The consumer price index (CPI) for January showed that core inflation held steady at a rate of 3.9% last month, a small setback in a trend of moderating inflation in the U.S. Healing in global supply chains and a rebalancing of the U.S. labor market have helped to dramatically tame inflation over the past year.
Companies supporting efforts to create a more secure and stable world could provide equity investors with an attractive source of long-term returns.
A slate of US economic data is about to put the loftiest Treasury yields this year to the test.
Over the past two years, we have had to revise a lot of numbers upward: the Fed hiked rates more than we expected, inflation has been sticky and growth has far exceeded expectations.
The coming 12 months are shaping up as the year of the interest-rate cut. After racing ahead with the most aggressive tightening campaign in decades during 2022 and 2023, central banks around the world are poised to begin easing monetary policy as inflation continues to retreat.
Critics of the Federal Reserve argue that the acceleration of US inflation in early 2021, and the rapid disinflation of recent months, had nothing to do with monetary policy, because the sources of above-target price growth were all on the supply side. This view is both right and too simple.
Earnings haven’t been consistently rewarded in equity markets recently. That could change faster than you think.
Franklin Templeton’s Tony Davidow sits down with Jackie Klaber, Head of Alternative Investments at Rockefeller Capital Management, to discuss approaches to allocating to alternatives, and ways to better understand the role alternatives play in a portfolio.
The latest consumer price index reading indicated that core prices — excluding volatile food and energy — rose 0.4% in January from a month earlier, exceeding the median economist forecast.
Warnings that the tech-fueled stock rally had gone too far had been ringing out for weeks. And for weeks, equity bulls pushed the likes of Nvidia Corp. higher, confident that artificial intelligence growth and an on-hold Federal Reserve would help justify nosebleed valuations.
The S&P 500 Index blew past a series of troubling markers in its relentless rally to 5,000. Now, after Tuesday’s rout, investors are staring at a potentially long way down before they find support.
Traders ratcheted down their expectations for a Federal Reserve’s interest-rate cut before July, and Treasury yields soared, after a report showed that inflation remains sticky in the US.
Two seasoned investment professionals bring us up to date on the intersection of commercial real estate and bank lending.
The cost of housing remains a hot-button topic with both Millennials and Gen-Z. Plenty of articles and commentaries address the concern of supply and affordability, with the younger generations getting hit the hardest.
As the U.S economy continues to expand at a nice rate of speed, the eurozone is stuck in a pitstop. Though the common currency region was able to avoid a technical recession last year, preliminary estimates show that activity stagnated in the fourth quarter of 2023.
Market folklore provides an easy, but inaccurate guide for investing in today's interconnected and complex market. Indicators based on economic or market behavior may be preferred.
The latest January release of the ClearBridge Recession Risk Dashboard shows another indicator move from red to yellow. Jeff Schulze of ClearBridge Investments shares his insights on what this could mean for the recession outlook in the United States and the overall state of the economy.
Broadly speaking on both counts, ESG funds posted solid returns last year. But many investors pulled capital from these products with some actively managed funds being the most afflicted by outflows.
Investors are going “all in” on US technology stocks as they turn the most optimistic about global growth in two years, according to a survey by Bank of America Corp.
Bond traders have come more in line with the Federal Reserve’s trajectory for the upcoming easing cycle. Strategists at Citigroup Inc. say what’s missing now is traders hedging the risk of a very brief easing cycle followed by rate increases shortly thereafter.
Investors who stay too long in cash may find they’ve missed out.
When it comes to taxes, it's always best to be prepared for any future changes that could either benefit or hurt your clients. This year's inflation-related adjustments to tax brackets and standard deductions could give some of your clients more flexibility to manage their capital gains.
Once again, as we have argued several times before, if the Fed, once after having achieved its 2% target and remained at the target for several years, decides that a different target may be more effective for conducting monetary policy, they may decide to change the target.
High yield bonds are off their highs of 2023, but even now, with all-in yields around 8%, the asset class remains competitive with equities for total return potential with significantly better downside protection, according to Payden & Rygel’s Jordan Lopez and Nick Burns.
Without education on how to implement an allocation to private markets investments, many advisors are waiting on the sidelines despite the clear benefits of allocating.
