Weekly Market Commentary 10-27-25

"Late Cycle Economy and Labor Market Risks”
See what we have to say about the following:

 

 

 

• Late Cycle Economy and Labor Market Risks:
  The U.S. labor market is slowing toward stall speed, increasing recession risks as job growth fails to keep pace with population growth.

 

• Stock Valuations Near Dotcom Boom Peaks:
  Stock valuations are approaching levels last seen during the dotcom boom, suggesting future equity returns may be modest.

 

• Surging Margin Balances and Fed Rate Cut Expectations:
  Margin debt and market leverage have surged, while expectations for multiple Fed rate cuts create uncertainty for bond investors.

 

• STAAC Commentary and Asset Allocation Insights:
  STAAC maintains a neutral stance on equities and core bonds, favoring growth sectors and mortgage-backed securities while advising caution amid market optimism.