Financial Perspectives
 

Market news

November 29
Market Analysis

Recent U.S. consumer and durable goods activity is strong, but a new viral surge could slow what’s expected to be an otherwise busy holiday season. Get the latest insights from our investment strategists in this week’s Market Analysis.

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2021 Investment outlook: 3 things to watch

We’re keeping an eye on three topics that are likely to have an impact on markets, the economy and investors.

Understanding potential tax law changes
November 23, 2021

A variety of proposals currently under consideration could result in a significant alteration to the nation’s tax laws. How might it impact you?

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How COVID continues to impact the markets and economy
October 20, 2021

With COVID-19 cases on the rise again in the U.S., learn how the markets are responding and what risks investors must continue to navigate.

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How will inflation impact investors in 2021?
November 10, 2021

Inflation is on track this year to notch the largest annual spike in consumer prices since 1990. Here’s what investors need to know.

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Daily market analysis

November 29 | 12:01 p.m. CT

Market update:

After Friday's sell-off spurred by emerging COVID variant concerns, the S&P 500 is up 1.5% in afternoon trading today following a statement from President Biden who said economic lockdowns are not needed at this time. “If people are vaccinated and wear their masks, there’s no need for lockdowns,” the president said at a news conference on Monday. Biden also stated there would be no new travel restrictions. U.S. equities are due for some consolidation. The S&P 500 is up 22.3% for the year after Friday’s pullback, with all 11 sectors in positive territory and nine up 15% or more. The historical longer-term annual average return of the index is approximately 10.5%, suggesting that a pullback is warranted and within the normal ebb and flow of an upward-trending market.

Our take:

Consider a modest emphasis on equities, specifically large-size U.S. companies relative to international developed equities and core investment grade bonds, to provide broad sector representation to the economic recovery. Diversified portfolios should maintain modest bond exposure to U.S. corporate credit and non-agency, mortgage-backed securities within non-taxable strategies. We also emphasize opportunities in lower quality municipal bonds, reflecting improving state and local fundamentals. In certain objectives with larger allocations to fixed income, consider a modest preference for high yield securities and strategies benefiting from a steepening yield curve and rising inflation expectations.

Latest news & updates

Global equity markets tumble amid new COVID variant concerns
November 26, 2021

The stock market lost ground today on renewed coronavirus concerns surrounding the emerging omicron variant. Our investment strategists consider the implications for markets and investors in this situation analysis.

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Inflation rises at fastest pace in 30 years
November 10, 2021

Inflation accelerated 6.2% in October compared to a year ago – increasing at a pace not seen in more than 30 years. Learn what this may mean for markets, the economy and your investments.

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The infrastructure package takes center stage
November 9, 2021

Congress approves $1.2 trillion in spending for broadband, highways, bridges and railways – the largest infrastructure plan since President Eisenhower’s interstate highway program.

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Fed announces tapering asset purchases to start later this month
November 3, 2021

Citing strengthening fundamentals, the Federal Reserve announced a timeline today for gradually reducing monetary aid to the economy. The Fed also left low interest rates unchanged, and signaled patience regarding potential rate hikes next year.

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Balancing opportunities and risks in today’s market
October 27, 2021

Learn which 4 key factors could have the biggest impact on stock prices during the final months of 2021, according to Eric Freedman, Chief Investment Officer, U.S. Bank Asset Management Group.

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The debt ceiling debate comes to a head
October 13, 2021

Congress approved an increase to the debt ceiling limit through December 3. Learn where things go from here.

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Federal Reserve to taper bond purchases
October 13, 2021

With the Federal Reserve signaling its intent to start dialing back stimulus measures aimed at supporting economic recovery, investors are increasingly focused on potential market reactions to shifting Fed policy.

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Is economic recovery on schedule or at risk?
September 22, 2021

The U.S. has transitioned from the most dramatic short-term recession in history to the fastest annual growth rate in nearly 18 years. What obstacles do we face on our way to a full economic recovery and how far off is it?

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How are interest rates affecting bond prices in 2021?
September 21, 2021

Is the time right for investors to consider taking on more risk in their bond portfolios? Watch the video and read our article to learn more.

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Is a market correction coming soon?
September 17, 2021

The S&P 500 has bounced back in spectacular fashion since 2020’s pandemic-induced recession – gaining 100% through mid-2021 – sparking questions in the minds of some investors about a possible market bubble.

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The markets and the Biden administration
September 17, 2021

We take a look at how the markets have fared so far and what to expect going forward.

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How we analyze the economy

The economy doesn’t just move in a straight line. Our Health Check assesses its direction and how fast it’s moving.

U.S. Bank Global Health Check

Media mentions

11.23 | CNBC | Article

Stock futures decline as rising rates continue to unnerve investors

“It’s certainly a story of more rotation,” said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.

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11.10 | Bloomberg | Podcast

The Latest On Inflation, Crypto, And Market Bubbles

Lisa Erickson, Senior Vice President & Co-Head of the Public Markets Group at U.S. Bank Wealth Management, discusses the markets, inflation, and investing.

Listen now

11.10 | Marketplace | Article

Inflation is at a 30-year high

Part of the problem is that firms are all experiencing the same supply chain issues, according to Eric Freedman at U.S. Bank Asset Management Group.

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Investment outlook

2021: Fourth Quarter

“We are in a transitional time period, with the world adjusting to a persistent pandemic, potential changes to central bank policy that has been mostly pro-growth and markets digesting dogged inflationary pressures. As we begin the year’s final quarter, however, we retain a positive outlook for diversified portfolios and economic growth,” says Eric Freedman, Chief Investment Officer, U.S. Bank Wealth & Institutional Asset Management.

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