As rate cuts slow, bond markets are nervous while the equity markets may fall as they adjust to lower earnings
GAM Diversity has made small but consistent gains throughout the year to date and is up nearly 4%. We remain cautiously positioned as we see a difficult time ahead. We think equity markets will fall as they adjust to lower earnings while bond markets are nervous as they start seeing an end to the aggressive rate cuts. Despite the equity market falls year to date, the multiples that each of the major markets continue to trade on, are at the high end of the normal ranges. The corrections have been dramatic in the tech sector, as highlighted by the over 60% correction in the Nasdaq from it...
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