AAM Viewpoints: The Big Quit, Great Inflate, and the Viral Spiral: A Deadly Credit Cocktail or Mere Speedbumps?
Corporate credit quality has strengthened at a near unprecedented pace in 2021.
As we embark on the final two weeks of a challenging and unpredictable year, it seems the next year will resemble its predecessor, but with some unique and important differences.
Last December my Viewpoints article was titled, “Let’s Party Like Its 1999!” In that article we looked forward to 2021 as a year when the euphoria was similar to 1999.
After a relatively benign 4th quarter, characterized by a risk-on mentality, market uncertainty ramped up heading into year end on the heels of the recently identified omicron Covid variant closely followed by a hawkish inflation pivot by the Federal Reserve.
This past week witnessed a continuation of solid economic figures supporting the notion that the 3rd quarter slowdown scare is fading further into the rearview mirror.
As companies continue to grapple with higher costs associated with commodities and transportation, there is certainly chatter in the boardrooms around cost-saving strategies in order to preserve sales and margins.
This is a short follow up to our September commentary, “Emerging Markets are Undervalued.”
There is increasing chatter in the markets relating to a confluence of events that could lead to the reversal of our currently benign credit environment.
A highly anticipated earnings season is underway as equity markets balance an economic recovery that has been slowed by the delta variant with stretched valuations that need continued earnings growth to be supported at these levels.
Autumn often ushers in a period of heightened volatility for stocks and September statistically is the worst month for the market.
Over the past few years, we’ve written about trends in small businesses based on the National Federation of Independent Business (NFIB) Survey of Small Business Economic Trends.