TCW

The Fed cut rates for the first time this year, and markets are weighing what comes next. In our latest podcast, Jamie Franco, managing director in Cross-Asset Research, breaks down the policy shift, its implications for growth and inflation, and where investors may find opportunities and risks as the cycle evolves. Listen here: https://lnkd.in/gUtQrnAd

The U.S. government shutdown could have wide-ranging implications for an already-fragile economy, depending on the length of the political stalemate. While some shutdowns have had limited long-term market impact, others have caused significant short-term volatility. Read our latest Quick Take. https://hubs.li/Q03LKK_f0 Disclosure: https://hubs.li/Q03LKM570

Active ETFs are capturing record flows and reshaping portfolios. Tune in as Scott Dennis, TCW’s Head of ETFs, explains the SEC’s anticipated approval of multi-share class ETFs, the opportunities they may unlock for investors, and the structural challenges ahead. https://lnkd.in/g7EAAy36 

TCW will be on the ground at the conference and looks forward to hearing Prashant Khemka’s perspective on global market shifts.

At the Raymond James Regional Conference, Portfolio Manager Bo Fifer, CFA, shared why an active approach is essential in artificial intelligence. While much attention is on generative AI, he noted there are meaningful opportunities across enablers, systems, and adopters, with applications reaching every sector of the economy – from diagnostic imaging in healthcare to basic administrative tasks. With adoption still in its early stages, focusing on fundamentals will be key to identifying the businesses best positioned to benefit.

Only about 20% of financial advisors are fluent in using AI today, yet the technology can already help with tasks like meeting prep, portfolio monitoring, and client communications. The key is to start small, focus on a clear use case, and build from there. Our latest insight offers a practical framework for advisors looking to harness AI effectively while keeping the human relationship at the center. https://hubs.li/Q03Kk9dF0

Scott Dennis, our Head of ETFs, joined industry leaders at the ICI ETF conference in Nashville to discuss the exciting next phase of ETF growth. Distribution and liquidity strategies will be critical for success as active strategies continue to see strong inflows, multi-share class structures could accelerate adoption, and there are already more than 4,000 ETFs in the U.S., with hundreds of new launches expected this year. Disclosure: https://lnkd.in/gwGnZBji

FED FLASH: The Fed lowered rates for the first time this year in what Chairman Powell called “a risk management cut.” The central bank cut rates by 25 basis points (bp) amid growing concern about the risks to the labor market. Trump advisor Stephen Miran, who was sworn in just yesterday, dissented, voting instead for a 50 bp cut. Despite this dissent, the Fed appears relatively united. Governors Bowman and Waller – both of whom dissented in July – didn’t do so again today, and market fears that we could also see hawkish dissents didn’t materialize. While the Fed acknowledged job gains have slowed, Powell also noted that the unemployment rate “remains low.” The Fed’s “dot plot” indicated today their median forecast implies two more cuts of 25 bp this year, but Powell was careful in the press conference not to commit to any preset path. The market is priced for “neutral” rates by the end of 2026, but we see plenty of room to run in front-end rates if we get to 3% earlier or if the Fed is lowers rates below 3% to stimulate a slowing economy. https://lnkd.in/gwGnZBji

Our Los Angeles office came together with colleagues and their families for a summer celebration at the Santa Monica Pier. With exclusive access to Pacific Park, the day was filled with rides, games, seaside favorites, and plenty of fun for all ages. It was a memorable opportunity to celebrate everything we’ve achieved so far this year while enjoying time together as a TCW community. We look forward to building on this momentum in the months ahead.

Multi-share class ETFs are expected to be coming soon, providing investors with more choice, tax efficiency, and transparency. While the new structure is expected to contribute to the rapid growth of active ETFs, a new article from Scott Dennis, Managing Director and Head of ETFs, notes that there’s more to creating a multi-share class ETF than just pressing a button and seeing inflows magically appear. https://tcwgrp.com/i92hpm Disclosure: https://lnkd.in/gwGnZBji