Investment Outlook


Economic Outlook Highlights

September 2017     |  Economic Outlook Highlights   (PDF/New Window)
September 2017    |  Economic Outlook Highlights  (PDF/New Window) September 2017 | Economic Outlook Highlights
A hurricane-related growth recovery in coming months will be supported by reconstruction, replacement demand and deferred spending by businesses and consumers, following losses shaving an estimated 0.5%-0.75% from a third-quarter pace now put at about 2%.
View an archive of Economic Outlook Highlights, brief summaries of the economic and financial market outlook along with issues affecting stocks and bonds.

Briefings and Commentaries

October 13, 2017 – Market Comment (PDF/New Window)
October 13, 2017 | Market Comment (PDF/New Window) October 13, 2017 | Market Comment
A potent brew. Stocks chalked up a fifth straight week of gains and another record high at mid-week on fresh interest-rate optimism and a strong start to third-quarter earnings reports in breezing through what, historically, has been the most difficult time of the year for the market. Third-quarter earnings were up more than 8% for the 32 S&P 500 companies reporting through Friday, according to estimates by Bloomberg Financial News, Inc. Even more important support, at this early stage of the earnings-reporting cycle, came from a bond rally sending the benchmark 10-year Treasury yield to a two-week low, accommodating S&P 500 valuations at a 13-year high. Propelling the bond market was the mid-week release of the September 20 FOMC minutes revealing unexpectedly deep divisions over policy implications of subdued inflation and news Friday of another month of surprisingly modest inflation in the CPI’s "core" component (i.e., excluding food and energy). The latest interest-rate decline triggered a rotation of strength toward yield-sensitive real estate, consumer staples and utilities from more highly charged materials, financial services and economically sensitive, "big-ticket" consumer goods during the early part of the month, amid prospects for stronger growth, higher inflation and a less sanguine interest-rate outlook. The bond rally also encouraged an added move along the bond market’s credit-risk "curve," leaving the yield premium on investment-grade corporate issues to comparable Treasury securities at a 10-year low.
View an archive of briefings and commentaries that provide detailed analyses of the current economic climate and investment conditions.

Gary Schlossberg

Senior Economist

Gary SchlossbergAs senior economist, Gary Schlossberg is responsible for assessing the economic environment and providing input to the equity and fixed-income portfolio management teams at Wells Capital Management.

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