What impact will the November 2020 Presidential elections have on the financial markets? When will an economic downturn occur? These are two questions that have been at the forefront of investors’ minds. These concerns will likely continue to grow, reaching a crescendo near next year’s election.
With the Federal Reserve (Fed) set to meet next week some investment banks have come out ahead of the meeting predicting at least three rounds of rate cuts by January 2020.
One of the major contributors to the 2008 credit crisis/financial crisis was the collapse of non-agency mortgage backed securitizations. In its aftermath, the business of non-agency mortgage origination and securitization by U.S. investment banks virtually ceased to exist.
While the risk of another consumer credit meltdown might be rising, the structure of the consumer credit market, particularly with respect to residential mortgage backed securities (RMBS), is fundamentally less vulnerable than it was in the 2005-2008 period.
Yields on McDonalds’ Euro-denominated bonds recently joined European sovereign debt in negative territory. It’s a headline writers dream (juicy burgers, not yields…customers and investors...
The discretionary sector struggled as did all growth and quality-oriented areas of the market in 2022. That was a classic re-set and a raging opportunity to add exposure.
The Institute for Supply Management’s monthly survey of purchasing managers came in below expectations for August, while the Bureau of Labor Statistics jobs report indicated that nonfarm payrolls expanded by only 142,000 jobs during the month (against expectations of 161,000 jobs).
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