Within non-U.S. developed equities, Japan and the U.K. are two markets where compelling valuations and, in our view, easy-to-beat growth expectations are setting up a strong backdrop.

We see the new regime of greater volatility playing out: higher interest rates, stagnating activity and structural forces set to push inflation back up. Flip-flops in the market narrative make that clear. 

Stay on top of the changing market environments by learning from their historical parallels.

PMC Weekly Market Brief - September 18, 2023

U.S. Treasury yields rose once again, as U.S. economic growth remains strong. U.S. Federal Reserve officials indicated that monetary policy is sufficiently restrictive, while emphasizing the need to monitor incoming data.

One way to do this is by adding to investment grade corporate bonds, which have relatively longer durations than the broader fixed income market. They are also currently yielding close to 6%, and defaults are expected to remain low.

We‘re in an unprecedented macro environment that is driving constant shifts in the market narrative: from hopes of avoiding recession to fears good macro news could be bad for markets in just a few months. We see the market moving with data as if we’re in a normal business cycle.