Financial Perspectives
 

Market news

May 14
How Biden’s tax policy changes could affect you

A variety of proposals are being considered that could result in a dramatic alteration in tax policy. Here’s how Biden’s tax policy could affect you.

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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.

How will interest rates affect bond prices in 2021?

Is the time right for investors to consider taking on more risk in their bond portfolios?

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How will inflation impact investors in 2021?

Could an overheated economy trigger inflation? Our investment strategists weigh in.

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Updated May 14
How Biden’s tax policy changes could affect you

A variety of proposals are being considered that could result in a dramatic alteration in tax policy. Here’s how Biden’s tax policy could affect you.

Learn more

Daily market analysis

 

May 17 | 3:25 p.m. CT

Market update:

The S&P 500 closed down 0.25% at 4,163.29 on Monday. The Consumer Price Index (CPI) accelerated sharply in April. Core CPI, which excludes fuel and food, posted the largest monthly increase since 1981 and the largest year-over-year increase since 1996. While consumers’ inflation expectations rose, as measured by the University of Michigan confidence survey, the surge may prove to be transitory, with measures of “stickier” prices yet to show substantial acceleration. According to Bloomberg, five categories accounted for 60 percent of monthly price increases: Used cars, rental cars, lodging, airfare and dining out.

Our take:

Consider a modest emphasis on equities, specifically mid-sized U.S. companies, as this provides broad sector representation to the economic recovery. Additionally, U.S. mid-cap stocks have historically generated superior returns relative to risk versus both large- and small-cap equities. Relative to international developed equities, consider a tilt toward U.S. large-cap stocks. 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 market news & updates

 

May 17
Market analysis

Stock price volatility has increased as indications of inflation emerge on the horizon.

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May 12
Is a market correction coming soon?

Equity markets have reached record highs after last year’s brief but deep decline in the wake of a global pandemic, raising concerns over a potential stock market bubble. Is a market correction coming in 2021?

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May 5
Is the landscape changing for SPAC markets?

If you’re considering investing in a Special Purpose Acquisition Company (SPAC), here are some new perspectives to keep in mind.

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Apr. 28
Fed holds firm on low interest rates

The Federal Reserve sounded a cautiously optimistic tone on the economy today while reaffirming ongoing stimulus measures.

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Apr. 21 (Updated)
How the COVID vaccines affect the economy and the markets

What should investors prepare for as the COVID vaccine is distributed through 2021?

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Mar. 18
Financial relief under the American Rescue Plan

How the latest stimulus provisions may impact your bottom line.

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Media mentions

5.11 | CNBC | Video

Tech opportunities off the pullback

Lisa Erickson, U.S. Bank, and Steve Milanovich, Tech Advisor LLC, join ‘Power Lunch’ to discuss with CNBC’s Melissa Lee and Courtney Reagan.

Wath video

5.11 | Reuters | Article

TREASURIES-U.S. yields rise as inflation worry simmers

"(The Fed) have made it very clear that they think it is transitory and ongoing price increases will continue to be transitory but we are not going to know if they are right about that until much further down the road," said Bill Merz, head of fixed income research at U.S. Bank Wealth Management in Minneapolis.

Read article

5.06 | Money | Article

Will the Stock Market Keep Climbing? Here's How to Prepare for Whatever the Future Holds

Bill Northey, senior investment director at U.S. Bank Wealth Management, expects the strong recovery to continue for the rest of the year and into 2022, as well as for the impressive corporate earnings to continue.

Read article

Source: Center for Disease Control, May 6, 2021.

Investment Outlook
2021: Second Quarter

“The confluence of vaccinations, pro-growth public and monetary policies, increased mobility by consumers and increased spending could generate inflationary pressures for central banks to ponder in the months ahead,” says Eric Freedman, Chief Investment Officer, U.S. Bank Wealth Management.

Get the outlook