In today’s episode of THE FINANCIAL COMMUTE, host Chris Galeski invites Managing Director of Investments Sasan Faiz to discuss the current economic landscape.

The global economy is uncertain due to the war happening in the Middle East, rising interest rates driven by the Fed’s efforts to lower inflation, and the dysfunction in the U.S. Congress related to budget resolutions. The 10-year U.S. Treasury yield reaching a 16-year high of 5% also magnifies the risk that the higher rates environment poses to the economy. Furthermore, U.S. consumers and corporations are facing higher borrowing costs, which dampens economic activity. 

According to Sasan, earnings expectations for mega-cap companies may already be priced into the market, with interest rates and geopolitical factors acting as the main forces driving current market dynamics. He encourages listeners to diversify their portfolios and consider gold amid this uncertain environment. Private credit and lending strategies may also be attractive as they offer potential returns comparable to equities. 

 Disclosure: Information presented herein is for discussion and illustrative purposes only. The views and opinions expressed by the speakers are as of the date of the recording and are subject to change. These views are not intended as a recommendation to buy or sell any securities, and should not be relied on as financial, tax or legal advice. You should consult with your financial, legal, and tax professionals before implementing any transactions and/or strategies concerning your finances.