Schroders global investment pointed out that despite market volatility, trading in certain markets is close to historical highs. Stocks not only outperform inflation, but their returns also surpass cash. Stocks on average outperform cash by about 9%. Schroders global investment analysis found that in 22 interest rate cut cycles, in 16 of them, even when the economy was actually in recession, the average return rate was still positive. If the Fed achieves an "soft landing" for the economy in this rate cut cycle, then the stock market will perform well. Schroders global investment states that financial markets currently expect interest rates to fall by 2024, leading to decreased attractiveness of asset classes such as cash and bonds, and driving some regional stock markets to reach historical highs. On average, since the Fed began cutting interest rates, the US stock market has actually outperformed inflation by about 11%, due to the financial markets re-digesting optimistic sentiment. In terms of portfolio risk, Schroders global investment currently favors stocks over other asset classes such as corporate credit.