Each quarter, in the midst of earnings season, we write a market bulletin focused on U.S. corporate profitability.
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.
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?
What are the bright spots in fixed income?
Our view over the past few quarters has been that EURUSD should be rangebound, as the cyclical outperformance of the US economy is offset by the eurozone’s relatively better balance of payments position.
EURUSD should be rangebound
Investment strategies for a late-cycle environment
Last year, buybacks were all the rage; this year, the pace of share repurchases has slowed, but the pace of mergers and acquisitions (M&A) has accelerated.
This greater economic stability should bolster international earnings expectations, halting the decline seen over the past 18 months.
Learn how J.P. Morgan partners with E&F clients to examine their requirements and meet their investment objectives.