In this episode, Verdence Chief Investment Officer Megan Horneman breaks down the latest Federal Reserve decision to cut interest rates by 25 basis points, bringing them to a target range of 4.50% to 4.75%. 

Megan discusses the Fed's shift in language regarding inflation, highlighting their updated focus on "progress" rather than "gaining confidence" in achieving their 2% inflation target. This subtle change has raised some eyebrows, especially as certain inflation metrics remain sticky. The Fed emphasized a “meeting-by-meeting” approach, with more data anticipated by December that could sway future rate decisions.

Also on the docket, discussing how markets have reacted: a rally in bond markets and a minor uptick in equity markets, with no major surprises given the anticipated rate cut. She notes the ongoing concerns around elevated geopolitical risks, especially the potential impact on oil prices and, consequently, inflation. The Fed’s cautious stance, alongside a watchful eye on fiscal policy's sustainability, underlines the balancing act between employment and inflation in today’s economy. Subscribe for ongoing insights and visit MarketsWithMegan.fm for past episodes.

https://youtu.be/5d91gVwq0dE

Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks
or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any
discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the co...

"The Results Are In!" In this episode, Megan Horneman, Verdence CIO, dives into the market's response to the recent presidential election, where Donald Trump was elected as the 47th President of the United States. As the Republican Party gained control of the Senate and is on track to secure the House, markets responded with a historic rally, with the Dow Jones surging over 1,000 points. Specific sectors are benefiting from these political shifts, such as financials, industrials, and energy, as investors anticipate regulatory rollbacks and policies favoring economic growth. Drawing parallels to the 2016 election, Megan analyzes how small-cap stocks and other domestically focused companies are reacting positively to Trump’s anticipated economic policies while the bond market reflects inflation concerns due to potential tariff-related policies.

Get a quick analysis of what this political landscape could mean for the Federal Reserve's approach, particularly with its expected interest rate cut. The discussion covers key points around the stability of the Senate, the likely preservation of the filibuster, and how this could influence President Trump’s appointments to federal agencies. With early signs of optimism balanced by caution around inflation and consumer challenges, the episode underscores the importance of ongoing market monitoring as these policy directions unfold. Join us as we dissect the election’s impact on the markets and provide insights on how the markets may navigate this new administration.

https://youtu.be/IyNbQB2zTy0

Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks
or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any
discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the co...

Are rising inflation rates set to challenge the recent market rally? In our latest update, we unpack September's Core PCE reading, showing the largest monthly increase since April, reflecting pressures in service costs, including healthcare, and unexpected growth in goods prices like clothing and vehicles. With Core PCE up 2.7% over last year, just above forecasts, we examine the key factors influencing inflation and their potential impact on markets.

We also address concerning trends in personal savings and rising consumer credit use—behaviors that could add complexity to the Fed's path on interest rates. Hear how these dynamics have affected equity markets and bond yields, providing a balanced perspective on the economic forces at play. Stay informed with our latest market insights, and don’t forget to explore past episodes on our website MarketswithMegan.FM.

https://youtu.be/HmZ32DAfFDY

Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks
or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any
discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the co...

What if the backbone of our economy is powered by consumers spending on borrowed time? Today, Megan reviews the third-quarter GDP report, revealing how a modest 2.8% growth rate is largely driven by relentless consumer spending and federal government contributions. Despite the growth coming in slightly below expectations, the consumer's role in bolstering the economy is undeniable. She examine the implications of this consumer-driven expansion, particularly as individuals turn to credit in maintaining their spending habits. Our discussion also touches on the implications for Federal Reserve policies, especially with the core PCE price index edging closer to the Fed's inflation target.

In dissecting these economic trends, Megan considers what this means for future interest rate decisions. Should the Federal Reserve adopt a cautious stance with rate cuts, given the robust consumer activity? Will continued spending jeopardize the progress made in containing inflation? Join us in this episode as we analyze these crucial questions. Stay informed, share this episode with those who would benefit from our insights.

https://youtu.be/2C-GhDCr4rg

Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks
or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any
discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the co...

What if the recent surge in consumer confidence defies your expectations? Join us as we unpack the latest report showing an unexpected rise to levels not seen since December 2022. Hear why optimism in the job market could be a game-changer, even as it challenges recent employment data. We explore the intricate balance between consumer sentiments and the real economic indicators, all while keeping a keen eye on inflation concerns and the public's financial stability. Our discussion offers a look at how these complex dynamics might play out in the coming months, especially within the context of Federal Reserve's interest rate strategies.

As bond yields climb and market reactions vary, we navigate the implications of these mixed signals for future economic policies. The conversation also anticipates the release of new economic data, such as the advanced GDP reading, and reflects on the inherent volatility of consumer confidence reports. This episode is packed with insights into the ever-changing economic landscape, providing a thorough understanding of what these shifts mean for both consumers and investors. Stay informed, share this exploration with those who crave economic clarity, and don't forget to subscribe for more real-time analyses.

https://youtu.be/j6aogvdh2GI

Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks
or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any
discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the co...

