Review the latest Weekly Headings by CIO Larry Adam.
- Tighter lending standards still pose a risk
- The debt ceiling issue will get resolved
- The earnings outlook is improving
This past Thursday was National Twilight Zone Day. For those of you who are unfamiliar, The Twilight Zone was a sci-fi series created in the late 1950s. While the show only lasted five seasons, it was widely regarded as one of the greatest TV series of all time. Each episode was masterfully written and best known for the imaginative tales and ever-evolving narratives where ordinary people found themselves in extraordinary situations—“a place where anything could happen.” And given the rapidly changing twists and turns we’ve seen in the global economy and the financial markets over the last few years, it sometimes feels like we’ve crossed over into a modern-day version of the Twilight Zone. But, with the Fed’s fourteen-month-long tightening campaign near completion and the pandemic-related disruptions normalizing, we are optimistic that the financial markets' recent strength can continue in the months ahead. Here’s why: