The U.S. budget deficit, which has been a point of discussion among economists and investors, recently received a downgrade in credit rating from Fitch Ratings agency, citing expected fiscal deterioration, a high and growing general government debt burden, and erosion of governance.
Monthly Archives: August 2023
20 posts
For fixed income investors who want to go active, strategies are available in a variety of wrappers, including ETFs. Active fixed income ETFs were initially limited to ultra-short bond strategies. But today, a wide variety of strategies exist.
As the Federal Reserve evaluates its next move on short-term interest rates, it's essential to consider the recent shift in wage growth and inflation.
The Federal Reserve's aggressive monetary policy tightening is slowly helping to moderate inflation, but it has more work to do to tame price increases in the sticky services components which will likely require further slowing in the labor market. Wage pressures remain strong driven by a tight labor market and consumption is slowing while GDP growth is easing.
The market's recent bounce may be a sign that the recession narrative has been put on hold, at least for now.
The idea that stocks go up more often than not should not be surprising, but the fact that August tends to be a down month in the S&P 500 is a well-known phenomenon.
The Fed's recent actions have led to a reevaluation of what it means to 'fight the Fed,' and it's crucial for investors to understand the difference between a trading opportunity and an investable rally.
As the sustainability-linked bond (SLB) market expands, we expect to see well-established norms at the issuer side and consensus among investors, as well as more transparent and relevant target settings which are imperative for fostering an efficient SLB market with minimal transaction cost.