Striving for consistency in an increasingly uncertain world
  • Each market disruption provides the opportunity for companies to bring future demand forward and accelerate adoption of new technologies.
  • Businesses benefiting from secular growth trends have shown greater resiliency, leading to strong outperformance by growth stocks in the first half of 2020.
  • In our view, long-term success for growth managers requires an effective valuation framework, balance in portfolio construction, and a sharp focus on execution—including when to sell.
Municipal investors are caught between perfection and a pandemic

Investors looking for tax-exempt income in the municipal fixed-income markets are in a tough bind these days. Highly rated bonds, with very high prices and correspondingly low yields, are “priced for perfection.” Lower-rated bonds, from which investors may be able to source slightly more attractive yields, may be under more credit risk pressure given the pandemic and recession in the United States. The combination of low nominal yields and increasing credit risk puts municipal fixed-income investors in a challenging position.