Capital Market Outlook
February 18, 2020
IN THIS ISSUE
- Macro Strategy—Deflationary effects from the Coronavirus put the Fed back in play Already faced with below-target inflation, moderate real gross domestic product (GDP) growth and soft inflation pressures, the Federal Reserve has space to cut rates to preempt a worsening economic outlook caused by insufficient nominal GDP growth.
- Global Market View—Trouble for the Trifecta of U.S. Debt? The current state of household, federal government and business debt appears manageable for now, but we continue to monitor these areas of the economy for signs of financial excesses or imbalances.
- Thought of the Week—What the Coronavirus Means for Growth and Value—Growth could continue to outperform over the near term, but we favor a balanced approach to both styles as 2020 progresses, enjoying exposure to tactical opportunities within each.
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