The dominance of the momentum factor roars on. At nearly every step this year, this risk factor has outperformed the broad stock market, based on a set of ETFs through yesterday’s close (Aug. 13). The recent rebound in so-called high-beta stocks has lifted this factor to a strong second-place performer so far in 2025.
Daily Archives: August 14, 2025
Macro Briefing: 14 August 2025
Fed funds futures are pricing in a near certainty of a rate cut at the next FOMC meeting on Sep. 17. The market expects a 1/4-point cut, which would reduce the current 4.25%-4.50% target range to 4.0%-4.25%. “The Fed has a difficult balancing act,” said Derek Horstmeyer, a finance professor at George Mason University’s Costello College of Business. “They have to weigh an expectation of slower job growth against an expectation of inflation. I think they’re weighing all of it.”
