We believe the recent correction in technology and related momentum stocks is healthy, and does not signal an end to the bull market.
Is the rapid increase in corporate borrowing this year a harbinger of tough times to come? The answer isn’t simple.
Will we see a U-, V- or W-shaped path to recovery? A K-shape -- with two paths rather than one -- may be a more useful model.
Public policy support for infrastructure to help stimulate the economy should now reflect concerns about climate change, too.
Commercial real estate
Investment in new warehouse space, market proximity and relative costs have helped boost U.S. East Coast ports and inland hubs, particularly in the Southeast.
Chart of the Week
Chart courtesy of ClearBridge Investments. * Institutional & Retail Money Funds – ICI. ** MSCI U.S. IMI Index. Data as of July 3, 2020. Source: FactSet. Past performance is no guarantee of future results. Indexes are unmanaged, and not available for direct investment. Index returns do not include fees or sales charges. This information is provided for illustrative purposes only and does not reflect the performance of an actual investment
Chart of the Week
The collapse in oil prices has added to market dislocations and uncertainty associated with the coronavirus pandemic.
New Jersey's new tax measures and expected debt issuance are affecting the outlook for its bond ratings.
The challenges ahead for airlines are real, but there are reasons to invest selectively now.
Unanswered questions about future asset purchases could potentially undermine confidence in the Fed’s commitment.
Despite upward price pressures in certain industries, on balance there's doesn't appear to be sustained inflation dynamic at work.
While we see further opportunities in cyclicals, the strength of an upturn in these sectors remains highly uncertain.
Recovery Indicators Update
Improvement in Housing Starts and Credit Spreads data confirms our view that a durable market and economic bottom has formed.
The New Normal
The pandemic has created short-term demand challenges for office properties, but we are skeptical that working from home will severely impact office usage long-term.
Total durables orders jumped a whopping 11.2% in July, with a large 1.1% upward revision to the June estimate.
We are encouraged by optimism on both the medical and economic fronts. But while recent events are promising, we believe the road ahead will be a long one.
Around the Curve
We believe the four key forces supporting the dollar are in retreat.
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