Denise Chisholm's sector and factor perspectives – October 31, 2024

Today on the show, Director of Quantitative Market Strategy Denise Chisholm joins us to discusses the economic drivers that matter most to investors right now – growth, inflation, and sector-specific opportunities. Denise highlights that while inflation does impact interest rates, it’s the growth narrative that ultimately drives equity markets and investor confidence. She explains that if rates are high, but growth remains robust, cuts are less likely; however, if growth lags, rate cuts could be on the horizon. On a consumer front, Denise talks about how inflation has dampened real wage growth, impacting purchasing power and sentiment. She points out, however, that positive income growth has recently returned, hinting that consumer confidence could gradually strengthen. Denise also advises to focus on long-term drivers, like earnings and income growth, rather than getting caught up in election-related volatility. With low valuations and resilient consumer spending, small-cap stocks in consumer discretionary may offer significant opportunities as interest rates stabilize.

This podcast was recorded on October 31^st, 2024.

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