Market Outlook
Featured Market Outlook
What Could Go Right in International Stocks
Concerns about economic growth and geopolitical risks have weighed on international markets, but a softening of U.S.-China trade rhetoric and weakening dollar could spark a new wave of outperformance.
The Coming Late-Cycle Rotation
As we move into the later stages of the global business cycle, investors should prepare for some shifts in the current market climate.
Mid Week Bond Update
Fixed Income Headlines: Italy's Turn
Attention now returns to Italy, where coalition politics and the upcoming budget negotiations intersect with EU realities.
Mid Week Bond Update
Re-Emerging Markets: Currencies Tell a Tale
EM currencies continued to reflect the very real differences between markets; credit spreads in Europe continued to reflect the eventual departure of the ECB as bond buyer of note; as Greece began its post-bailout status, sovereign debt reflected the country's improved, but not yet solid footing.
Drug Stocks: Starved for Capital
Fears that drug pricing will collapse have pushed many investors away from this sector, yet we see drug spending becoming less, not more, of an issue going forward: given current valuation levels, the potential for stronger returns is very real.
Market Outlook
Mid Week Bond Update
Emerging Markets: Buying Fear
Emerging market bonds and Italian government debt bounced back from market lows; 10 years after the financial crisis, the market for residential mortgage backed securities looks very different.
Market Commentary
On EM Valuations and Fundamentals
The Emerging Market (EM) bear market could provide resplendent valuation opportunities. In our view, valuation and fundamentals will carry the day. The key to our prognosis: continuation of sustained moderate global growth.
Mid Week Bond Update
The Dollar: How High is Up?
The greenback's move is best understood in the context of the past five years; some troubled EM countries are taking positive steps; Italy's leadership appears to have committed to meeting EU budget guidelines.
Mid Week Bond Update
Turkey: Connect the Dots
So far, the flight to safety amid Turkey's currency crisis has been notable for its focus on genuine links between markets and institutions.
Mid Week Bond Update
U.S. Inflation: The Bond Market Weighs In
Signs of economic strength are plentiful. But the inflation outlook is pulling back – at least according to the market for U.S. Treasuries.
Mid Week Bond Update
Big Week for Central Banks: ECB, BOJ, FOMC, BOE
The meeting calendars of four key central banks have converged, generating a welter of decisions and data...
EM Debt: High Conviction Strategy
Despite the market spillover from developed market rate volatility, Western Asset does not view the recent market rout as sufficient basis to steer away from Emerging Market debt (EMD).
Mid Week Bond Update
U.S. Yield Curve: Inverting, or Reverting?
The loudest story in the U.S. bond market in 2018 is the flattening yield curve, headed toward inversion – and the recession which it nearly always portends. But what are observers to make of the steepening of the curve starting on Friday, July 20?
Third Quarter Outlook
Market & Strategy Update: Quick Take
Western Asset CIO Ken Leech surveys the state of global bond markets, sharing views on growth, inflation and the impact of trade and monetary policy.
Mid Week Bond Update
The Fed Playbook: For Now
Fed Chair Jerome Powell’s July 17th testimony before the Senate Banking, Housing, and Urban Affairs Committee featured a slight, yet unmistakable shift in tone about the pace and level of future rate hikes...
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