Putnam

Financial markets have changed dramatically since balanced portfolios were introduced to investors decades ago. As markets evolve and grow more complex, active management plays a greater role in the success of these strategies, which offer a mix of 60% equities and 40% fixed income.

Recent economic data, we believe, suggests sticky inflation with positive GDP growth is more likely in 2024 than a soft landing. We expect that interest rates will stay higher for longer on the back of increased Treasury supply and hawkish Federal Reserve rhetoric.

Inflation has been coming down since its peak in the summer of 2022. Because the U.S. has so far avoided a recession, soft-landing hopes have risen along with the decline in inflation.

There are periods of time in the investing world when contradictions and disagreement among “experts” run rampant. Often, those periods tend to coincide with inflection points in cycles, although you only really know that with the benefit of hindsight, in my opinion.

We see promising potential in countries with younger populations and forward-looking policies, such as India, Indonesia, and Mexico.

Reshoring and nearshoring are key trends for investors in global markets. As geopolitical tensions escalate and more businesses shift operations away from China, investors are considering the impacts of deglobalization.

News of a liquidity crisis at China's largest property developer, Country Garden, has rekindled fears about the scale of the country's real estate problems and potential ripple effects. And Country Garden is not alone.

How long will the Federal Reserve continue quantitative tightening (QT)? How large will its balance sheet be when QT ends? These important questions impact financial market liquidity, the anchor of asset values. We assess the likely path of QT in the years ahead.

A wide range of possible outcomes, a multitude of negative earners, and significantly less Wall Street coverage are just a few of the reasons investors in the small-cap universe should consider active managers who could steer them toward better results.

Today's economic conditions are attractive for BDCs (business development companies), and some benefit from businesses seeking alternative financing sources.

In a potentially positive trend for investors, the number of companies incorporating ESG metrics in their executive compensation plans has been growing.

The first six months of 2023 were full of surprises for investors, not the least of which was a Nasdaq surge of 32% — its best first half since 1983. The S&P 500 Index gained nearly 16% for the first half, powered by mega-cap stocks.

Effective tax planning means thinking about how tax rates might change.

Equity Insights offers research and perspectives from Putnam’s equity team on market trends and opportunities.

Signs of falling inflation have helped risk assets recently, but the relief is likely temporary. Volatility may continue in fixed income markets, as high-interest rates continue to weigh on balance sheets and the market digests the probability of a potential recession.