For some high-yield investors, the U.S. homebuilding sector may represent a crossroads for the higher-rated portions of the market. Yet, as concerns about an economic slowdown mount, investors may be facing a highly-cyclical sector that generally appears fully valued and possibly on the precipice of weakening economic conditions.
In this edition of our quarterly outlook, Robert Tipp, CFA, Chief Investment Strategist explains that the secular conditions that fueled the recent gains in fixed income haven’t changed and, in fact, could intensify going forward in “Policy Uncertainty—Perfect for Bonds.” Next, Nathan Sheets, PhD, Chief Economist and Head of Macroeconomic Research, looks at the divide between the global manufacturing and services sectors in “Assessing the Two-Track Global Economy—Manufacturing vs. Services.”
The issue of increased wealth inequality has accompanied the recovery in U.S. household balance sheets to the point where the Top 10% of U.S. households now hold 70% of the wealth, while the Bottom 90% account for just 30%. This paper examines the underlying drivers of the widening wealth distribution and its potential economic effects.
The European Central Bank (ECB) delivered a broad-based easing package in its policy meeting on Thursday. The package included a wide array of measures, most notably a cut in the key policy rate deeper into negative territory and a resumption of asset purchases (APs).
India may be well placed to replicate China’s rise over the last three decades but the chance of success rests on India being able to drastically increase domestic savings and economy-wide productivity. The current situation, with China losing cost competitiveness and being in the crosshairs of a trade conflict, offers an opening for India.