QuantStreet October 2024 Investor Letter: The Fed Finally Starts Easing

The major market event in September was the Fed's 50 basis point rate cut following the September 18th Federal Open Market Committee meeting. There was broad consensus the Fed would cut rates, though the 50 basis points (as opposed to 25) and perhaps the tone of Jay Powell's press conference surprised to the upside, at least based on the price action of September 19th.

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Many market segments did well, especially utilities (which we discuss below) and gold (which has historically done well during Fed easing cycles, as we've written in the past). International ex-U.S. stocks (VXUS) also had a good month, largely on the back of a large stimulus policy in China (more below). The month's laggards were financials, healthcare, and, most notably, energy stocks.

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