In a late-cycle, rising interest rate environment, duration can be overlooked. But looking at the bond market today, might it be worth giving duration a second chance?
The new corporate bond factors implementation of 2019 might be a “longshot”.
With the U.S dollar having strengthened 6.6% in the last six months, investors are beginning to question whether the dollar has fundamentally changed direction after declining in 2017.
Momentum investing is a strategy which looks at relative trailing 6- and 12- month price performance when determining which stocks to overweight. 2018 has been a good year for momentum stocks, which are up an impressive 11.4%*.
The yield curve, specifically its potential inversion, has become one of the most trusted signals of impending economic turmoil.
From an economic standpoint, we believe that growth in the U.S. will remain above potential in the coming quarters, but it seems unlikely that the robust growth seen in 2Q18 will be sustained.
The performance of the US dollar significantly diverged from relative rate spreads