Principal Knowledge Center
The latest insights from our experts on attitudes, behaviors and trends that impact long-term financial security. Thought leaders from across the globe provide data analysis, research and perspective on the economy, investment management, retirement security and more.
The stock market rally for which we advocated last month lasted 2 weeks and rose a paltry 3.6% before another downdraft. Investors may be starting to worry that something is seriously wrong.
The yield curve may invert over the next year or so as the Fed tightens policy rates. Concerns about global growth and U.S. trade policy may cause inversion sooner.
U.S. growth is breaking out of its eight-year doldrums and decoupling from the softer pace of the rest of the world. The Fed is actively normalizing policy ahead of other central banks. This means the Fed will forge ahead with raising the FFR and reducing its bond holdings.
There are two key central bank meetings this week: the Federal Reserve meeting ends Wednesday, June 13 and the European Central Bank (ECB) meets on Thursday, June 14. Both have the potential to move markets.
With markets riding a rollercoaster of risk and recovery the last week of May, it’s good to note many positive economic signals. Nevertheless, the dynamics of world growth have shifted.
Labor markets in the United States, the Eurozone, and Japan are tightening rapidly and wage gains are beginning to pick up. The outlook is for more of the same.