Will the recent run-up in the Russell 2000 hold? Co-CIO Francis Gannon examines the forces behind the latest rise.
Mid-Week Bond Update
Global sovereign bonds rallied over the past five trading days as oil plunged, inflation expectations sank and data remained soft – all of which led some investors to question the US Federal Reserve’s (Fed) rate hiking path. A string of disappointing inflation, exports and investment data has...
Matt Bushby, RARE's Global Head of Distribution, explains their specialist view on infrastructure and the key infrastructure characteristics RARE looks for. He also examines why it can be limiting to view the infrastructure opportunity as the ‘Trump trade’.
Ken Leech Commentary
Until recently, the market consensus was one of “secular stagnation,” predicting anemic growth for the indefinite. Today, the prevailing theme is “global reflation,” calling for synchronized global growth that will lead to self-sustaining recoveries around the world. Western Asset has a different view. Read more.
Finding opportunity in fixed income
Why Western Asset continues to favor specific spread sectors and a long duration bias for a fixed-income portfolio.
Chart of the Week
Source: Bloomberg, as of 6/21/17. Past performance is no guarantee of future results. An investor cannot invest directly in an index. Unmanaged index returns do not reflect any fees, expenses or sales charges. This information is provided for illustrative purposes only and does not reflect the performance of an actual investment.
What's behind the surprising shift in yields of U.S. Treasuries since the beginning of this year? Is it the result of benign economic progress, or is it a sign of something more ominous?
Investing to Improve Lives
Although climate change and environmental degradation are global issues, it is local imperatives that are increasingly galvanizing emerging markets in their efforts to transition to low-carbon, environmentally friendly economies.
Around The Curve
“Black gold,” like the precious metal it borrows its nickname from, has caused investors a lot of pain in the past decade. But whereas the precious metal no longer impacts the world economy like it once did, oil prices dramatically impact consumer behavior, employment, and the budgets and fortunes of many nations. It can even impact industries far beyond energy, from autos to airlines, and chemicals to utilities. Very few people saw the collapse in oil from $100 to sub-$30, many didn’t foresee the rise back to $50, and the market has much more fear than conviction in the next move.
The Fed hiked its target rate, but its inflation bogey remains elusive; crude oil fell further on bulging inventories; Greece got a lifeline; formal Brexit negotiations finally begin.
The power of choice
Choice is at the heart of investing; one can’t own everything. But should investment choices be made in a mechanical way, based on an index? Or should they be made selectively, based the research and expertise of an active manager?
Around the Curve
It’s that time of year when friends and colleagues are asking about summer vacation plans. Interestingly, this question happens to dovetail with the requests we get on where we potentially see value. For those tourists who are stuck on ideas, a first logical step may be to identify favorable exchange rates to help narrow down potential destinations.
For the second time in 2017, the U.S. Federal Reserve raised the federal funds target rate, now at 1.25%. Will the Fed stand pat in September?
Mid-Week Bond Update
Global bond markets soared on Wednesday, reversing a mixed five-day period, after US inflation disappointed for a third consecutive month and the Federal Reserve (Fed) reinforced its dovish stance, despite rising, as expected, rates. The US central bank lifted its target rate to 1.25%, from 1%. However, financial conditions continued to ease...
Regulatory delays for pipeline development are easing and drilling activity is increasing, which could have positive implications for MLPs in the energy sector.
Western Asset Global Outlook
The current steady but unspectacular global growth backdrop has not materially changed. We remain optimistic that global growth of around 3% is sustainable while...
Qatar's sudden exile was years in the making; Theresa May erodes her own base; US consumers leverage up; Spain's banks pass a test.
With the erosion of Theresa May's support making Brexit more difficult to negotiate at home as well as abroad, read what our investment managers have to say about the impact of the election on the UK, Europe and the financial markets.
Infrastructure, essential for modern living, can also serve an integral role in helping investors reach their long-term financial goals.
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