John Davi: The Market Has Entered a New Cycle

Identifying a New Market Cycle

• 💡 John Davi, CIO at Astoria Portfolio Advisors, argues that the market has already entered a new cycle, diverging from the consensus view.
• 🔑 Historically, the Fed cutting interest rates has consistently signaled the beginning of a new market cycle, a pattern observed with multiple Fed cuts in the past year.

Performance of Outperforming Assets

• 📈 Davi highlights that asset classes benefiting from a potential "debasement trade" have seen significant gains, such as emerging markets and developed international markets, both up 27%.
• 💰 Gold has surged 54%, and Astoria's real assets fund, PPI ETF, is up 24%, indicating a shift away from traditional growth assets.
• 📊 US sectors like banks (up 19%) and industrials (XLI up 17%) have also outperformed the S&P 500, suggesting a broad market rotation.

Portfolio Positioning and Inflation Outlook

• 🎯 Investors who feel