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Capital Market Outlook

Your resource for the latest thinking from our experts on the markets and economy in the coming year and beyond

October 18, 2021

The Global Energy Crunch

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Yes, the robots are coming and not a minute too soon. Plus strong demand and tight global supplies are currently driving energy prices higher, and stalling sentiment indicates equity upside.

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October 12, 2021

Approving Fiscal Boosters

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We look at recent geostrategic chess moves and the implications for investors. Plus market yields seem to agree that monetary policies will likely remain supportive of growth for some time, and an increased emphasis on fiscal treatments brings significant implications for the business cycle and portfolio positioning.

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October 4, 2021

Economic Policy Turbulence Ahead

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While fiscal policy has a great deal of near-term uncertainty, monetary policy is the more important piece to watch for tactical and strategic asset allocation decisions. Plus, many foreign investors have placed their faith on U.S. assets; and it's not all gloom and doom on the U.S. global earnings front.

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September 27, 2021

Supply-Chain Strains Reflect A Rapidly Changing Economy

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The speed, scale and scope of the government-led Energy sector transformation suggest more supply discontinuities should not be surprising ahead. Plus investing in an “everything expensive" market, and the rise of retail traders is contributing to the current secular bull market.

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September 20, 2021

Strong U.S. Capex Outlook

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Selected areas of emerging markets may present opportunities, but nearer-term challenges keep us tactically neutral. Plus investment growth is likely to remain strong to expand supply capacity and ease shortages, and it's a good time for a reminder about the perils of market timing.

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September 13, 2021

Investing for High Inflation

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A variety of emerging macroeconomic risks should be monitored by investors as we head into the end of the year. Plus investing for high inflation, and one thing not in short supply is cash.

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September 7, 2021

How Durable Are Record-High Margins?

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Investors should watch closely for signs of a budding peak in corporate profit margins. U.S.-China relations: Breaking up is hard to do—a bullish prospect for U.S. investors. What could Federal Reserve tapering mean for equity markets?

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August 30, 2021

Supply Chains, Inventories and Inflation

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Trends from around the world show supply chain bottlenecks have been holding back global growth; the next wave of the digital revolution will help to provide a significant shift up in real gross domestic product and productivity growth; consumer strength is moderating.

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August 23, 2021

Time to Taper

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With demand for labor exceeding supply by a widening margin, it may be time for the Fed to taper; key drivers for asset prices should include economic resilience and inflation; Senate one step closer to budget resolution.

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August 16, 2021

Extended Strong Manufacturing Cycle Likely Ahead

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In our view, the stage is set for the next leg up in global cyclical, value trade. Recent regulatory measures have made for a prolonged period of volatility in Chinese equity markets. The gaming and tech industries have breathed new life into the Metaverse concept, a virtual environment you can "plug into" via virtual reality.

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August 9, 2021

Macro In Brief​

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The U.S. economy is currently in the early stages of a transition from an unprecedented policy-induced boom to a private sector-fueled, stronger-for-longer economic expansion. Plus considerations for positioning portfolios from the U.S. infrastructure bill, and an update on Q2 earnings.

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August 2, 2021

Macro In Brief​

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Current economic data is positive for risk assets, for now, but business cycle risks are building. Plus the pressure’s on emerging market central banks, and just as China’s crackdown of its technology sector broadened out, many U.S. Mega-cap tech names hovered near highs.

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July 26, 2021

Too Much of a Good Thing​

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Higher inflation will likely remain persistent rather than transitory. The pandemic disruption to supply chains has served as a flashpoint in evaluating vulnerabilities and fragilities across a number of industries. And we believe we are on the road to a more decarbonized future.

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July 19, 2021

Stronger for Longer​

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The cyclical and Value beneficiaries of currently strong economic growth tend to reassert their leadership until monetary policy actually turns restrictive. Plus we favor a more active approach to emerging markets, and small caps are off to a strong start in 2021, and in our view, momentum could continue.

