In our monthly fixed income market outlook, Rick Rieder, BlackRock’s Chief Investment Officer of Global Fixed Income, discusses how investors can easily lose sight of meaningful news items amidst the market noise, so we focus on what we think are the three most significant investment themes today: the industrial sector rebound, the U.S. monetary policy transition, and that fiscal policy may pick up the reins from the Federal Reserve. Further, contrary to the popular narrative, the monetary-to-fiscal policy transition is important because more normal interest rate and yield curve dynamics are likely to promote a better functioning financial transmission mechanism. Finally, the new market regime is profoundly influenced by secular demographic trends and technological innovation, two longstanding themes of keen interest to us, so we examine precisely how.
Contributions of the sub-components of the Morgan Stanley Global Trade Leading Indicator
Source: Bloomberg, data as of January 2017
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