FUNDAMENTALLY DRIVE Strong market returns this year have raised questions about their quality. Are they just due to easy money and fiscal profligacy? Earnings this year have handily exceeded investor expectations due to strong operating leverage, and the regional performance has tracked relative earnings growth. As shown below, U.S. equities have delivered the strongest returns...

SLOWING BUT SUSTAINABLE GROWTH The momentum continues under this remarkable recovery, with strong economic growth and profitability that have driven the equity rally. These gains have some investors wondering when the “good times” will end. Global growth is expected to peak at over 6.5% in the third quarter. For the full-year 2021, growth is expected...

On Tuesday, August 10th, the U.S. Senate passed a $1 trillion bipartisan infrastructure bill on a 69-30 vote. The Infrastructure Investment and Jobs Act focuses on investment in roads, railways, bridges, and broadband internet among other things. Assuming the bill passes in the House and is signed into law, how could this impact your portfolio...

REDUCING SENSITIVITIES A mid-year slowdown has not yet appeared in the global economy or equity markets. But we have seen a notable drop in interest rates, which is curious in the face of hotter than-expected inflation reports. As shown below, rates have fallen steadily since a peak at the end of the first quarter, for...

SEEING THE WHITES OF INFLATION’S EYES Debating whether the Federal Reserve (Fed) will “fire” against oncoming inflation is a fitting analogy as America turns 245. Troops defending Bunker Hill* during the early stages of the American Revolutionary War were told not to fire until they saw the “whites of the eyes” of opposing forces. Federal...