27 posts
As professional investors and systematic managers, we see market leadership as the result of a constantly changing mix of valuations, growth, inflation, interest rates, liquidity, geopolitics, sector fundamentals, factor cyclicality, investor behavior, and a bit of je ne sais quoi.
The Federal Reserve raised its target range by 25 basis points this week, bringing the midpoint of the federal funds target range to 3.875%. Though the headline move was modest, we believe that this signifies a broader change in the policy backdrop.
After years of large-cap leadership, Small-Mid Cap (SMID) is back in focus. The strategic case for an allocation to SMID, however, is broader than this year's performance.
This week, rising tensions in the Middle East and growing concerns over inflation and fiscal deficits drove a broad selloff in global bonds. This global bond selloff reflects a combination of factors.
Sector performance varies widely across the business cycle. Investors and advisors alike should keep in mind that the sector that leads outperformance in one period may not outperform in the next phase of the business cycle.
Real wage growth can provide useful insight into the American household and the strength of our economy. Taking a step beyond nominal wage numbers, real wages are adjusted for inflation and show purchasing power.
