The health of the US economy will be front-and-center for markets, but five key issues in focus may also impact investors ahead of the November vote.
The challenges ahead for airlines are real, but there are reasons to invest selectively now.
Is the rapid increase in corporate borrowing this year a harbinger of tough times to come? The answer isn’t simple.
We currently expect the eurozone economy to shrink by around 1% in 2020, taking into account monetary and fiscal policy responses to reduce the damage.
The Fed’s inflation focus implies a high bar for rate hikes in 2020. Further cuts this year cannot be ruled out if inflation continues to undershoot the Fed’s target.
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.
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.
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.
Weekly muni monitor
Absent improving fundamentals, we believe additional spread compression will remain paused.
July retail sales (excluding restaurants) are well above pre-COVID levels, but much of that took place online.
Proposals in two key states would change the landscape for the largest issuers and their investors.
Western Asset examines recent trends in the muni bond market and provides its outlook about conditions ahead.
Muni weekly update
Foreign demand for taxable munis is generating new issuance, and a potential benefit for spread investors.
The Fed is planning for a prolonged period of accommodation, and seeking to ensure its policies can be sustained as long as needed.
It was the most volatile first half-year in the history of the muni market, yet the Bloomberg Barclays Municipal Index still returned 2.08% for the period following a strong second quarter.
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