KEY TAKEAWAYS Last week, the 10-year Treasury yield fell below the 3-month yield for the first time since 2007. Long-term yields have been suppressed by the Fed’s patient stance and international demand. We expect solid fundamentals to push the 10-year yield back...
COMPASS CHANGES No changes. INVESTMENT TAKEAWAYS Expectations for solid but slower growth in the U.S. economy and corporate profits support our year-end 2019 fair value target for the S&P 500 of 3000.* We maintain our slight preference for value due to attractive...
ECONOMY SOUND ECONOMIC DATA IN FEBRUARY AMID GLOBAL UNCERTAINTY U.S. economic data were sound in February, even as confidence fell amid uncertainty from global trade and political headwinds. The Conference Board’s Leading Economic Index (LEI), an aggregate of ten...
KEY TAKEAWAYS February’s job growth was disappointing, but it followed the biggest two-month gain since 2016. Job growth and modestly rising wages remain strengths of the current economy. We don’t see signs of February’s jobs report impacting growth expectations or...
KEY TAKEAWAYS Small cap stocks have performed well so far in 2019; however, we believe the environment is getting tougher. Large caps may take the baton and sustain leadership as small cap performance potentially enters a weaker phase. Small and large cap stocks may...
KEY TAKEAWAYS Following such a strong rally since the December 24 lows, a pullback is reasonable to expect. We expect additional stock market weakness beyond last week’s more than 2% decline to be modest. Fundamentals remain sound, valuations are reasonable, and most...
