Schwab Network: Santa Claus Rally Coming; 3 Rate Cuts Next Year

Summary

Head of Research and Quantitative Strategies Mike Dickson highlighted the likelihood of a December Federal Reserve rate cut in a recent interview with Schwab Network, where he cited steady economic growth and modest inflation progress as supporting cases for a 25 basis point cut. Given favorable economic conditions and valuation gaps, he emphasized potential opportunities in small and mid-cap stocks and high-yield credit. Looking ahead, Mike expects a Santa Claus rally to close the year strong.

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