Spiced pumpkin lattes and warm fires sound like a far away dream to those of us in Southern California going through our traditional end of summer heat wave. We hope everyone had a wonderful summer! A couple of weeks ago, our Purus Team was able to get away and spend an afternoon at the beach, it’s always so nice to spend some time outside of work and get the families together.
The markets have performed nicely since our last newsletter. Volatility is now, as we assumed, on the rise. September is traditionally a soft month for the market and so far, it has not disappointed. Last month Jerome Powell’s comments gave the markets a nice boost with his more dovish tone, and we expect a rate cut later this month with an additional cut later in the year. While this may not have a large effect on long-term rates, we believe, as do many, it’s a move in the positive direction.
As always, if there is anything you would like to discuss, please reach out, we’d love to hear from you!
"The Federal Reserve notes the balance of risks to the U.S. economy may warrant a shift in policy stance- in other words, a rate cute. Today's much-anticipated speech by Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium did not disappoint markets, nor did the Fed's rollout of its revised monetary policy framework surprise Fed watchers. The central bank appears on track to lower its policy rate in the near term, albeit with a cautious approach. Over the longer term, the Fed reaffirmed its commitment to its dual mandate while introducing only nuanced clarifications to its monetary policy framework."
"Why do people keep asking me whether I think 100 unarmed humans could defeat a fully grown silverback gorilla in a fight to the death? I have so many follow-up questions. First: Do I get to choose the other 99 humans? Second: Are there any rules, or is this an old-school World Wrestling Federation no-holds barred scenario? Third: Why would I want to provoke a typically calm and gentle animal?"
"For much of the past three years, AI has been the story in global equity markets. Far more than just capturing headlines, AI-related stocks - especially the megacap hyperscalers - have been responsible for a large portion of aggregate market returns over this period. Despite this remarkable run - and as evidenced by a brief early 2025 dip - many investors are trying to decipher something of a paradox within the AI story: How can it be a long-deration theme playing out over a multi-decade horizon, while also advancing at such a rapid pace that the goal posts seemingly move every month?"
