Economic Outlook. Presented: April 22, Keith B. Hembre, CFA Chief Economist & Chief Investment Strategist, FAF Advisors.

Similar documents
2014 Annual Review & Outlook

Economic and Financial Markets Monthly Review & Outlook Detailed Report. June 2014

2018 Investment and Economic Outlook

U.S. Bancorp Reports Net Income for the First Quarter of 2010

Market & Economic Update

Economic and Financial Markets Monthly Review & Outlook Detailed Report January 2018

Interest rates: How we got here and where we re going

RBC Strategic Asset Allocation Models

Investment Management Philosophy

KP Retirement Path 2050 Fund: KPRHX. KP Retirement Path 2055 Fund: KPRIX. KP Retirement Path 2060 Fund: KPRJX. KP Large Cap Equity Fund: KPLCX

KP Retirement Path 2050 Fund: KPRHX. KP Retirement Path 2055 Fund: KPRIX. KP Retirement Path 2060 Fund: KPRJX. KP Large Cap Equity Fund: KPLCX

Investment Perspectives. From the Global Investment Committee

Interest rates: How we got here and where we re going

Fund Information. Partnering for Success. SSgA Real-Life Insight

80% Equity / 2% Fixed Income / 16% Alternative / 2% Allocation Strategy

Perspective on Economic Expansions

Economic and Financial Markets Monthly Review & Outlook Detailed Report October 2017

First Investors California Tax Exempt Fund Ticker Symbols Summary Prospectus May 1, 2018 Class A: FICAX

Global Investment Committee Themes

1.00% % None None

First Trust Intermediate Duration Preferred & Income Fund Update

Graduate Seminar: ETF Advisor Roundtable: Building a Resilient ETF Portfolio

Goldman Sachs Trust (the Trust ) Goldman Sachs Asset Allocation Portfolios Class A, B, C, Service and Institutional Shares of Goldman Sachs Balanced

Wealth Management Perspectives

Cliff Notes: The Investment Environment Beyond the Fiscal Cliff

Asset Class Review APR. 24, Master Limited Partnerships

SUPPLEMENT DATED MAY 4, 2018 TO THE SUMMARY PROSPECTUSES FOR: FIRST INVESTORS GOVERNMENT FUND DATED JANUARY 31, 2018

RBC Strategic Asset Allocation Models

ETF Allocation Portfolio ETF Diversified Income Portfolio

MARKET INVESTMENT IMPLICATIONS OF THE NEW TAX LAW: BONDS AT A GLANCE PERSPECTIVES FIXED INCOME KEY TAKEAWAYS LPL RESEARCH.

THE PRUDENTIAL SERIES FUND

Investment Insights. International Strategy: Understanding Currency Movements

Class A: IEAAX Class C: IEACX Class W: IEAWX. SunAmerica Income Explorer Fund Explore Your Future

Wealth Management Perspectives

YieldShares High Income ETF. Summary Prospectus May 1, Principal Listing Exchange for the Fund: NYSE Arca, Inc. Ticker Symbol: YYY

q merrill edge guided investing strategy profile CIO Moderately Conservative ETF Core Tax Aware

NORTHERN FUNDS AFTER-TAX RETURN RANKINGS

Short exposure to US equities

CLICK TO EDIT MASTER TITLE STYLE Market Perspective

INVESTMENT REVIEW AMBER CARDEN PRIVATE CLIENT ADVISOR CHARLES D SHEPHERD, CFA PORTFOLIO MANAGER

Forum Portfolio Investment Policy Statement

Summit Equities, Inc.

Nationwide Fiduciary Series SM Important Disclosures

Franklin Fund Allocator Series

An Active Manager s Take on REITs and Rising Rates

Q Performance Report

UC Retirement Savings Plans Fund Descriptions (click on fund name to reach the specific fund description)

KP Retirement Path 2045 Fund KPRGX

PACE Select Advisors Trust. Annual Report July 31, 2017

PALM TRAN, INC./ATU LOCAL 1577 PENSION FUND INVESTMENT PERFORMANCE PERIOD ENDING MARCH 31, 2011

Hypothetical Economic and Financial Scenario Analysis for 2012

Wealth Strategies Monitor

Investment Perspectives. From the Global Investment Committee

Risk-Efficient Investment Portfolios from AlphaSimplex Group. Strategies that put risk management first

BLACKROCK VARIABLE SERIES FUNDS, INC. BlackRock Global Allocation V.I. Fund (the Fund )

85.3% 0.3% 3.3% 6.5% 0.5% 3.4% U.S. PENSION FUNDING UPDATE. U.S. corporate pension funding decreased by 0.3% in December 2017

JANUARY 25, 2019 Market Commentary by Scott J. Brown, Ph.D., Chief Economist

Altegris/AACA Real Estate Long Short Fund RAAAX RAAIX RAANX

Market Analysis / Second Quarter 2016 I NDEPENDENT W EALTH M ANAGEMENT

Altegris/AACA Opportunistic Real Estate Fund

WILL YIELDS KEEP RISING?

