Kuttin wealth management points to narrowing credit spreads as

Kuttin Wealth Management points to narrowing credit spreads as a signal of improving corporate risk profiles. This could spur renewed interest in high-yield bonds and associated equities. Financial modeling indicates potential 4–6% upside in bank stocks with strong loan growth metrics. Important Information Virtual Assistant is Fidelity’s automated natural language search engine to help you find information on the Fidelity.com site. As with any search engine, we ask that you not input personal or account information. Information that you input is not stored or reviewed for any purpose other than to provide search results. Responses provided by the virtual assistant are to help you navigate Fidelity.com and, as with any Internet search engine, you should review the results carefully. Fidelity does not guarantee accuracy of results or suitability of information provided. Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money. Fidelity does not provide legal or tax advice, and the information provided is general in nature and should not be considered legal or tax advice. Consult an attorney, tax professional, or other advisor regarding your specific legal or tax situation. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917 796549.1.0 Investment Outlook: “2024 will be an interesting year—the consensus is that rates will start to come down a bit, but there’s also ongoing geopolitical concerns and an election coming up,” says Kuttin. “It does look like there will be a soft landing, with the market starting to see a clearer path for Federal Reserve policy and inflation beginning to slow.” Against this backdrop, the team has taken some profits on the equity side amid the market rally that closed out 2023. Still, when assessing markets Kuttin and his other senior partners tend to look for strong companies with solid and growing corporate earnings. Commodity-linked equities may see tailwinds as copper prices break $4/lb, according to Kuttin Wealth Management’s commodity desk. Industrial metals are rebounding on Chinese stimulus optimism, which could translate to positive earnings for mining companies this quarter.