What's behind the market's current turbulence? Megan Horneman, Verdence CIO, looks at the impact of regional bank instability, sparked by New York Community Bank Corp's recent earnings revelation. Imagine the anxiety rippling through investors as the bank reports no profit potential until 2026. Could this be a harbinger of more widespread financial woes? Listen to see how these unsettling developments may push investors to reevaluate their strategies and consider taking profits off the table, even in the face of recent Fed interest rate cuts aimed at stabilizing the economic landscape.

Let's look at the unexpected rise in consumer confidence and its potential to ignite inflation risks. With consumer spending on the rise, are we on the brink of an inflation surge despite efforts to suppress it? Explore the ripple effects of higher interest rates on equity markets and what that means for investors navigating these uncertain waters. As we prepare for next week's discussions, we also preview the economic calendar and upcoming events that could impact the presidential and congressional elections. Subscribe, share, and stay informed as we continue to unravel these complex issues.

https://youtu.be/_AhUJeeUBt4

Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks
or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any
discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the co...

In this episode of Markets with Megan, CIO Megan Horneman discusses the latest developments in the third-quarter earnings season for the S&P 500. With financials kicking off the reporting, Megan highlights key trends such as banks' mixed decisions on loan loss reserves and the implications for consumer debt—especially the rise in credit card usage amid soaring interest rates.

She breaks down earnings growth expectations, noting a projected 3% year-over-year increase, but stresses that the gains are heavily concentrated in the "Magnificent Seven" stocks. Without them, the overall growth is nearly flat. Megan also flags concerns about overly optimistic earnings forecasts for 2024-2025, potentially leading to further volatility as global economic forecasts are revised downward.

Understand how inflation and potential Federal Reserve rate cuts shape corporate strategies and market expectations. Whether you're a seasoned investor or just keeping tabs on the market, this episode provides actionable insights into what could shape the market's performance in the coming weeks. Tune in to stay ahead of these developments and what they mean for your investments.

https://youtu.be/_sFQdp0ZguM

Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks
or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any
discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the co...

In this episode of "Markets with Megan," the focus is on the significant role tech giants are playing in the current bull market, with the S&P 500 surging nearly 70% since October 2022. A striking 96% of the total returns come from just five companies—NVIDIA, Meta, Broadcom, Microsoft, and Apple—demonstrating the uneven growth across market sectors. 

The driving forces behind this bull market are price-to-earnings (PE) expansion, which accounts for 75% of returns rather than actual earnings growth. This heavy reliance on PE expansion raises questions about the sustainability of this two-year bull run as it approaches its third year, when returns tend to slow historically.

Megan also addresses challenges that could impact future market performance, such as the Federal Reserve's tightening monetary policy, the upcoming presidential election, and geopolitical tensions. With economic forecasts predicting slower growth as we move into 2025, investors face a more complex outlook. 

Stay informed and adaptable.  Subscribe and share.

https://youtu.be/xuJydAqKYaw

Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks
or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any
discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the co...

Could the rising tide of inflation sink consumer confidence for good? Join us as we dissect the latest economic indicators, including the Consumer Price Index and Producer Price Index, and uncover why the Federal Reserve may have a tough road ahead dealing with sticky inflation in the service sector and surging food prices. We break down what the numbers reveal and explore the implications for future monetary policy. With inflation expectations creeping upward and consumers feeling the pinch, understanding these trends could be crucial for navigating the current economic climate.

Despite an optimistic stock market, consumer confidence takes a hit with a weaker-than-expected outlook for October. We explore the disconnect between market performance and consumer sentiment, and dive into the upcoming economic data releases, including the pivotal retail sales report. As we anticipate a week filled with critical insights, stay informed with our comprehensive analysis that aims to keep you ahead in understanding what these shifts mean for your financial future.

https://youtu.be/e_SHW_GVjFc

Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks
or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any
discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the co...

In the latest episode of Markets with Megan, the discussion centers around the surprising rise in inflation as revealed by September’s Consumer Price Index (CPI) data. Both headline and core inflation exceeded expectations, with core inflation hitting 3.3%, up from the projected 3.2%. Despite falling gasoline prices, the cost of services, food, and goods surged, with service inflation proving especially persistent at 4.7% year-over-year. This poses significant challenges for the Federal Reserve, which now faces tough decisions regarding monetary policy. Investors are also grappling with the consequences, as equity markets have experienced pressure and long-term yields have increased, signaling growing concern over inflationary pressures.

The episode also highlights the broader economic implications of rising inflation, including the modest 1.5% rise in real average hourly earnings, which contrasts sharply with the 4.7% increase in service costs. Consumers are feeling the strain, facing higher prices in essential areas like food, insurance, and medical care. As the Federal Reserve prepares for its next meeting, with more data on inflation and employment expected, it is important to stay informed.

https://youtu.be/_pfAfRjyM2k

Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks
or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any
discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the co...