While the Fed is poised to begin interest rate cuts next week, investors are concerned about the economy and whether we will have a soft landing. “Right now we are still doing alright, and if the Fed can mildly reduce rates and jobs growth continues, then we need to start looking more closely at earnings growth,” said Eric Lynch, managing director at Scharf Investments during a recent appearance on Yahoo Finance. We saw broad-based earnings growth in Q2 outside of tech. So far in Q3, we’re seeing negative returns for the IT sector and other sectors that were laggards a year ago now becoming leaders with real estate, consumer staples, and health care delivering positive returns. “It’s really a good time to broaden out your portfolio without a lot of risk as these are defensive sectors.” Eric’s interview begins at the 3:19 mark in the link below.

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https://finance.yahoo.com/video/interest-rate-cuts-personal-finances-173911234.html?guccounter=1