Active Insights

2023 Market Outlook and Opportunities

In this episode, Senior Market Strategist Rick Polsinello, Jr., CIMA® hosts a discussion with Senior Market Strategist Chris Galipeau, and Global Macro Strategist Jason Vaillancourt, CFA.

S&P 500 Index, earnings, and P/E multiple performance during U.S. recessions

Many investors believe that the U.S. is on the cusp of entering an economic recession. Our analysis looks at how the S&P 500 Index has performed during each U.S. recession since the mid-1950’s.

The ABCs of BDCs with Michael Petro, CFA

Chris speaks with Mike Petro, portfolio manager of the Putnam BDC Income ETF. Mike is responsible for Putnam's small-cap value and BDC (business development company) capabilities.

What's next for the traditional 60/40 portfolio

Volatility in both stock and bond markets persisted in Q3 2022, with equity markets making new year-to-date lows and interest rates reaching the highest levels since 2008. 2022 has also presented challenges for the traditional 60% equity/40% fixed income portfolio.

Today's convertible landscape with Rob Salvin

Guest host Rick Polsinello talks with Portfolio Manager Rob Salvin about opportunities in the convertible bond market.

Slowing economic growth and fixed income performance

As a follow up to the piece we published in July that focused on decelerating economic growth and equity returns, we thought it made sense to look at how some fixed income sectors fared during the same periods. We researched this concept to better understand the historical relationship between an economic slowdown, credit spreads, and total returns.

Consumer sentiment and forward market performance

In light of decades-high inflation, the Federal Reserve tightening monetary policy, and concerns about an economic slowdown, U.S. consumer sentiment has plummeted.. This year, sentiment is historically low, according to the University of Michigan Survey of Consumers.

Style and factor performance during economic deceleration

Investors are concerned about decelerating economic growth and what this could mean for future equity returns. We researched this question to understand the historical relationship between an economic slowdown, earnings degradation, and any subsequent style or factor performance.

Yield curve inversion and market performance

At its March meeting, the Federal Reserve raised the federal funds rate by 25 basis points. The central bank also indicated that this is likely the start of a tightening cycle, as policymakers attempt to dampen the elevated levels of inflation seen since the start of the pandemic.

Market performance during Fed tightening cycles

In this analysis we assess asset class performance during prior cycles of Federal Reserve monetary tightening.

A look at the Federal Reserve’s 2014 taper

With the Federal Reserve nearing a decision to begin tapering its asset purchases, we thought it would be beneficial to look at what occurred the last time the Fed reduced its asset purchases.

Post-recession market trends

How do different asset classes perform coming out of recession? Is there a drop off in performance in the second year of a recovery relative to the first year? In this analysis we look at asset class performance in the two calendar years after a recession ends.

A season for stock returns

Is there seasonality to equity market returns over time and, if so, is it repeatable, measurable, and significant? We turned to one of our favorite sources for market information, “The Stock Trader’s Almanac” to find the answers.

Tracking PMI data and forward equity returns

We believe real economic growth is likely to reach levels not seen in the United States since 1983–1984. Our best estimate is for real GDP to approximate 6.5% year-on-year growth in 2021.

What do yields reveal about inflation expectations?

Investors can monitor these relationships to understand the underlying drivers of nominal yields.

Growth, Value, and Recessions

What equity investment style performs best as the economy enters a recession?

A look at inflation and investment performance

Investors are concerned about rising inflation going forward. We researched recent history to better understand how different asset classes perform during periods of increasing core inflation as measured by the Personal Consumption Expenditure Core Price Index.

The January Barometer

Devised by Yale Hirsch in 1972, the January Barometer states that as the S&P 500 goes in January, so goes the year. The indicator has registered 10 major errors since 1950, for an 85.7% accuracy ratio.

U.S. dollar and trends in emerging markets

Studying market history may help provide a useful framework for investors as we navigate the recession of 2020. We looked back at the 5 recessions since 1980 as a guide.

Economic expansions and equity returns

What can history tell us about the length of economic expansions and recessions? And further, what can investors expect from the stock market during economic expansions?

Trends in small - and large-cap stocks during recessions

Studying market history may help provide a useful framework for investors as we navigate the recession of 2020. We looked back at the 5 recessions since 1980 as a guide.

Growth, Value, and Recessions

What style performs best as the economy enters a recession? What style performs best as the economy exits a recession?

S&P 500 Return Attribution

How have a handful of stocks impacted the year to date return of the S&P 500 index?