Market Outlook
Featured Market Outlook
Midterm Elections: Divided Congress Signals Gridlock
With control of the Senate and House now divided, and the prospects for a recession still muted, the S&P 500 should continue to march higher in 2019 -- with areas of potential opportunity for active managers in specific sectors.
Equity Selloff
October Volatility Not Atypical
As monetary policy normalizes and the economic cycle matures, volatile days like those just experienced may become more common. However, the end of the cycle appears to remain in the distant future, allowing investors to find opportunity amid market anxiety.
Around the Curve
Eurozone Yields: Sustainable?
Is the current level of 10-year Eurozone yields the new normal?
International stocks
Electric Vehicles: Rolling Forward
The electric vehicle (EV) market continues to expand, and with it, opportunities for investors – not only in auto manufacturing, but also in the parts, materials and adjacent industries.
Fixed income update
Navigating Risk and Reward
While we don’t see this credit cycle ending soon, its longevity does warrant extra scrutiny on valuations and some types of of risk.
Market Outlook
Mid Week Bond Update
Pound and Euro: Under Pressure
While the rising dollar has been getting all the attention, the British pound and the euro have been surprisingly resilient in the face of significant pressure.
Continuing expansion
The Credit Cycle: Key Signals
None of the five early warning indicators tracked by Western Asset point to an end of this expansion phase of the economy.
Market and Strategy Update
The Continuing Uneven Global Recovery
Our thought now is that the optimism for US growth is a bit overdone and pessimism around lethargic global growth rates has swung too far to the downside. S
Mid Week Bond Update
U.S. Rates: Sleeper Steepening
While some market observers worry about an overly hawkish Fed provoking recession, the U.S. Treasury yield curve appears to be sending a somewhat different message.
Mid Week Bond Update
European Bonds: Ignoring Politics?
Economics took a back seat to politics in European market last week.
Mid Week Bond Update
Bonds and Budgets: Italy vs. EU
The EU sent back Italy's budget for revisions; U.S. Treasuries got a safe-haven boost; macro events showed up in key currencies.
Mid Week Bond Update
U.S. Debt: Punchbowl Economics
U.S. Treasuries focused on Fed policy more than prospects for growth; EM currencies rose post-Q2; China trimmed its holdings of U.S. Treasuries along with the rest of its FX reserves.
Mid Week Bond Update
U.S. Inflation: Expecting the Best
The upward move in 30-year yields begs questions about growth, inflation and the Fed's next moves; Brazil's post-election markets all move up; China's bank reserve requirements are moved down.
Around the Curve
EM Dollar Debt: Regime Change?
In dollar-denominated EM debt, differentiation among markets may be growing, suggesting a closer look.
Anatomy of a Recession:
One for the Record Books
ClearBridge's Recession Risk Dashboard continues to point to healthy backdrop for the U.S. economy and further continuation of an already record-setting expansion, with equity markets benefiting from buybacks and other shareholder-friendly moves through the coming quarter.
![Mid Week Bond Update: U.S. ECONOMY: "HISTORICALLY RARE"](/content/legg-mason/en-us/insights/market-outlook/historically-rare/_jcr_content/image.img.jpg/1538580970705.jpg "Mid Week Bond Update: U.S. ECONOMY: "HISTORICALLY RARE"")
Mid Week Bond Update
U.S. Economy: "Historically Rare"
Fed Chairman Powell reiterated the FOMC's view of the economy as unusually favorable; Argentina has made some gains, courtesy of the IMF; Italy's latest budget is still a work in progress.
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