The current US equity bull market turned nine years old on March 9, 2018. That’s the second longest run without a correction of 20% on record. It’s natural to wonder if the tide is going to turn.
We see the US economy as maintaining its current path of respectable but not overly robust growth. Underlying fundamentals and economic momentum remain constructive, while we do not foresee an acceleration in growth to a level that would swiftly create inflationary pressures.
While many U.S. investors have shifted their holdings from actively managed accounts to indexed vehicles in an effort to capitalize on recent equity market tailwinds, the relative performance of passive strategies over the past decade doesn't necessarily justify that decision. This white paper from Baird Equity Asset Management explains why.
The opening months of 2018 have seen volatility return to global financial markets, but we think it is important to stress US economic fundamentals have remained broadly the same. After an unusually long period of calm in many markets, the reappearance of volatility at some point seemed likely, even if the speed of market gyrations has been unsettling for investors.
Worried about rising defaults? There are good reasons not to be. Not only do high defaults not translate into poor high-yield returns, but we don’t expect a slew of defaults in 2018.
The constructive conditions for the US economy remain in place, in our view, in keeping with an increasingly solid expansion across the rest of the world. US consumers have been benefiting from an economy that appears close to full employment and a stock market at record levels, while a vibrant corporate sector has been buoyed further by recent tax changes.
We believe the US economy’s current combination of moderately strong growth and low inflation is likely to see a further slow-but-steady tightening of monetary policy, following the confirmation by the US Federal Reserve (Fed) at its December meeting of a widely expected interest-rate rise.
There’s no questioning Amazon's impact on the consumer sector. The market continues to reward the company for its ambition, demonstrated success in taking market share, disruption of traditional business models, and expansion into new verticals and channels. However, this doesn't mean other opportunities don't exist in the consumer space.
In this recent white paper, Baird Equity Asset Management explores what some have dubbed "The Amazon Effect" in the changing consumer sector. Read on for timely insight on the risks and opportunities in today’s markets.
The economic backdrop has remained supportive, both in the United States and globally, and should allow the US Federal Reserve (Fed) to continue raising interest rates at a measured pace, in our view. Jerome Powell’s nomination as Fed chair points to continuity in monetary policy in the near term...
Ben Bernanke and our panel of world-renowned advisors examine the outlook for global economic growth amid geopolitical shifts.