All told, we think the prospects that President Trump will push through his policy agenda in the first year look tenuous at best.
An improving growth picture gives fodder to the Fed to increase rates this year – possibly several times. It should also be a signal for capital preservation and liquidity investors.
When looking past the noise, we believe the data have continued to confirm our forecast for 2.2% core inflation in 2017.
Does détente mean the greenback has already peaked?
The Fed kept rates on hold despite growing confidence that inflation will hit its 2% target.
It’s important to consider which variable would dominate real estate-related asset prices in a potential new paradigm: higher rates or stronger growth.
Many view the Dow’s rise above 20,000 as a sign of optimism about the long-term economic growth outlook for the U.S. Yet the bond market is sending a different signal.
With the inauguration of the 45th president imminent and the market’s high expectations for policymaking, what is realistic for investors to expect from Washington in 2017?
CPI jumps. Trump may accelerate the trend.
Investors should take note of the low absolute yields which many “cash equivalent” assets offer, in both absolute and relative terms.