Featured Insights
Equity markets
A Pullback, Not a Crash
The current environment is similar to several previous periods where market weakness and substantial P/E compression occurred against a backdrop of economic and earnings strength. Historically, these periods have been followed by solid stock rebounds.
Small-cap stocks
Don’t Fear the Bear
Royce sees ample opportunities in the wake of one of small-cap’s most challenging quarters in 40 years.
Around the Curve
Emerging Markets: Three Keys to Growth
We believe three key factors – all necessary – could facilitate the flow of capital back into emerging market assets in 2019: The Fed; fiscal and monetary policy in China; and U.S.-China trade relations.
International Stocks: Four Factors Behind the Gap
A narrowing of the advantages recently enjoyed by U.S. companies could reverse the international stock performance gap.
Interest Rates
The Fed: No Pause Now, But...
The Fed raised its target rate on Dec 19, as expected -- ignoring pleas for a pause that would relieve current pressures on markets fearing slower growth. Our managers discuss why and how the Fed's plans could change.
Chart of the Week
Chart Courtesy of ClearBridge Investments. 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..
Politics and Stocks: Post-Midterm Returns
CHART OF THE WEEK
Market Snapshot
The Fed: Reverse Jawbone
Market Snapshot
The Fed redoubled its campaign to undo the impressions left by its previous statements; China helped pick up the pace of its trade negotiations with the U.S.; Brexit brinkmanship saw no breakthrough.
Featured Insights
Brexit: To Fight Another Day
The Brexit saga moved forward, if uncertainly; China took steps to ease its economy as trade talks continued.
Brexit: Deal, No Deal, Or Something in Between?
A wide spectrum of potential Brexit scenarios still remains. On balance, our base case is for Parliament ultimately to support a “Plan B” deal. Under this outcome or an “extend” scenario, the probabilities now tilt toward a softer or later Brexit; the odds of a "no-deal” Brexit have fallen.
Mid Week Bond Update
U.S. Rates: Calmer Year Ahead for the Fed?
The Fed and the markets are learning how to communicate; parts of the U.S. yield curve are steepening; Brexit's impact on currencies and asset prices follows its own logic.
![FED OUTLOOK: "WAIT AND SEE"](/content/legg-mason/en-us/insights/market-outlook/fed-outlook-for-2019-wait-and-see/_jcr_content/image.img.jpg/1548120641985.jpg "FED OUTLOOK: "WAIT AND SEE"")
Fed Outlook: "Wait and See"
We expect that the Fed will eventually adopt a “wait-and-see” strategy this year, with at most one more rate hike in 2019.
Market Snapshot
The Fed: Reverse Jawbone
The Fed redoubled its campaign to undo the impressions left by its previous statements; China helped pick up the pace of its trade negotiations with the U.S.; Brexit brinkmanship saw no breakthrough.
Fixed income
Unconstrained: Stay Active
Income and global credit are becoming mainstays of fixed-income investing – an actively managed, unconstrained approach can be a valuable tool to face today's rapidly-changing market conditions.
Mid Week Bond Update
U.S. Economy: December Follow-Through
For the U.S., December showed a strong finish to a year of growth – at least for job seekers.
Markets Now: Review and Outlook
Our economic outlook is in slightly negative territory as of the end of December – a rebound from a far more negative position at the end of November, largely due to a recovery in global trade data.
Around the Curve
Fed balance sheet: Watching paint dry?
Given what's actually in the Fed's inventory of securities, is the current plan for selling it off too risky?
2019 Outlook: Shifting Signals
Explore what our 9 managers are saying about the markets in 2019.
The Fed: Timing is everything
The Fed raised its benchmark rate, along with financial markets' anxiety; U.S. headline growth for Q3 looked just OK, but the devil lurked in the details.
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