Balance and Ballast: A Strategy for Uncertain Markets
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.
Sticky Inflation and Treasury Supply Likely To Push Yields Higher
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.
Sticky Inflation Is Likely if There Is No Recession
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.
Driving With the Rearview Mirror
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.
There’s More To Emerging Markets Than China
We see promising potential in countries with younger populations and forward-looking policies, such as India, Indonesia, and Mexico.
Made in Mexico: Nearshoring Is Accelerating Growth
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.
Debt Troubles at Country Garden Threaten Global Blight
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.
Fed’s Quantitative Tightening (Qt) Will Face Constraints
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.
Why Active Over Passive for Small-Cap Investing
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.
High Rates and Lower Bank Lending May Lift BDCs
Today's economic conditions are attractive for BDCs (business development companies), and some benefit from businesses seeking alternative financing sources.
ESG Materiality | Analyzing the Growing Role of ESG Factors in Executive Compensation
In a potentially positive trend for investors, the number of companies incorporating ESG metrics in their executive compensation plans has been growing.
Several Big Surprises This Year, but Inflation Will Govern the Market’s Next Moves
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.
Why Think About the Sunset of the Tax Cuts and Jobs Act (TCJA)
Effective tax planning means thinking about how tax rates might change.
Play Offense With Defense: Global Military Spending To Accelerate
Equity Insights offers research and perspectives from Putnam’s equity team on market trends and opportunities.
Inflation Will Challenge the Fed Again Soon
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.