Broker Check
Integrated Insights - Week of August 24, 2020

Integrated Insights - Week of August 24, 2020

August 25, 2020

WIth political conventions taking center stage, this week's entry looks at the candidates views on the economy. BlackRock also weighs in on potential strategic adjustments given a post-Covid world.  The industries most affected by COVID have not recovered to pre-crisis levels, which may cause an increase in corporate defaults--it also may create opportunity in high yield bonds.

Here's what I'm reading this week:

Weekly Commentary -- Strategic views for a post-Covid world -- BlackRock

  • The Covid-19 pandemic has transformed the investment landscape in a matter of months, prompting a rethink of strategic asset allocation views.

  • Negotiations over a new U.S. fiscal package looked to have stalled. We still expect a sizable package, but risks of a no-deal outcome are growing.

  • Markets will focus on the annual Jackson Hole meeting for what potential policy framework changes might imply for the medium-term inflation outlook.

Summary of candidates views on economy, trade, & big tech -- Meeder Investments

Corporate Defaults Have Jumped -- Capital Group

  • Corporate defaults have jumped, but the default rate has been low for a very long time 
  • The market for lower rated companies is much less efficient, so there’s more opportunity to differentiate and find value

  • Especially over the long term, returns on high-yield bonds (BB/Ba and lower) can provide investors who are willing to take a little higher risk of loss a significant income boost