FLGV News and Press, Franklin Liberty U.S. Treasury Bond From 01/11/21

The new Administration's tax proposals, in year one, total some $3.9 trillion, according to Moody's Analytics estimates. Yields on munis sank to 1.14%, which is their lowest since 1979. Also, the municipal bond spread to Treasuries is near historic lows. Yields have gone up somewh...

Growth projections, employment expectations and consumer data may all experience short-term volatility. Build long-term forecasts around the implementation and distribution of a successful vaccine. The Fed's key focus is understanding how the labor force is changing - and investors sh...

A long history of extremely low yields in Japan suggests that low yields do not necessarily map to low returns. Amid the dramatic sell-off in risk assets in March 2020 as the global pandemic took hold, and again in September 2020 when equity markets pulled back sharply, government bon...

As our latest Asset Allocation Outlook discusses in detail, we expect profit growth will accelerate, and the improvement in fundamentals should bode well for risk markets and cyclical assets in particular. We remain overweight equities in our multi-asset portfolios and select areas of...

Every asset seems to be soaring in demand or price, since there is so much cash sloshing around the system, thanks to the Federal Reserve and the Treasury printing so much new cash in support of various Congressional stimulus packages since last March. For the most part, this money wa...

The yield curve looks pretty good. Long-term rates still are recovering. The expected date of the first short-term rate hike also appears to be coming closer. For further details see: December 2020 Yield Curve

The 10-year breakeven inflation rate returned to its 2018 level this week. The higher rate could mean people may think inflation will return soon – and the odds are it will. Economists argue that inflation expectations tend to be self-fulfilling. So, if the market sees infl...

The TIPS rate along with a minimally higher 10-year is declared proof positive the Fed has been successful at its inflation engineering when there's everything here (including oil, too) to contradict that assessment. Inflation expectations right now are the highest in years while at t...

Investors who have heavy exposure to the U.S. dollar via bonds, money market funds, and the like, may need to reset their portfolios before inflation wrecks their value. Similarly, those who hold stocks because they believe "TINA" (there is no alternative) shouldn't assume they will b...

Large cap growth and mid-cap growth saw the return differentials narrow between it and "value" the last 12 weeks, but the longer-term return differential has been substantial favoring growth since 2017. The 12-week total return in mid-cap in Q4 '20 was 22% and in small-cap it was 28.6...