City National Rochdale – Economic Outlook and Investment Strategy

City National Rochdale's Economic Outlook for the US economy predicts slower growth but suggests that a recession is unlikely. The multiyear Fed rate cut cycle is seen as supportive, along with moderate inflation and strong consumer spending. Business investment is expected to increase with lower borrowing costs. Global outlook is positive due to central bank easing, despite divergent prospects across economies. Geopolitical risks are not expected to have a significant impact. In terms of investment strategy, the focus remains on high quality stocks and bonds. US equities are favored, and mid cap equities are seen as attractive for clients seeking capital appreciation. International equity valuations are relatively attractive but come with risks. Fed rate cuts are viewed positively for investors. Municipal bonds and high-quality corporate bonds are recommended for their yields. Alternatives are suggested for diversification and exposure to private markets, particularly for clients able to invest in illiquid assets.