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Advisor Mallory Sampson: markets expect Fed cuts; Rio Rancho permanent fund near $12.5M
Summary
Investment advisor Mallory Sampson told the Rio Rancho Investment Advisory Board that markets are pricing a September Fed rate cut and that the permanent fund was roughly $12.2M at June-end and about $12.5M at end of July, recommending modest moves toward fixed income to rebalance after equity concentration.
Mallory Sampson presented an economic update and the permanent fund performance through June, with a July balance update. "The big expectation is that in September, the Fed will cut interest rates," Sampson said, and she told the board the market is "pretty certain that's going to happen next month." She pointed to inflation easing and a softening labor market as context for that outlook.
Sampson reviewed asset-class performance and recommended tactical moves: returning some allocation from large-cap equities into fixed income because large-cap concentration—driven by a few technology names—has been a key driver of recent equity returns. She reported the permanent fund balance was about $12,200,000 at the end of June and about $12,500,000 at the end of July, and described a recommendation earlier in the year to move $100,000 from large-cap into fixed income and an August recommendation to move $250,000 for rebalancing.
