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Navigating the Crossroads

As we look ahead to the evolving economic landscape, the upcoming rate cuts and signs of a stabilizing economy offer exciting possibilities for investors.

With the Federal Reserve signaling a shift, the path forward is filled with opportunities to capitalize on improving market conditions. The potential for lower borrowing costs and a more favorable investment environment is on the horizon, setting the stage for strategic moves that could enhance your portfolio's growth and resilience.

There's a sense of optimism as we prepare to navigate the next phase, and we're here to ensure you make the most of these promising developments.

Market Pulse

Essential Financial Indicators at a Glance

As of market close Aug 30, 2024 (MoM change)

US Ten Year Treasury Yield: 3.9% (-0.2%)

SOFR (Secured Overnight Financing Rate): 5.33% (no change)

10 Year Treasury Minus 2 Year Treasury Spread: 0% (+0.2%)

30-Year Fannie Mae & Freddie Mac Rates: 6.35% (-0.43%)

S&P 500: $5,648.40 (+$139.53)

NYSE Steel Index: $1,978.08 (-$81.61)

Spot Price Gold: $2,516.40/oz (+$79.80)

Crude Oil Price: $73.65 (-$3.82)

Bitcoin: $58,948.04 (-$6,373.11)

Ethereum: $2,508.82 (-$726.97)

Rates listed are estimates and may not reflect actual rates depending on term, sponsor location, and other factors.

National Market News

Rate Cut on the Horizon

At the Jackson Hole Economic Symposium, Federal Reserve Chair Jerome Powell delivered a decisive message on the Fed’s strategy moving forward.

"The time has come for policy to adjust," he stated. "The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks."

The consumer price index, a key inflation gauge, rose 2.9% in July from a year ago thanks to the Fed's aggressive monetary tightening. However, Powell stressed the importance of learning from recent economic disruptions.

"The limits of our knowledge—so clearly evident during the pandemic—demand humility and a questioning spirit focused on learning lessons from the past and applying them flexibly to our current challenges."

The latest economic data presents a mixed yet insightful view of the U.S. economy as we head towards Q4. Consumer spending remains strong, with a 0.5% increase in July, signaling robust domestic demand and helping to moderate inflation. While inflation still exceeds the Fed's 2% target, its slowing pace suggests that households are maintaining confidence despite ongoing uncertainties.

The labor market, on the other hand, tells a more complex story. The unemployment rate rose to 4.3% in July, the highest in nearly three years, even as layoffs remain low and wage growth steady. Additionally, the Bureau of Labor Statistics revised its March 2024 employment estimates downward by 818,000 jobs, indicating that employment growth may have been overstated.

Will the Fed's Next Move Steer the Economy or Shift the Tide?

As the Fed approaches its September 17th-18th meetings, all eyes are on how this anticipated rate cut will shape the next phase of the economic recovery.

Local Market News

From MSA's we are Actively Evaluating Investment Opportunities

Kansas City’s East Side is poised for a significant transformation with the redevelopment of Parade Park Homes, a historic Black-owned housing cooperative.

A digital rendering shows a potential design for the new Parade Park Homes development on Kansas City’s East Side.

The site will replace 510 existing units with 1,065 new rental units across 20 buildings. Of these, 470 units will be designated as affordable housing. This ambitious project, designed to enhance both the community and the local economy, will be rolled out in three phases. The first phase of construction is set to begin this spring, with initial units expected by 2028 and full completion, including a mix of affordable housing, market-rate rentals, and specialized units, slated for 2030.

Parade Park Homes is located on the north edge of the Jazz District, southeast of the downtown loop.

This project is a testament to Kansas City’s ongoing commitment to growth and revitalization, with a focus on preserving its rich history while adapting to modern needs. The City's proactive approach to urban development and community enhancement is setting the stage for sustained success, making it a continually exciting market to watch.

The Path Forward

Opportunities Exist for Those Who Are Prepared

Looking ahead, the opportunities for strategic investments continue to grow.

The upcoming jobs report, set to be released this Friday, will be crucial in shaping the Federal Reserve's decisions during their September meetings. While a 25 basis point rate cut seems almost certain, the Fed will be closely watching the labor market data.

The potential for further rate cuts presents an exciting landscape for us as we continue to navigate and capitalize on these developments. Our focus remains on identifying opportunities that align with the evolving market conditions, ensuring that your investments are positioned for both stability and growth.

We’re committed to keeping you informed and ready to seize the moment as opportunities arise.

Thank you for your continued trust and partnership.

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