Guggenheim's Walsh Sees Fed Cutting Once More This Year

• Equity markets are pricing in the conclusion of the Iran conflict and focusing on strong US economic fundamentals, leading to rapid snapbacks.
• Oil prices are expected to remain elevated around $100/barrel for about three months, with an extended Iran conflict being the primary downside risk.
• Fixed income is largely a rate story, with expectations for one Fed rate cut this year and a flattening yield curve due to increased Treasury supply and inflation concerns.

Guggenheim's Anne Walsh discusses the current state of equity, oil, and fixed income markets. She notes that equity markets are 'looking through' the Iran conflict, focusing on strong US fundamentals, but an extended conflict poses a downside risk for oil. Walsh anticipates one Fed rate cut this year and a flattening yield curve due to increased Treasury issuance and inflation concerns.