Latest Stories

Washington in the Spotlight Amid Continued Highs for Stocks

By David O'Malley | February 27, 2017

Stocks continue to grind to new highs as it seems like any sell-off has been met with significant buying. Last Friday’s market activity was a great example, as the market shook off early declines to end the trading day higher. Bonds also rallied last week as the odds of a Federal Reserve (Fed) interest rate increase in March has fallen to below 40%. The market seems to be pushing the Fed to not increase rates in March, despite the recent comments by key Fed officials.

Political Uncertainties and Resilient Markets

By Zhiwei Ren | February 23, 2017

The first two months of 2016 were challenging times. Global risk assets, especially commodities, were in a free fall and the market was pricing in a global recession and possible hard landing in China. Compared to 2016, the 2017 financial market is having a great start, with all major risk assets performing well year-to-date. The S&P 500 Index has not seen a 1% drop in over 90 trading days, and 3-month realized volatility has not been this low since 1995.

The Value Trap

By David O'Malley | February 21, 2017

In this short trading week, I will be watching to see if we get any more information on the Federal Reserve’s (Fed) current thinking when they release the January meeting minutes this Wednesday. If U.S. economic data remains strong, I expect the Fed to increase interest rates by 25 basis points at the March meeting. Also of interest this week is the expected release of Berkshire Hathaway’s earnings and Warren Buffett’s annual letter on Saturday, which to me is a must read.

Changes in Store for Fannie Mae & Freddie Mac

By Mark Heppenstall | February 16, 2017

The Trump Trade has emerged as new vernacular across the investment world since Election Day. In just three months, the Trump Trade has led to the Dow Jones Industrial Average breaking 20,000, a S&P 500 Index market capitalization in excess of $20 trillion and—maybe most remarkably—a hawkish Federal Reserve Chair, Janet Yellen.

Yellen and Inflation Highlight the Week Ahead

By David O'Malley | February 13, 2017

U.S. stocks reached new highs last week amid the continued slow process of cabinet appointments in Washington and the heightened noise associated with the new administration. Business optimism was fueled by the announcement that the administration’s tax plan will be released in the next few weeks, most likely at the state of the union address on February 28.

Could 2017 Mark the Return of the Tech IPO?

By Trevor M. Williams | February 9, 2017

2016 marked the slowest year for global technology initial public offerings (IPOs) as measured by both number and value in at least the last five years. The combination of uncertain market conditions, high private valuations and ample cash hordes allowed many companies to wait until public markets offered a more favorable environment. After a slow start, global technology IPOs recovered slightly in the second half of the year. We’re now entering into an environment that looks to be highly favorable for companies seeking to go public.

What is the Consensus Market View?

By David O'Malley | February 6, 2017

Last week was fairly uneventful from a market data perspective, as all eyes continued to be glued on Washington and the almost constant coverage of the Trump administration. On the economic data side, the unemployment report confirmed the continued creation of new jobs. Stocks and bonds gained on the jobs report, as job growth without inflation helped support asset valuations.

Yield-Hungry Investors Facing a Conundrum

By James Faunce | February 2, 2017

Institutional yield buyers in the fixed income credit markets have been waiting a long time for Treasury rates and absolute yields to increase. Since rates hit lows last summer, it appeared that the move higher in yields was finally going to materialize, particularly following the election results in which 10- and 30-year Treasury rates rose almost 80 basis points (bps). However, the very strong tightening in credit spreads has flattened the industrial credit curve quite substantially. As a result, despite the back-up in long Treasury rates, the all-in yield for long industrial credit has been largely offset.



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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.

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