View from the EDGE

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.

Subscribe   By: DeFred G. Folts III, Fritz, Managing Partner, Chief Investment Strategist & Eric Biegeleisen, CFA, Managing Director, Research, Portfolio Manager Download the View From the EDGE printer friendly version here. SUMMARY Japanese and Emerging Market equities continue to maintain positive outlooks due to relatively more attractive valuations and the continued steepening of their...

Subscribe The Printer Friendly View From the EDGE is available here. SUMMARY Following a challenging September, Japanese and Emerging Market equities remain attractive due largely to relatively better growth prospects as signaled by the continued steepening of their yield curve measures in both regions as well as relative undervaluation. U.S. equities are increasingly overvalued by...

Subscribe The printer friendly version of View From the EDGE is here. SUMMARY While Emerging Market equities remain attractive due in part to the weakening U.S. dollar, Japanese equities have joined in this attractive outlook. Beyond their relative undervaluation, Japanese equities are benefitting from tightening credit spreads, a steepening yield curve, and positive investor psychology....

Subscribe Download the printer friendly View From the EDGE® here. SUMMARY Emerging Market equities remain the most attractive of the global equity asset classes we model, due in part to the weakening U.S. dollar and easier credit conditions resulting from the extraordinary monetary stimulus provided by the Federal Reserve. U.S. equities also continue to benefit...