View the PDF Version here.  Equities: The outlook for U.S. equities remains mixed. Valuations continue to be stretched to historically high levels, sparking comparisons to bubbles that have occurred throughout market history. While the Fed insists that recent inflationary pressures will prove temporary, inflation could last longer and become more problematic during the remainder of...

View the PDF Version here.  Equities: U.S. Equities: By our measures the U.S. equity markets remain significantly overvalued as they continue to hover around all-time highs which is indicative of lower expected returns on average over the longer-term.  While Fed Chair Powell indicated at the June FOMC meeting that the time had come to begin...

Subscribe Download the PDF version here. Equities: U.S. Equities: While Fed Chair Powell was able to assuage fears of inflation taking root in the shorter term, concerns regarding more persistent inflation in the U.S. remain.  Should this manifest in a more meaningful way it may signal a tighter Fed monetary policy including the potential for...

Subscribe Download the June View From the EDGE® here. Equities: U.S. Equities: The U.S. equity market outlook is a bit more neutral currently given the tug of war between the positive impact of the global economic rebound and concerns about whether robust economic growth will prove to be inflationary, thereby prompting the Federal Reserve to...

Subscribe Download the pdf here.   Equities: U.S. Equities: Major U.S. equity market indices continue to reach all-time highs as well as record levels of overvaluation by our measure. However, even at elevated valuations, monetary and fiscal stimulus remains supportive. In addition, high-yield credit spreads continue to tighten even further. Our research model is indicating...

View the pdf version here.  Equities: U.S. Equities: Major U.S. equity market indices continue to reach all-time highs as well as record levels of overvaluation by our measure. However, even at elevated valuations, monetary and fiscal stimulus remains supportive. In addition, high-yield credit spreads remain narrow. A steepening global yield curve is also a positive...

Subscribe Download the pdf View from the EDGE here.  SUMMARY Japanese equities remain fairly valued and may benefit from improved growth prospects supported by sustained monetary and fiscal stimulus. U.S. equity markets remain overvalued by our measures; however, monetary and fiscal stimulus remains supportive. Should recent increases in short-term interest rates in Emerging Markets continue,...

Subscribe SUMMARY Japanese equities are reasonably valued and continue to benefit from the Bank of Japan’s aggressive monetary policy. U.S. equity markets have never been more overvalued in our analysis; however, they continue to benefit from monetary and fiscal stimulus. Although European and Emerging Market equity valuations have also become stretched, better growth prospects are...

November saw a sharp rise in global and U.S. equities thanks to several positive news events, including COVID-19 vaccine trials. The MSCI World Index was up 12.21%, and the pan-European Stoxx 600 index was up 16.74%. In the U.S., the Dow Jones gained 11.84% for its biggest monthly gain since 1987, the S&P 500 rose 10.75%, and the Nasdaq Composite was up 11.8% (Source: Bloomberg). This week, U.S. stocks looked past a disappointing jobs report and headed for records on the hopes of additional fiscal stimulus coming through Washington, D.C.