Highlights

  • 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.
This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed are as of October 2021 and may change based on market and other conditions.

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