Tim Paulson, Global Market Strategist, Lord Abbett met with Julie Cooling, Founder & CEO, RIA Channel, to discuss what’s happening in global markets, and the implications of a flat yield curve.
“I think it’s important to distinguish between the market and economic implications,” says Paulson. Many investors fear that a flat yield curve is tied to a recession, while others see corporate earnings as another key indicator. Paulson acknowledges the recent run up in corporate debt, but also points to the run up in U.S. equities. “We don’t see any kind of systemic issues,” says Paulson on corporate grade debt.
To hear more on Lord Abbett and Tim Paulson’s views on the market, check out a recent podcast: The Investment Conversation: Where Active Management Makes a Difference.