Since we started this series of portfolio manager insight videos in 2016, I’ve noticed that there’s always a theme that resonates across disciplines each quarter. It’s interesting to me because we record these sessions on entirely different schedules and don’t consult one another. But nonetheless, we end up with similar themes. This quarter is no different; the commonality being the word “interesting.”
The most interesting development during the second quarter, from my point of view, is the widening gap between survey data and hard economic data. In other words, the difference between how businesses and individuals feel about the economy and where the market is actually headed. We have never, historically, seen a gap this large. Will hard data catch up to the survey data? That’s one of the things I’ll be watching.
It’s also an interesting environment as bond investors. The economy is improving gradually, inflation is picking up, the stock market is very optimistic, credit spreads have driven dramatically lower and yields are somewhat higher than we’ve seen in the past.
All of that equates to one big challenge for bond investors, and that’s the topic of my video below.
The opinions expressed are those of Dave MacEwen and are no guarantee of the future performance of any American Century Investments fund.
This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.