Today on the show, we welcome Director of Quantitative Market Strategy Denise Chisholm. She brings her unique insights and perspectives on the sectors to watch in global markets. Denise dives into the yield curve inversion and assures that it does not necessarily indicate an immediate recession as proven by the inversion in 1966. It is more the steepening of the inversion that causes issues for the equity market than the inversion itself, and half of the time there comes a recalibration of monetary policy. The current 6-month run rate of the PCE deflator has dropped to below 2%, and the price level remains 20% higher than it was before the start of Covid-19. Inflation has slowed down to the measure the Federal Reserve prefers.Denise discusses the current rate drops and how that could lead to risk assets from more economically sensitive sectors improving.

Recorded on February 20, 2024.

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