflationary pressures. Tocqueville Asset Management portfolio manager John Petrides and WisdomTree head of fixed income Strategy Kevin Flanagan join Catalysts to break down the market reaction to Powell's comments and how investors should best position their portfolios amid the current economic backdrop.
So that's a really good sign, I think from that perspective and those that are still convinced the fed is going to raise rates that's off the table for at least the next year. And I think Powell pretty much laid it out yesterday that the risks are now balanced and that he is seeing some cooling in activity in the labor markets.
So I if the numbers continue to come in as they have you open the door for a September rate cut, but remember this isn't gonna be like the rate hike cycle.Which of course, what else would we talk about if we didn't get to digest this and dissected every single day? We increased it in January of 2023 and we still maintain a high level position of gold for our clients.
So Kevin, I want to go to you on that particularly in relation to what we're seeing heading into the election come November 5th, we saw that yields fell off the back of the debate.I, I do think, you know, from time to time you could see it on a daily basis in terms of trading activity. You see leverage ratios going up, you know, we had the, the game stop meme craze, get back in the headlines again.
Everybody knows the whole world for the past seven years has been in US large cap tech growth, right?So I think there are value there's value to be had in other parts of the market to compensate for a position that basically everybody owns.