“It’s Time” – Imagine Dragons Key Takeaways August saw a slight increase in bond yields across the curve and continued strengthening of the economy. Fed Powell confirmed the likelihood of “tapering” the Fed’s monthly asset purchases by year end in his comments from Jackson Hole. Powell also reiterated his expectation that inflation will prove transitory. […]
“Up & Up” – Coldplay Key Takeaways Bond yields fell during the month on news suggesting some slowing in the recovery from the pandemic. Despite supply constraints that continue to affect production across numerous industries, both here and abroad, the 6.5% annualized real GDP figure was impressive, although slightly below expectations. The resurgence of Covid-19 […]
Re-opening Theme – An Opportunity to Exit Client’s Exposure to Oil Maple Capital used the prevalent re-opening theme in the equity market as an opportunity to eliminate our client’s exposure to the oil commodity in most portfolios. In our view, investors are not being properly compensated for assuming the rising risk of long-term volume declines […]
Quarter in Review • Equity markets continue to establish new records as corporate earnings and consumer confidence recover. • The Fed has begun discussing when and how to begin pulling back on stimulus but it will be a long process. • Supply constraints due to the pandemic are straining many industries and elongating delivery times. […]
“Higher Power” – Coldplay Key Takeaways The Fed’s rhetoric shifted in June as Powell’s post-FOMC comments suggested the removal of some of the stimulus measures that have been in place. There is a bit more concern around the trajectory of inflation. Several FOMC members now see a rate hike in 2022 as more likely, and […]
“Slow & Steady” – Of Monsters & Men Key Takeaways Like last month, bond yields were relatively unchanged even as the economy continues to heat up, equity markets continue to rally, and inflation measures creep higher. Investors are left to debate whether the most recent signs of inflation will persist or are just transitory due […]
“Here Comes the Sun” – The Beatles Key Takeaways Bond yields had a relatively quiet month despite the number of strong economic reports out during the month, declining 9 to 12 basis points, mostly on the back end of the curve. The Fed signaled they will stay the course with regards to their accommodative monetary […]
Quarter in Review • Equity markets are rallying as the economy begins the process of normalizing after the unprecedented shutdowns of 2020. • Loose monetary policy has now been assisted by massive fiscal policy to provide a boost to all segments of the economy. • Some of Maple’s picks did not work as well this […]
“Anticipation” – Carly Simon Key Takeaways Intermediate and long-term bond yields continued their ascent in March. Bond yields are rising for all the right reasons- economic activity is improving, fiscal policy is taking the baton from monetary policy, and financial conditions are supportive. There is widespread anticipation for higher inflation in the short term, but […]