RKL expert advisors Brandon Adams, Dong Choe, and Gabe Stetler break down the current state of the market in our October edition of Market Reflections. There is a generally supportive market backdrop despite recent large-cap volatility. The team expects continued economic growth, low unemployment, and no near-term recession, with improving mid- and small-cap earnings. Inflation remains above the Fed’s target, but long-term expectations appear anchored near 2%, reducing the risk of a 2022-style inflation surge. Rising U.S. bond yields are viewed primarily as a reflection of stronger growth expectations, rather than credit concerns. The team believes stocks and bonds are signaling a consistent, constructive outlook, and that higher bond yields create improved opportunities for diversified, neutral-duration portfolios.
