Knights of Columbus AA's CIO on Markets & Strategy

The video discusses market trends, focusing on strategic asset allocation and tactical tilts. It highlights the performance of small cap and international equities, and the impact of interest rates on tech stock valuations. The discussion also covers inflation trends, supply chain issues, and energy prices. The potential influence of political events, such as the US midterm elections, on Federal Reserve actions is also examined.

What was the recommended strategy for clients who wanted to be more tactical last year?

• Underweight large-cap US stocks

• Overweight longer-dated bonds

• Underweight small-cap stocks

• Overweight international equities

Why might some tech stocks face challenges in justifying their valuations?

• Due to decreasing interest rates

• Due to a lack of innovation

• As a result of rising interest rates

• Because of increasing competition

What does Neel Kashkari suggest about the future inflation environment?

• The Fed will not be able to control inflation

• Inflation will stabilize at current levels

• The economy will revert to a low inflation regime

• Inflation will continue to rise indefinitely

What is one reason the Fed might act more quickly regarding interest rates?

• To influence the upcoming elections

• To avoid being part of the political narrative

• To support the current administration

• To increase inflation

How might the outcome of the US midterm elections impact the market?

• A split House and Senate could lead to gridlock

• A unified government will always boost the market

• The market prefers a single-party government

• Elections have no impact on the market