There are three pitfalls that I most commonly see income investors fall victim to. I hope illustrating them will help you avoid their damaging effects on your investment portfolio.
This article identifies 10 real-world considerations in tax efficient distribution planning from the perspectives of an academic (Wade Pfau, PhD), a practitioner (Joe Elsasser, CFP), and a CPA (Steven Jarvis).
Six years after a famous blowup in the volatility market shattered a lengthy calm in US stocks, the latest Bloomberg Markets Live Pulse survey reveals growing Wall Street concern over a new boom in trades that bet against equity turbulence.
Bond traders are finally heeding one of the market’s oldest lessons: Don’t fight the Fed.
Chinese equities are extremely cheap and priced for bad news. We believe this environment may present opportunities for active managers.
A data-dependent Federal Reserve is keen to hold interest rates until it gets additional confirmation inflation is cooling. This could keep the window open for prospective bonds investors seeking value opportunities.
Mortgage rates in the US inched higher amid signals that the Federal Reserve is likely to keep its policy steady for some time.
Franklin Fixed Income CIO Sonal Desai discusses why the recent acceleration in productivity growth might prove durable, leading to higher potential returns on real investment and a higher equilibrium interest rate.
Over long horizons, dividends’ growth and reinvestment of those payouts serve as vital factors in portfolio growth. However, dividends aren’t guaranteed and with bond yields still high, some skittish investors may be inclined to embrace fixed income over equity income.
One of the more fascinating and mysterious parts of watching the Federal Reserve is the ongoing dialogue between Fed leaders and Wall Street. We imagine private meetings held in great secrecy. Those may in fact occur, but I’m not sure they are even necessary.
Tomorrow marks the start of China’s Lunar New Year, meaning it’s out with the Rabbit and in with the Dragon… but all eyes remain on the Bear. And no, I’m not talking about the hit Hulu series, but Russia.
Investors experienced a shift in global risk sentiment during Q4, marked by lower inflation and the anticipation of an end to the rate hiking cycle.
The Fed poured cold water on a March rate cut, but the underlying message still has rates coming down—by a lot. Waiting for the starting point can be risky for investors.
Alongside great content, we’re also bringing some of the most prominent voices in finance to the stage. J.P. Morgan Asset Management’s chief global strategist Dr. David Kelly recently shared what he’s thinking about and watching in markets ahead of Exchange.
The SEC is using its authority over dealers to sneak in the back doors of these entities, which will inevitably create new or modified entities to reduce the cost of regulation.
Treasury yields rose further — with some reaching year-to-date highs — ahead of inflation data comprising the market’s next test after a string of Treasury auctions went off without a hitch.
U.S. Stocks were positive in January as more Goldilocks economic data fueled investor optimism. U.S. gross domestic product (GDP) came at a +3.3% for Q4 2023, much stronger than the expected 2% gain.
Doom spending is “spending money despite concerns about the economy and foreign affairs to cope with stress,” says the credit-tracking company, and about 27% of Americans say they’re doing it.
In an interview with 60 Minutes that aired Sunday, Federal Reserve Chair Jerome Powell was asked “To what degree does politics determine your timing” of when to reduce interest rates? Powell firmly replied that “We do not consider politics in our decisions. We never do. And we never will.”
The US government sold a record $42 billion of 10-year notes Wednesday at a lower-than-anticipated yield, soothing investor nerves after a recent rout and indicating confidence that the Federal Reserve will eventually cut interest rates.
On the surface, there’s much to like about the job market. But when you get into the details, it’s not quite as strong and some things don’t add up.
Janus Henderson Investors Portfolio Managers Greg Wilensky and Jeremiah Buckley discuss what they consider the three essential elements of an effective balanced strategy in the current environment.
At its core, inflation is too much money chasing too few goods. That was the case in 2020 through 2022. This is not the case anymore.
Stocks and bonds rallied at the end of last year on the hope of a seemingly improbable combination of dynamics playing out to support financial assets in 2024 — cooling inflation, solid economic growth, a resilient labor market, and as much as 150 basis points of interest-rate cuts.
It is certainly a confusing economic environment. Jobs growth is strong yet there are constant reports of high-profile company layoffs. The yield curve is inverted suggesting a recession yet the stock market is at a record high.
