What to Take Away from the Fed\u2019s \u201cHawkish Cut\u201d<\/strong><\/a> \u2013 <\/strong>As expected, the Federal Reserve delivered another quarter-point rate cut, pulling the benchmark fed funds rate down to a range of 3.50% to 3.75%. Markets had this move penciled-in for weeks, so what matters from this meeting is rates\u2019 future path. Inflation progress looks steady (not perfect, not re-accelerating), and the labor market has cooled without cracking, which gave officials an opening to cut but also made the case for being in no rush to cut more, a position that branded this latest move as a \u201chawkish cut.\u201d In our view, a rate cut certainly does not hurt, particularly given the flat yield curve as seen in the chart below. A less-flat curve can support bank lending and drive economic activity in the process.1<\/sup><\/a><\/p>\n\n\n\n 3-month \/ 10-year U.S. Treasury Bond Yield Curve<\/em><\/strong><\/p>\n\n\n\n Essential Strategies for Navigating Stock Market Volatility<\/a><\/u><\/strong><\/p>\n\n\n\n Market fluctuations can make investors uneasy, but waiting for stability could lead to missed opportunities. Volatility can offer unexpected advantages; it\u2019s just important to recognize how to leverage it.<\/p>\n\n\n\n To get more insights, all readers have access to our guide, \u201cUsing Market Volatility to Your Advantage<\/a><\/u><\/em><\/strong>\u201d, which offers our expert viewpoint on navigating a volatile market, including:<\/p>\n\n\n\n If you have $500,000+ to invest and want deeper insights into how volatile markets can offer potential benefits for strong returns, download our free\u00a0Using Market Volatility to Your Advantage3<\/sup><\/em><\/strong><\/a> guide today.<\/p>\n\n\n\n But we\u2019d also stress that a quarter-point rate cut is not likely to catalyze an already healthy credit market. Even before this meeting, loan growth was trending in a positive direction, and corporate results kept beating the year\u2019s early recession narratives. If the curve keeps inching toward normal and credit keeps flowing, the environment remains broadly supportive. That\u2019s meaningful context for investors.<\/a><\/p>\n\n\n\n Taking Stock of Global Economic Health from Purchasing Managers\u2019 Indexes (PMIs)<\/strong><\/a>\u2013 <\/strong>Purchasing managers\u2019 indexes are useful indicators because they\u2019re broad surveys of large firms in services and manufacturing, which can give market watchers a read on how CEOs and other executives are gauging activity and prices. In the US, November\u2019s S&P Global services PMI stayed comfortably above 50, signaling most firms saw activity expand even as the reading eased a touch to 54.1. ISM\u2019s older survey told a similar story, with services rising to 52.6, with new orders still in expansion. Employment remained sub-50 for a sixth straight month, but the contraction moderated, consistent with a labor market that has cooled without cracking. Manufacturing is the soft spot, as it has been for years. S&P\u2019s US manufacturing gauge stayed in expansion while ISM dipped further into contraction, a familiar divergence given their different panels. Either way, the sector is a minority slice of modern economies (roughly one-sixth in the US), and the larger services side continues to carry the load. For investors, it\u2019s important to remember that these surveys are backward-looking for stocks, but they help validate what markets have been pricing, which in our view, is a narrative of economic resilience vs. recession. With services expanding broadly and new orders still pointing to activity ahead, the macroeconomic outlook for growth in early 2026 looks viable.4<\/sup><\/a><\/p>\n\n\n\n With Only Weeks Left in the Year, Many Retirees Haven\u2019t Taken Their RMDs Yet <\/strong><\/a>\u2013 <\/strong>December 31 is fast approaching, and a new survey from Fidelity raises a caution flag. \u00a0As of November 30, Fidelity reports 53% of its investors who owe a 2025 RMD hadn\u2019t taken one yet, with nearly a third of the outstanding amounts tied to inherited IRAs. For most retirees, RMDs begin at age 73, but heirs who have inherited IRAs also face that same December 31 deadline. Since 2020, many non-spouse beneficiaries fall under the 10-year rule: the account must be emptied by the end of year 10. On top of that, if the original owner had already started RMDs before passing, certain beneficiaries must also take annual RMDs during those ten years. For those who miss the RMD deadline, and the IRS assesses a penalty of up to 25% of the shortfall (potentially reduced to 10% if you correct within two years and file Form 5329). Plenty of folks are cutting it close. If you still have a distribution to make, the practical advice is to take it now. Waiting now means risking fewer settlement days, less flexibility, and a higher chance you\u2019re forced to sell something you\u2019d rather hold just to raise cash.If you\u2019re unsure which rules apply to you or an inherited account, we\u2019d recommend calling your custodian or tax professional to gain clarity. We\u2019re also happy to help answer questions if you want to reach out.5<\/sup><\/a><\/p>\n\n\n\n Finding Silver Linings in a Volatile Market \u2013 <\/strong>Spotting hidden opportunities in a dynamic market can unlock valuable advantages for savvy investors.<\/p>\n\n\n\n![\"\"](\"https:\/\/zacksim.com\/blog\/wp-content\/uploads\/2025\/12\/image-7.png\")
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