Barbara Reinhard, CFA, Head of Asset Allocation
For the rest of the year we expect equities to outperform fixed income. We believe stocks can gain on expectations of high, single-digit earnings growth for the next 12 months, as well as a plausible chance of tax cuts from Washington.
Matt Toms, CFA, CIO, Fixed Income
The Federal Reserve will begin reducing its holdings of Treasury and agency mortgage securities in October. Reduction will start at $10 billion per month, gradually rising to a maximum of $30 billion. The Fed is keeping the door open for a December interest rate hike.