We think about asset allocation as a 2-step process. First, identify the biggest risks and the opportunities. Second, incorporate assets into the portfolio that will buffer the risk and take advantage of the opportunity.

At the start of this year, the Fed had hinted at 5-7 Interest Rate Cuts…and so far we received just 1. The Federal Reserve Board Chairman, Jerome Powell, after previously suggesting there we could see several rate cuts this year, only recently authorized one rate reduction of 0.50%.