September’s Fed rate cut signals economic weakness

“The weakness we are seeing now is not unusual and suggests investors should brace for a prolonged adjustment before conditions improve,”

Chad recommends short-duration assets, real assets and strong balance sheets to ward off tough times ahead.

Following the US Federal Reserve’s first rate cut since December and as discussions heat up around additional cuts, he has advised investors to consider what’s driving the pivot and how it might impact their portfolios.

“If rate cuts are driven by weakening economic momentum, financial system stress or policy intervention rather than economic strength, the broader negative implications are likely to outweigh the benefits of lower rates,” Padowitz said.