Why Investors Need Perspective on the Soft Landing Debate

The S&P 500 and Nasdaq fell 1.5% and 3.2%, respectively, driven by a decline in large cap tech stocks, while the 10-year Treasury yield climbed to 4.05%. Market-based measures still suggest that the Fed could cut rates by 25 basis points five or six times this year, beginning in May and possibly as early as March. So, while investors might prefer to start the year off on a positive note, it's important to not overreact to a single week of activity, especially in the context of the strong trends of the past twelve months. What should investors consider today to maintain a longer-term perspective on markets and the economy?