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July 12, 2021

Oil-Price Forecasts Run the Gamut

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Uncertainty, long-term supply restraints, and unprecedented monetary liquidity are adding further upside bias to oil prices. Plus The Art of Investing in China: “Crossing the River by Feeling the Stones," and assessing climate risks relies on good disclosure.​

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July 6, 2021

Macro Moderations and Market Transitions​

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The market's drivers are likely to transition toward business spending, productivity and shifting consumer spending toward services. Plus ten reasons to stay long the United States, and seasonality suggests the S&P 500 benchmark just entered its strongest month of the year—July.

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June 28, 2021

The Horse is Out of the Barn

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The real question for investors is how much their money will be worth after this “transitory" inflation is over. Also, a look at which categories are likely to appreciate next, and how stocks may be supported by corporate earnings.​

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June 21, 2021

Elevated Narrow Range for Margins Likely Through 2022

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Because of deeply negative current real interest rates, profit margins are unlikely to decline much from elevated current levels before 2023, in our view. Also: a mid-year glimpse at global equities, and research and development as a key driver of global growth and competitiveness.

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June 14, 2021

Nuclear Energy: The Ultimate Green Energy Play

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To reach net-zero carbon emission goals by 2050, nuclear energy is likely to play a prominent role. Still Frosty: U.S.-China Relations and the Implications for U.S. Investors. The Federal Reserve's wind-down of the Secondary Market Corporate Credit facility is not an issue for markets, in our opinion.

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June 7, 2021

Keep on Keeping On Until Pent-up Demand Is Gone​

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Coincident and leading indicators of U.S. business investment spending remain positive heading into the back half of the year, pent-up demand will quickly evaporate at this pace of growth. The global baby bust and market implications. European yields are turning positive.

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June 1, 2021

Inflation Fears Create Ambiguous Market Signals​

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Inflation fears create ambiguous market signals. Key global developments to watch and potential catalysts that might drive markets going forward. What Federal Reserve tapering could mean for equity markets.

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May 24, 2021

Arming Portfolios for the Inflation Rotation​

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Ultra-aggressive Federal Reserve efforts to re-anchor inflation expectations at a higher level have started to show results. Arming portfolios for the inflation rotation. “Cashing in" on the global consumer recovery.

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May 17, 2021

What's Next for the Manufacturing Cycle?

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The manufacturing index suggests cyclical momentum is as strong as we have seen in the post-war period. A Two-Tiered Trend in Emerging Markets. Reality Check: Some Inconvenient Truths about the Green Revolution.

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May 10, 2021

Inflation in the Material World​

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Structural deflation in the Technology sector has lulled many investors into complacency about the outlook for inflation. Concerns over the next leg for equity markets have become more acute. Pandemic startup surge: The spike in applications to start new businesses.

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May 3, 2021

Fed Not Ready To Spoil the Party​

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The Federal Reserve is not ready to spoil the party. A robust U.S. economy is not only considered a seismic tailwind for U.S. corporate earnings but also represents a powerful blast to global earnings. The share of zombies may be in remission amidst a favorable macro backdrop.

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April 26, 2021

Housing on Fire

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We expect the strong housing expansion to continue. Don't forget about the three bears. The American Jobs Plan lays out a sweeping set of priorities with the aim of creating jobs by addressing infrastructure underinvestment, concerns from climate change, and demographic and development challenges.

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April 19, 2021

Inflation Complacency

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Inflation complacency: Early warning signs are pointing to big upside inflation surprises ahead. The U.S. is leading the global economic recovery and entering into a growth revival. The year-over-year changes in the Consumer Price Index (CPI) over the coming months are likely to be elevated.

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April 12, 2021

Reflation Tailwinds Also Give Boost To Oil Prices

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A high correlation with inflation favors energy stocks as potential defense against the declining value of money. The geopolitics of U.S.-China relations remain key to market expectations and returns. American Exceptionalism, with a Caveat.

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April 5, 2021

The Market Balance Sheet

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In our view a clear-eyed understanding of the bull and the bear cases may aid key portfolio decisions. After the Suez Saga: Implications for a Globalized Economic System. What Divergent Transatlantic Growth Means for U.S. Investors.

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