U.S. Financials: Catch a Falling Knife?
Despite low valuations, U.S. financial stocks will likely remain a “value trap” until greater clarity emerges as to the ultimate magnitude of losses facing the financial system.
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Large Firms Stepping Off the Share-Buyback Treadmill
After years of supporting share prices and EPS growth with increasingly aggressive share-repurchase programs, companies are showing signs of buyback fatigue.
The Fed’s Reflationary Effort: Will It Work And What Are The Risks?
While the Fed is committed to a policy of reflation, market conditions pose significant obstacles to success and there are also serious inflationary risks associated with this policy.
Municipal Bonds – Waters Are Roiling in this Once-Sleepy Sector
Deleveraging, insurance woes, and liquidity concerns deliver pitfalls and opportunities to taxable investors.
As the Cycles Turn
A look at what history tells us to expect as the earnings, business, and stock market cycles converge.
High-Yield Bonds: Be Selective
While we remain bearish on high-yield bonds in general, experienced and talented managers should have a plethora of profit opportunities as spreads widen and defaults rise.
The Dénouement Begins
We continue to view U.S. equities as overvalued based on both valuations and the difficult economic environment, but advocate tactical bets within U.S. equities rather than a substantial underweight.
The Pause That Refreshes?
Narrow market participation and weak financial shares may spell more trouble after the November jolt.
The Great and Powerful Fed?
While equity markets celebrate Fed rate cuts, underlying conditions (and thus our long-term outlook) are little changed.
Opportunistic Credit Funds Hoping for Fire-Sale Prices
Managers go shopping in the aftermath of the credit conflagration.