report by BlackRock
Results for ""
Market Outlooks
Weekly Market Compass: Israel may provide a preview of what’s to come in the US and UK — and in any country that achieves broad vaccine distribution.
This piece is approved to use with clients.
A month ago, I wrote about the great progress Israel was making in terms of inoculating its citizens against COVID-19. At the time, I said that we would want to follow economic data in Israel closely for indications of what the US and UK could expect in the near future — as they are making swift progress in vaccinating their respective populations — as well as what any country can expect once it successfully vaccinates a significant portion of its population.
Market Outlooks
Back to the future of fixed income, part 2: The search for more income
This piece is approved to use with clients.
In our original Back to the future of fixed income, we explored the value of and demand for income in an era of historically low government yields. For a sequel, we delve into an oft-maligned and misunderstood market segment: high yield. Described less generously as ‘junk’, we see a complex and evolving market segment, one that is essential in any conversation about income.
Fixed Income Insights
Beware the ides of March
This piece is approved to use with clients.
As the first quarter draws to a close, investors should be mindful of the seasonal weakness typically seen with municipal bonds (munis) at this time of year. This seasonality is due to a confluence of factors, including an uptick in supply (versus a lack of), fewer maturing bonds and lower coupon payments – and a potential pause in industry flows as a result of investors paying their tax bills in April.
Market Outlooks
Weekly Market Compass: Investors may be grateful for the Fed’s easy money, but they’re also wary about what might come next.
This piece is approved to use with clients.
If you had to quickly describe the relationship status between investors and the Federal Reserve, your best bet might simply be: “It’s complicated.”
Market Outlooks
Weekly Market Compass: The economy may not truly turn the page until spring
This piece is approved to use with clients.
It might be 2021, but it doesn’t feel like a new year in many parts of the world. We haven’t yet turned the page on all the difficulties of the past year, so it seems like we are stuck in 2020. Or as my colleague aptly put it, this is just Dec. 49, 2020.
Market Outlooks
Weekly Market Compass: Seven reasons I expect a powerful US economic recovery in 2021.
This piece is approved to use with clients.
I periodically walk into stores to get a sense of how the US economy is doing. This past weekend I walked into a car dealership in my area. I chatted with a car salesman who has worked in the industry for more than 50 years. He shared that this is a very strange economic environment — car purchases have increased (he had already sold four cars that day), but so have the number of people stopping by to see if there are any job openings, who say they’ve been out of work for six or nine months.
Market Outlooks
Weekly Market Compass: Stocks were hit last week in the face of inflation fears, but I believe it was a temporary adjustment to a rise in rates.
This piece is approved to use with clients.
Last week was what I would call a “Rip Van Winkle” week. Set in the colonial days of America, Rip Van Winkle is the story of a man who, sick of his wife, decides to go for a hike in the mountains with his dog. He meets a group of strange men who offer him an unusual drink, causing him to fall asleep.
Market Outlooks
Inflation: base effects versus spare capacity
This piece is approved to use with clients.
The prospect of inflation remains a hot topic for both investors and policy makers. Chair Powell, in his testimony to Congress this month stressed that ‘inflation risks are to the downside’. He stated that inflation in the coming months is likely to jump as a result of ‘base effects.’
Market Outlooks
Weekly Market Compass: As Israel leads the way in COVID-19 vaccinations, events such as concerts and theater performances return after an 11-month ban
This piece is approved to use with clients.
When I was in business school back in the late 1990s, I found that one of the most heavily used — and effective — teaching tools was the case study. Learning from what other companies and industries did or didn’t do was incredibly helpful in gaining understanding and insight.
Market Outlooks
Weekly Market Compass: Bitcoin has gained credibility over the past three years, but I believe its use as a currency, a diversifier or an inflation hedge is a bit off the mark.
This piece is approved to use with clients.
The last time I wrote about bitcoin was back in December 2017. Back then there was a lot of excitement around bitcoin and other cryptocurrencies because both the Chicago Board Options Exchange and CME Group had begun offering bitcoin futures. Investors were excited about this opportunity, sending up the price of a single bitcoin thousands of dollars higher over the several previous weeks.
Fixed Income Insights
Why BBB munis are an A+ opportunity in our books
This piece is approved to use with clients.
Investment grade muni spreads tightened significantly since March, but still remain elevated in some areas versus historical averages.
Fixed Income Insights
February 2021 Fixed Income Market Update
This piece is approved to use with clients.
In our view, January may prove to be a microcosm of the new year. Optimism abounds for progress against the pandemic and a rapid economic recovery, but challenges remain on both fronts.