Latest Stories

Uncertainty for Stocks

By David O'Malley | November 28, 2016

Over the past few months, I have had a strong conviction that bond yields in the U.S. were going to rise due to both fundamental and technical factors. Rates have risen even faster than I would have expected given the market reaction to the U.S. Presidential election. The increase in yields has wiped out more than $1 trillion from the value of bonds globally since this summer.

Improving Economic Data

By David O'Malley | November 21, 2016

U.S. economic data continues to improve and last week’s strong reports were no exception, suggesting an uptick in fourth quarter growth and overall U.S. economic expansion. Several major firms have recently updated estimates for U.S. growth.

A Tale of Two Tantrums

By Mark Heppenstall | November 17, 2016

U.S. interest rates have been trending higher since July and gathered additional steam following last week’s surprising election results. However, despite the dramatic spike post-election, the increase in rates so far has yet to catch up with the move experienced during the taper tantrum in 2013.

Fiscal Policy Uncertainty

By David O'Malley | November 14, 2016

Over the next few weeks the details and implications of the Trump Presidency will come into greater focus. At a minimum, expect tax cuts for individuals and corporations and significant infrastructure spending to be unveiled. Both of these policy initiatives will significantly add to the deficit in the short-term.

Who Benefits When Generic Drug Prices Go Up?

By Trevor M. Williams | November 10, 2016

Over the last 24 months, a number of high-profile generic drug price increases have dominated the news cycle—along with the barrage of negative election-related stories— in part due to the rising proportion of healthcare costs being shouldered by employees.

President-Elect Trump and the Markets

By David O'Malley | November 9, 2016

The election results are in with Republicans controlling both houses (with slimmer majorities) of Congress and the Presidency. As I watched it all unfold into the early morning hours, it became clear the historic and unexpected election results caught pundits and the markets off guard.

Tightening Labor Market

By David O'Malley | November 7, 2016

The economic highlight of last week was the October employment report. The report confirmed the continued tightening of the labor market. During the month, 161,000 new jobs were added, which was slightly below the six month average of 179,000, and the unemployment rate declined from 5.0% to 4.9%.

Looking for Value in Add-Ons

By Justin Kaplan | November 3, 2016

In previous posts, I have discussed the rising valuations and increased use of equity to finance deals in the U.S. private equity markets. This week’s chart shows yet another trend that has emerged as valuations continue to rise. Add-on acquisitions have been on an upward trajectory since approximately 2006 and have reached a decade high as a percent of buyout transactions, reaching 64% in 2016.



Disclosure Statement

The material provided here is for informational use only. The views expressed are those of the author, and do not necessarily reflect the views of Penn Mutual Asset Management.

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This material is for informational use only. The views expressed are those of the author, and do not necessarily reflect the views of Penn Mutual Asset Management.  This material is not intended to be relied upon as a forecast, research or investment advice, and it is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.

Opinions and statements of financial market trends that are based on current market conditions constitute judgment of the author and are subject to change without notice.  The information and opinions contained in this material are derived from sources deemed to be reliable but should not be assumed to be accurate or complete.  Statements that reflect projections or expectations of future financial or economic performance of the markets may be considered forward-looking statements.  Actual results may differ significantly.  Any forecasts contained in this material are based on various estimates and assumptions, and there can be no assurance that such estimates or assumptions will prove accurate.

Investing involves risk, including possible loss of principal.  Past performance is no guarantee of future results.  All information referenced in preparation of this material has been obtained from sources believed to be reliable, but accuracy and completeness are not guaranteed. There is no representation or warranty as to the accuracy of the information and Penn Mutual Asset Management shall have no liability for decisions based upon such information.

High-Yield bonds are subject to greater fluctuations in value and risk of loss of income and principal. Investing in higher yielding, lower rated corporate bonds have a greater risk of price fluctuations and loss of principal and income than U.S. Treasury bonds and bills. Government securities offer a higher degree of safety and are guaranteed as to the timely payment of principal and interest if held to maturity.

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