Commentary

Inflation Blues: Fed Keeps Rates Near-Zero, Officially Adopts Average Inflation Targeting

Fed maintained rates at near-zero, while also updating its summary of economic projections; now expecting a shallower economic contraction, but a slower recovery thereafter.

Commentary

Quarterly Market Outlook: Walking a Fine Line

Markets have been walking a fine line, with a still-struggling economy on one side and hopes for a COVID-19 vaccine breakthrough on the other. Heading into the fourth quarter, there are both encouraging signs and cause for caution.

Commentary

Brexit Is Back: The Endgame For Investors

The risk of a “no deal” Brexit and the potential economic harm that accompanies it increased last week.

Commentary

Rotation

The U.S. stock market hit pause in early September, as investors took a harder look at market overconcentration and frothy sentiment. Meanwhile, global economies may be entering a new phase, and the Federal Reserve’s newly announced inflation policy is likely to keep U.S. rates lower for longer.

Commentary

Federal Reserve Raises the Inflation Hurdle

The Federal Reserve has changed its inflation policy. Here’s what it may mean for markets.

Commentary

Crossroads: Shifting Tides in Stock and Labor Markets

Rotation away from the market’s prior momentum darlings continues. Friday’s jobs report had bullets for both the optimists’ and pessimists’ case studies. And improving productivity, partly due to work-from-home trends, could persist as a positive economic driver.

Commentary

Big Tech Shares Dent Stock Market Recovery

Major tech-focused shares fell after helping drive the fastest stock market recovery in history.

Commentary

Should Muni Bond Investors Be Concerned About Climate Shocks?

Prior to Hurricane Laura making landfall in Louisiana and the wildfires in California and parts of the West igniting, the U.S. had already experienced 10 different billion-dollar natural disasters this year.

Commentary

Why Own Bonds When Yields Are So Low?

Bond investors face a challenging environment. The federal funds rate is back near zero, the 10-year Treasury yield remains stuck in a 0.5%-to-0.75% range, and inflation-adjusted (real) yields are deep in negative territory.

Commentary

Stock Market “Inequality” Hides A Big Change

The recent imbalances in the stock market can lead to vulnerability; rebalancing portfolios may be valuable to help balance exposure to U.S. capitalization-weighted benchmarks relative to international stocks.

Commentary

Federal Reserve Announces Inflation Goal Shift: What It Means for Investors

The move away from a precise 2% target likely means short-term rates will stay lower for longer.

Commentary

High Hopes: S&P 500 Hits All-Time High Amid Pandemic/Recession

In a speedy round-trip, the S&P 500 hit an all-time high last week; meaning the rally since March is now an “official” bull market.

Commentary

Bond Real Yields: What’s Happening Beneath the Surface

Treasury bond yields have been drifting quietly lower since early June. But there is more going on beneath the surface than it might seem at first glance. Real yields—nominal yields less inflation—have declined steeply into negative territory. While nominal yields are near record-low levels from the deep economic decline, inflation expectations are picking up.

Commentary

Confidence Is Everything: 3 Things May Shake It

Confidence matters; faith in a brighter future drives risk taking, fueling growth through investment and consumption.

Commentary

Schwab Market Perspective: Is the Worst Behind Us?

Although certain high-frequency data haven’t improved markedly, the threat of the virus has started to recede.