The recent mix of economic data highlights the importance of retooling one’s portfolio ahead of the Federal Reserve’s next meeting. On Friday, the U.S. Department of Labor released the latest jobs report. It found that the U.S. economy added less jobs than expected in August. However, this was balanced somewhat by a slight drop in the unemployment rate.
For many economists, this jobs report gives the Fed more justification to begin rate cuts. “It is clear that the unemployment market is slowing down, and the Fed has to start to move,” noted Raymond James Chief Economist Eugenio Aleman, per Reuters.
That said, the shaky job gains come after some additional mixed signals for the U.S. economy. Weaker reports from two key U.S. manufacturing gauges have raised some concerns about the resilience of the economy.
Keeping all of this data under consideration, investors could look to cultivate a portfolio that can take advantage of both good and uncertain economic news. Situations like these are where active opportunistic portfolio strategies get a great chance to shine.
Playing It Smart
As an example, look no further than the Natixis Vaughan Nelson Select ETF (VNSE). The fund seeks to generate robust capital appreciation with long-term results.
It takes an opportunistic approach toward building a careful multicap portfolio. Vaughan Nelson researches and deeply scrutinizes stocks to find companies with undervalued earnings growth, assets, and dividend yield. By focusing on underrated stock picks, VNSE opens up more potential for capital appreciation.
This actively managed strategy can be extremely beneficial in times like these. With mixed economic data continuing to jolt the market, VNSE can take advantage of market reactions to snag great long-term deals.
For investor portfolios, cultivating a capital appreciation strategy ahead of potential rate cuts can potentially deliver long-term results. Once the Fed moves into action, companies across the cap spectrum will be able to benefit from lower borrowing costs.
As a long-term strategy, VNSE has proven itself a valuable option. As of Sept. 5, 2024, the fund’s NAV has risen about 10.5% over the last 12 months.
For more news, information, and analysis, visit the Portfolio Construction Channel.