Wednesday, November 6, 2019

Investment Perspectives: Economic Data, Limits of Monetization, and Equities Enter Profitable Period

Key Takeaways

  • Reading the mixed signals in economic data.
  • A look at what's behind TOMO, POMO, and other acronyms in the Fed's toolbox.
  • Nearly record levels of sidelined cash could provide the fuel for multiple expansion, increasing market potential.

In this month's issue:
Making Sense of Hard and Soft Economic Data - Mark Luschini
An immense amount of data is available for market participants to get an idea about the direction of the economy.

TOMOs, POMOs, QE, and the Limits of Monetization - Guy LeBas
The interest rate and fixed markets have gone from being a story about inflation (1960s–1980s), to growth (1990s–2000s), to central bank intervention (2008–2017), and now one about market plumbing. That is not exactly a panacea for your friendly neighborhood fixed income strategists who have followed this progression, but here is a primer on open market operations for investors.

Hello, November: Equities Enter Historically Profitable Period - Greg Drahuschak
After more than three months and multiple attempts, the Standard & Poor’s 500 Index (S&P 500) in October finally set new intraday and closing highs on indications of trade-negotiation progress.

You can read the full Investment Perspectives here.