Financial Perspectives
 

Market news

Market Analysis
December 6, 2021

Valuations remain fair as estimated earnings continue to inch higher. Get the latest insights from our investment strategists in this week’s Market Analysis.

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2021 Investment outlook: 3 things to watch

We’re keeping an eye on three topics that are likely to have an impact on markets, the economy and investors.

Understanding potential tax law changes
November 23, 2021

A variety of proposals currently under consideration could result in a significant alteration to the nation’s tax laws. How might it impact you?

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How COVID continues to impact the markets and economy
November 30, 2021

Uncertainty surrounding the Omicron coronavirus variant is spurring market volatility. Does this put the economy's recovery at risk?

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How will inflation impact investors in 2021?
November 10, 2021

Inflation is on track this year to notch the largest annual spike in consumer prices since 1990. Here’s what investors need to know.

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Daily market analysis

December 8 | 3:51 p.m. CT

Market update:

The S&P 500 gained for a third consecutive day to close up 0.31% at 4,701.21 as investors appeared to look beyond the COVID-19 Omicron threat. The number of workers who left their jobs due to dissatisfaction or better opportunities elsewhere fell last month by 4.7%, the Labor Department reported on Wednesday in its Job Openings and Labor Turnover Survey, also known as JOLTS. The number of job openings accelerated 4.1% to just below its all-time high. The JOLTS report is closely watched by the Federal Reserve for signs of labor market tightness.

Our take:

Consider a modest emphasis on equities, specifically large-size U.S. companies relative to international developed equities and core investment grade bonds, to provide broad sector representation to the economic recovery. Diversified portfolios should maintain modest bond exposure to U.S. corporate credit and non-agency, mortgage-backed securities within non-taxable strategies. We also emphasize opportunities in lower quality municipal bonds, reflecting improving state and local fundamentals. In certain objectives with larger allocations to fixed income, consider a modest preference for high yield securities and strategies benefiting from a steepening yield curve and rising inflation expectations.

Latest news & updates

China update: Could real estate market risks spread?
December 2, 2021

Is there a risk the financial fallout from China’s real estate market could spill over to the broader global economy? Eric Freedman, Chief Investment Officer, assesses the situation.

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Federal Reserve to taper bond purchases
December 3, 2021

Federal Reserve Chairman Jerome Powell expects policymakers to discuss wrapping up the taper of monthly asset purchases earlier than originally planned — opening the door to potential interest rate hikes by summer 2022, if not sooner.

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Global equity markets tumble amid new COVID variant concerns
November 26, 2021

The stock market lost ground today on renewed coronavirus concerns surrounding the emerging omicron variant. Our investment strategists consider the implications for markets and investors in this situation analysis.

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Inflation rises at fastest pace in 30 years
November 10, 2021

Inflation accelerated 6.2% in October compared to a year ago – increasing at a pace not seen in more than 30 years. Learn what this may mean for markets, the economy and your investments.

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The infrastructure package takes center stage
November 9, 2021

Congress approves $1.2 trillion in spending for broadband, highways, bridges and railways – the largest infrastructure plan since President Eisenhower’s interstate highway program.

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Fed announces tapering asset purchases to start later this month
November 3, 2021

Citing strengthening fundamentals, the Federal Reserve announced a timeline today for gradually reducing monetary aid to the economy. The Fed also left low interest rates unchanged, and signaled patience regarding potential rate hikes next year.

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Balancing opportunities and risks in today’s market
October 27, 2021

Learn which 4 key factors could have the biggest impact on stock prices during the final months of 2021, according to Eric Freedman, Chief Investment Officer, U.S. Bank Asset Management Group.

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The debt ceiling debate comes to a head
October 13, 2021

Congress approved an increase to the debt ceiling limit through December 3. Learn where things go from here.

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Is economic recovery on schedule or at risk?
September 22, 2021

The U.S. has transitioned from the most dramatic short-term recession in history to the fastest annual growth rate in nearly 18 years. What obstacles do we face on our way to a full economic recovery and how far off is it?

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How are interest rates affecting bond prices in 2021?
September 21, 2021

Is the time right for investors to consider taking on more risk in their bond portfolios? Watch the video and read our article to learn more.

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Is a market correction coming soon?
September 17, 2021

The S&P 500 has bounced back in spectacular fashion since 2020’s pandemic-induced recession – gaining 100% through mid-2021 – sparking questions in the minds of some investors about a possible market bubble.

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The markets and the Biden administration
September 17, 2021

We take a look at how the markets have fared so far and what to expect going forward.

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How we analyze the economy

The economy doesn’t just move in a straight line. Our Health Check assesses its direction and how fast it’s moving.

U.S. Bank Global Health Check

Media mentions

12.5 | CNBC | Article

Dow jumps 650 points as Monday rally accelerates, investors look past omicron threat

U.S. Bank Wealth Management’s Tom Hainlin said investors are also focused on what the terminal interest rate will be, and added he expects it to be lower that what investors are pricing in.

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11.23 | CNBC | Article

Stock futures decline as rising rates continue to unnerve investors

“It’s certainly a story of more rotation,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.

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11.10 | Bloomberg | Podcast

The Latest On Inflation, Crypto, And Market Bubbles

Lisa Erickson, Senior Vice President & Co-Head of the Public Markets Group at U.S. Bank Wealth Management, discusses the markets, inflation, and investing.

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Investment outlook

2021: Fourth Quarter

“We are in a transitional time period, with the world adjusting to a persistent pandemic, potential changes to central bank policy that has been mostly pro-growth and markets digesting dogged inflationary pressures. As we begin the year’s final quarter, however, we retain a positive outlook for diversified portfolios and economic growth,” says Eric Freedman, Chief Investment Officer, U.S. Bank Wealth & Institutional Asset Management.

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