Preliminary Prospectus Dated May 5, 2017 ADVISORS DISCIPLINED TRUST 1796 COHEN & STEERS CALIFORNIA MUNICIPAL CLOSED-END PORTFOLIO, SERIES

Diversify Your Portfolio with Senior Loans

University of Regina Master Trust. Financial Statements

Modern diversification for all markets

Schwab Diversified Growth Allocation Trust Fund (Closed to new investors) Institutional Unit Class As of June 30, 2017

Closed End Funds: Access vs. alpha

INVESTMENT PLAN. Sample Client. For. May 04, Prepared by : Sample Advisor Financial Consultant.

Non-traded Alternatives for Individual Investors

UC Retirement Savings Plans Fund Descriptions (click on fund name to reach the specific fund description)

Beyond the usual suspects: Diversified sources of income

The Impact of Falling Energy Prices

JANUARY 4, 2019 Market Commentary by Scott J. Brown, Ph.D., Chief Economist

PROSPECTUS. BlackRock Variable Series Funds, Inc. BlackRock Global Allocation V.I. Fund (Class III) MAY 1, 2017

Semiannual Report December 31, 2017

Horizon Active Asset Allocation Fund Advisor Class: HASAX Institutional Class: HASIX Investor Class: AAANX

The Deutsche Asset Management municipal bond suite

As we enter 2014, global economic growth seems to be on stronger footing across the world as the U.S. Fed is poised to begin

August 22,

Supplement dated June 1, 2018 to the current Summary Prospectus, as may be supplemented

Quarterly High Yield Market Summary

PIMCO Variable Insurance Trust

Economic and Market Outlook

6/11/12 Spanish bank rescue announced. 6/6/12 China cuts interest rates, fueling best day for U.S. stocks in 2012

December 2014 Economic Outlook. All data as of November 30, 2014 unless otherwise noted.

Sanford C. Bernstein Fund, Inc. Tax-Aware Overlay A Portfolio Ticker: Class 1 SATOX; Class 2 SATTX

February 22, You should read this prospectus and retain it for future reference.

Preferred and Capital Securities Fund: Bank Fundamentals Haven t Been This Strong in Decades

Portfolio Optimization Conservative Portfolio

DESIGNED FOR TODAY S AND TOMORROW S INVESTMENT CHALLENGES

Why fight the Fed and the market? The case for loans as rates rise.

Horizon Active Income Fund Advisor Class: AIHAX Institutional Class: AIRIX Investor Class: AIMNX

What Institutional Investors are Looking for from Hedge Funds. CTA-EXPO Chicago September 2015

Wealth Management Perspectives

Cohen & Steers California Municipal Closed-End Portfolio, Series

Schwab Indexed Retirement Trust Fund 2040

DECEMBER 7, 2018 Market Commentary by Scott J. Brown, Ph.D., Chief Economist

Fixed Income Perspective: Treasury Inflation Protected Securities

Pioneer Multi-Asset Ultrashort Income Fund

Short exposure to US equities, used as a risk hedge. Exposure to commodities

Transcription:

Economic Outlook Presented: April 22, 2010 Presented by: Keith B. Hembre, CFA Chief Economist & Chief Investment Strategist, FAF Advisors Investment products, including shares of mutual funds, are not deposits or obligations of, or guaranteed by, U.S. Bank or any of its affiliates, nor are they insured by the Federal Deposit Insurance Corporation, or any other government agency. An investment in such products involves investment risk, including possible loss of principal. This information represents the opinion of U.S. Bank and is not intended to be a forecast of future events, a guarantee of future results, or investment advice. It is not intended to provide specific advice or to be construed as an offering of securities or recommendation to invest. Opinions are subject to change.

Key Questions for 2010 U.S. growth recovery: how fast and durable? When will the labor market participate? Will inflation kill the recovery? How will we return to a sustainable policy stance?

