• Amidst a "wall of worry," including peak growth, the end of U.S. exceptionalism, first quarter ’21 earnings, infrastructure spending and taxes, COVID case counts surging in India and Fed policy concerns, Natixis held fast in its May model positioning.
  • The economy may be at peak momentum; however, this is not the same as peak growth. Even with lower growth momentum, the absolute level of growth is certainly well above trend. Even with softening momentum in the United States, the US will most likely continue to trend at a higher rate than its developed market peers.
  • The Fed remained steadfast that inflation will prove transitory in the near-term, and it will not be a longer-term issue. We continue to stress that while the Fed carries a dual mandate of price stability and full employment, all indications point to the idea that full employment is taking precedence over price stability.
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Performance data discussed represents past performance and is no guarantee of, and not necessarily indicative of, future results.

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