Allspring Global Investments

What sectors are under appreciated but potentially poised for growth? Watch Ann Miletti’s Bloomberg interview to find out. (Interview starts at 49-minute mark). https://allsprg.co/4flQS2d #equities #investing This material is for educational purposes only and is not intended to provide investment advice or a recommendation.

Our equity teams see four themes gaining momentum in 2025: 👐 Breadth should continue to widen 🏷️ Value-focused sectors may continue to outperform 🔎 Investors are being compensated to move down in market cap ✈️ Emerging market investing shows potential Read our 2025 Outlook: A Matter of Perspective to learn more. https://allsprg.co/3ZKJfhj #AllspringOutlook #2025Outlook #investing #equities

“Active management can give you better potential as the market broadens out.” Ann Miletti explains why in her Quartz interview. https://allsprg.co/41qBYEO #equities #ActiveManagement #investing This material is for educational purposes only and is not intended to provide investment advice or a recommendation.

Last week CEO Joe Sullivan represented Allspring at the 15th Annual J.P. Morgan CEO Forum, as a panelist on “Asset Management [R]Evolution.” Joe participated alongside New York Life Investments CEO Naïm Abou-Jaoudé. Edward Squire, Head of FIG Investment Banking, EMEA at J.P. Morgan Private Bank, moderated the discussion. This conversation highlighted the key innovations and trends driving the evolution of asset management, reinforcing our commitment to put clients first in a rapidly changing industry. #WeAreAllspring 

The #FederalReserve made another cut—now, a pause? Read on for commentary from Matthias Scheiber. 👇 Today, the Federal Open Market Committee announced a widely expected cut of 25 basis points (bps; 100 bps equal 1.00%) in its key interest rate, the federal funds rate, lowering the rate to 4.25–4.50%. It was broadly welcomed as a sign of the Federal Reserve’s (Fed’s) willingness to bring inflation-adjusted yields down further. From here, however, the interest rate path is less clear, with no future cut expected before March 2025. Incoming growth and inflation data along with more details on fiscal stimulus will be the main determinants for future rate decisions. The U.S. inflation rate has stayed slightly elevated compared with the Fed’s 2.0% target level. While the Fed’s preferred measure of prices, the Personal Consumption Expenditures (PCE) Price Index, has been stable over the past several months, the core PCE Price Index (which excludes food and energy) has remained slightly elevated, at 2.8%. Capital goods prices are no longer a deflationary force, although some of the stickier services prices, like rents, have rolled over. Key data points we’re monitoring concern the robustness of the labor market—the key challenge for the U.S. economy moving forward. After a weaker October reading, monthly nonfarm payroll numbers recovered strongly in November and job openings have increased again. The unemployment rate picked up slightly in November, to 4.2%, though consumers’ real income has remained robust, benefiting from the latest inflation decline. Forward-looking U.S. growth indicators point to gradually increasing economic growth, toward around a 3% rate of real growth (real growth calculations provide the value of all goods and services an economy produced while accounting for price fluctuations). We expect the Fed to remain vigilant in monitoring inflation as the fight might not be over just yet. For 2025, the interest rate market currently expects the Fed to cut rates to somewhere between 3.75% and 4.00% over the course of the year. A lot will depend on how aggressive U.S. fiscal policy turns out to be. We continue to like #equities —especially the cheaper parts of the U.S. equity market and parts of international markets that benefit from further Chinese stimulus and aggressive central bank rate cuts. We expect the equity rally to broaden and believe that any relief from perceived looser monetary policy would likely support equity prices in the medium term. The outlook for higher-yielding bonds remains favorable as a U.S. recession looks unlikely. ---------- The Personal Consumption Expenditures (PCE) Price Index reflects changes in the prices of goods and services purchased by consumers in the U.S. It is part of the Personal Income and Outlays Report issued by the Bureau of Economic Analysis of the U.S. Department of Commerce. You cannot invest directly in an index.

How will Donald Trump’s return to office affect U.S. and global economies? George Bory shares his insight with NHK WORLD JAPAN. https://allsprg.co/49yMY52 #inflation #FederalReserve #tariffs This material is for educational purposes only and is not intended to provide investment advice or a recommendation.

Wondering what’s ahead for #FixedIncome in 2025? Here’s what our portfolio managers are watching and how they plan to make the most of upcoming opportunities. https://allsprg.co/3ZKJfhj #AllspringOutlook #2025Outlook

#RateCuts in 2025? Allspring’s Danny Sarnowski says it’s all about the data. https://allsprg.co/3ZKJfhj #FederalReserve #AllspringOutlook #2025Outlook

Read our December Market Risk Monitor to find out what’s on our Investment Analytics team’s watchlist for 2025. https://allsprg.co/3X5Wbxb 👇

Register now for our 2025 Outlook to discover ways investors can prepare their portfolios for 2025. https://allsprg.co/3ZN1ToQ #AllspringOutlook #2025Outlook