2010 Growth: V or Not V Which will it be? Deeper recession faster recovery Housing bust comparisons negates prior cyclical

Inventory Contribution 5% 3% Business Inventory Contribution to GDP Growth (By Quarter) Q4 2009 Contribution = 3.9% 1% -1% -3% -5% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: U.S. Department of Commerce Additional information is provided on the Disclosures page

Huge Damage Done During the Past Two Years Job Losses Relative to Past Recessions (Millions) 0-1 -2-3 -4-5 -6-7 -8-9 2008-2009 2001 1990-1991 1981-1982 1980 1973-1975 Source: U.S. Department of Labor Additional information is provided on the Disclosures page

Sustained Inflation Unlikely Absent an Acceleration in Labor Costs 16 14 12 10 8 6 4 2 0-2 -4-6 Nonfarm Unit Labor Costs and CPI Ex. Food and Energy (Year/Year Percent Change) 1958 1963 1968 1973 1978 1983 1988 1993 1998 2003 2008 Source: U.S. Department of Labor Additional information is provided on the Disclosures page CPI Ex Food & Energy Jan 2010 Unit Labor Costs Dec 2009

Bank Credit Still Contracting 8000 U.S. Commercial Banks Loans and Leases Outstanding ($ Billions) 7000 6000 2/24/10 5000 4000 3000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Source: Federal Reserve Additional information is provided on the Disclosures page

What About This Exit Strategy? 4% 2% 0% -2% -4% -6% -8% Federal Budget Deficit Relative to GDP -10% FY 2010 Est -12% 1971 1975 1979 1983 1987 1991 1995 1999 2003 2007 Source: Congressional Budget Office Additional information is provided on the Disclosures page

Questions?

NOT Disclosures NOT A DEPOSIT NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY This information represents the opinion of U.S. Bank and is not intended to be a forecast of future events or guarantee of future results. It is not intended to provide specific advice or be construed as an offering of securities or recommendation to invest. Not for use as a primary basis of investment decisions. Not to be construed to meet the needs of any particular investor. Not a representation or solicitation or an offer to sell/buy any security. Investors should consult with their investment professional for advice concerning their particular situation. The factual information provided has been obtained from sources believed to be reliable, but is not guaranteed as to accuracy or completeness. U.S. Bank is not responsible for and does guarantee the products, services or performance of its affiliates and other third party providers. U.S. Bank and its representatives do not provide tax or legal advice. Each individual s tax and financial situation is unique. Individuals should consult their tax and/or legal advisor for advice and information concerning their particular situation. Past performance is no guarantee of future results. All performance data, while deemed obtained from reliable sources, are not guaranteed for accuracy. Indexes shown are unmanaged and are not available for investment. The S&P 500 Index is a capitalization-weighted index of 500 widely traded stocks that are considered to represent the performance of the U.S. stock market in general. The MSCI EAFE Index includes approximately 1,000 companies representing the stock markets of 21 countries in Europe, Australasia and the Far East. The S&P GSCI Index is a composite index of commodity sector returns that is broadly diversified across the spectrum of commodities. The MSCI U.S. REIT Index represents approximately 85% of the U.S. equity REIT universe. The Merrill Lynch High Yield Master Index consists of fixed rate, coupon bearing bonds with an outstanding par that is greater than or equal to $50 million, a maturity range greater than or equal to one year, and a rating less than BBB-/Baa3, but not in default. Barclays Capital Municipal Bond Index is comprised of fixed rate, investment grade, tax-exempt bonds with maturities of one year or more. Equity securities are subject to stock market fluctuations that occur in response to economic and business developments. International investing involves special risks, including foreign taxation, currency risks, risks associated with possible differences in financial standards and other risks associated with future political and economic developments. Investing in emerging markets may involve greater risks than investing in more developed countries. In addition, concentration of investments in a single region may result in greater volatility. Investing in fixed income debt securities are subject to various risks, including changes in interest rates, credit quality, market valuations, liquidity, prepayments, early redemption, corporate events, tax ramifications, and other factors. Investment in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer term debt securities. Investments in lower rated and non rated securities present a greater risk of loss to principal and interest than higher rated securities. Investments in high-yield bonds offer the potential for high current income and attractive total return, but involve certain risks. Changes in economic conditions or other circumstances may adversely affect a bond issuer s ability to make principal and interest payments. There are special risks associated with an investment in commodities, including market price fluctuations, regulatory changes, interest rate changes, credit risk, economic changes, and the impact of adverse political or financial factors. Investments in real estate securities can be subject to fluctuations in the value of the underlying properties, the effect of economic conditions on real estate values, changes in interest rates and risks related to renting properties, such as rental defaults. Hedge funds are speculative and involve a substantially more complicated set of risk factors than traditional investments in stocks or bonds, including the risks of using derivatives, leverage and short sales, which can magnify potential losses or gains. Restrictions exist on the ability to redeem units in a hedge fund. Structured products are subject to market risk and/or principal loss if sold prior to maturity or if the issuer defaults on the security. Investors should request and review copies of Structured Products and Pricing Supplements and Prospectuses prior to approving or directing an investment in these securities.