Be careful what you wish for

lnvestors betting that interest-rate cuts in 2024 will boost stock valuations by easing company debt burdens and unlocking household spending may want to curb their enthusiasm. Speaking with Alice Uribe from The Wall Street Journal, Talaria Co-CIO Hugh Selby-Smith said lower interest rates are typically accompanied by a fall in corporate profitability.

Hugh cautioned investors that Selby-Smith cautioned that some companies could face issues with refinancing their debt, even as rates come down.

“Just be very wary of leverage. It’s the absolute level of debt that we would highlight to people,” he said.

Read the full article below including commentary on Talaria’s exposure to Japan.