Tyler Lewis, a portfolio manager in Brown Advisory's Boston office, has a discussion on the market outlook with Taylor Graff, Head of Asset Allocation Research, and Sid Ahl, Co-Chief Investment Officer for Private Client, Endowments and Foundations. They reflect on the market's performance in 2024, noting that U.S. stocks saw significant returns for the second consecutive year, fueled by strong earnings growth and productivity, particularly in technology. Despite these gains, U.S. large cap stocks are now considered expensive, and future returns are closer to those of bonds. They also discuss the impact of tariffs, inflation, and interest rates on the market, highlighting the recent uncertainties and their potential implications for economic growth and inflation. They also touch on macroeconomic factors with Taylor addressing the Federal Reserve’s interest rate policies and their effects while Sid speaks to the equities market and the potential for better returns in international and small-cap stocks. The chat concludes with an overview of private market opportunities, particularly in Japan, where we believe corporate reforms and undervaluation present attractive investment prospects.
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