DF Market Update - October 2024

The market update itself remains positive across the board, with large cap growth leading the pack as a trend continuation. Despite the rate cuts small caps have yet to participate in the upside on the same magnitude.

Some positive developments out of China, combined with a weaker US Dollar for the month, have led to some gains in the Asia Pacific and EM regions, being the best performers on the 1-month and 3-month time-frames. Somewhat left-field, Utilities are now the best performing sector on a YTD basis for the S&P500 which can be somewhat explained by the recent rate cut of 50 bps by the Fed coupled with the increased energy demands by big-tech for the continued rollout of data centres to keep the AI narrative alive.

The best performers for last month was GRID (clean energy/utilities/electrical grid) and FTGC (commodities), with the latter’s performance being explained by an uptick in Crude Oil due to middle east tensions but also a stronger Chinese fiscal/monetary response.

Last but not least the yield curve; it continues to un-invert (see below) with the 2Y/10Y spread finally in the positive territory with all but the shortest of paper still at elevated levels which is likely to come down as a function of further Fed rate cuts.

DISCLOSURES

DUNHILL FINANCIAL, LLC IS A REGISTERED INVESTMENT ADVISER. THE INFORMATION PRESENTED IS FOR EDUCATIONAL PURPOSES ONLY AND DOES NOT INTEND TO MAKE AN OFFER OR SOLICITATION FOR THE SALE OR PURCHASE OF ANY SPECIFIC SECURITIES, INVESTMENTS, OR INVESTMENT STRATEGIES. IT DOES NOT PRESENT THE FULL RANGE OF OPTIONS AVAILABLE TO YOU. INVESTMENTS INVOLVE RISK AND UNLESS OTHERWISE STATED, ARE NOT GUARANTEED. BE SURE TO FIRST CONSULT WITH A QUALIFIED FINANCIAL ADVISER AND/OR TAX PROFESSIONAL BEFORE IMPLEMENTING ANY STRATEGY DISCUSSED HEREIN.