- Loomis Sayles has lowered their growth expectations for the second half of 2021 as the uptick in Covid-19 cases has weighed on services, in-person business and consumer sentiment.
- Global and US credit have the potential to deliver positive excess returns in the months ahead.
- Developed market interest rates are expected to gradually drift higher, with the Fed leading the way sometime in mid-2023.
- Strong risk appetite and cyclical improvement in the global economy should eventually lead to a broadly weaker US dollar.
- The expansion phase of the credit cycle is typically favorable for equity performance. Early expansion could be a good buying point.
- Supply chain bottlenecks could last longer than anticipated and may result in higher inflation.