Timely takes on markets and the economy.
Market Commentary content
Coupon income, not price appreciation, likely will be the main driver of total returns.
2022 Schwab Market Outlook
Persistent high-tide growth is likely to help float the global economy safely over the rocks of risks in 2022, despite waves of worries: COVID, inflation, shortages & rate hikes.
We expect a wave up in bond yields as central banks shift away from easy policies.
After a year of supply shortages, the global economy may be closer to the end of the supply chain problems than the beginning.
Earnings season has been stellar so far, although the growth rate is well off its prior quarter peak, with profit margins in focus looking ahead.
Services make up more of the economy, jobs, and the stock market. The time has come to focus on services data to get a sense of the overall economic picture.
The age of abundance has given way to an age of scarcity, while the pro-cyclical version of inflation may have given way to the counter-cyclical version.