Weekly Client Letter – April 15, 2024

Following a higher-than-expected consumer price index report last Wednesday, the Federal Reserve may reconsider anticipated rate cuts, potentially maintaining higher interest rates for longer than previously expected. This scenario could put pressure on stock market valuations and bond prices.

Since the future market direction is unpredictable, we are prepared for any scenario. Our RiskFirst® approach is designed to participate in market growth phases while navigating through the potential market dips that inevitably come.

Inflation Stuck Above Fed Target

Weekly Client Letter - April 8, 2024
Source: Bloomberg, Redwood. Data as of 4/11/2024. Date Range from 1/19/2019 – 3/31/2024.
  • We believe the preservation of capital is key to consistent, long-term investment success.
  • Our investment approach is grounded in economic theory and backed by quantitative analysis.
  • Managing drawdown risk is a pillar from which we build our portfolios.

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