Read the highlights of this week’s commentary from Helios:
- The S&P 500 hit another record this week, as Federal Reserve officials left the federal funds rate unchanged and maintained their outlook for three quarter-point cuts this year. The central bank’s updated projections show officials expect just three cuts in 2025, as compared to four in their previous projection. Fed officials still have six more meetings this year to implement the three rate cuts, which are expected to begin in June.
- An analysis by Morningstar found that the 60/40 portfolio mix rebounded with an 18% gain last year after a poor performance in 2022. Their analysis showed that this classic mix often outperforms more diversified portfolios over long periods, providing better risk-adjusted returns despite recent trends of stocks and bonds moving more in sync.
- The National Association of Realtors (NAR) settled a lawsuit for $418M over allegations of inflating agent commissions in home listings and indirectly setting a norm for 5% to 6% commission rates. Under the new arrangement proposed by the settlement, buyers and sellers will individually negotiate their agents’ fees, fostering greater transparency and control over real estate transactions.
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