Lara Rhame, Chief U.S. Economist, Managing Director, Investment Research and Ryan Caldwell,Chief Investment Officer, FS Chiron Funds at FS Investments discuss their global market outlook covering: inflation, equity markets, and China.
Consumer prices rose roughly 5% in May 2021 (year over year), the highest jump in more than a decade. While some explain the sharp inflation as a temporary aftershock of 2020’s shut down and government intervention, others believe rising inflation rates will be here for the long run. Rather than focus solely on consumer prices, FS zeros in on wages, as well as commodity price trends as key indicators. While Rhame acknowledges that there is still a lot of uncertainty around inflation and policy, FS predicts that persisting globalization factors will ease inflation headed into 2022. According to forward rates and bond pricing, markets so far seem to be rather unaffected from the current state of heightened inflation.
U.S. Equity markets are still facing uncertainty from the Fed, and high valuations, but overall have experienced strong growth and a boost on the path back to normalcy. Rhame notes that last year’s theme-driven equity performance has settled down as the market moves towards mid-cycle, but that there may still be early cycle opportunities in Europe and certain emerging markets. FS investments is an asset manager focused around providing investors access to alternative sources of income and growth. Founded in 2007 as Franklin Square Capital, FS set out to help investors build better portfolios. FS Investment’s diverse suite of products includes credit funds, interval funds, REITs, Alternative credit, commercial real estate, and multi-strategy liquid alternatives.
To learn more, register and watch FS Investments webcast, It’s complicated: A PM and Economist talk global markets.
Markets are moving fast – if you don’t stop and look around, you might miss it. The economy, financial markets, and policy are changing more rapidly than in any previous business cycle. We offer an opportunity to hear from two experts on their global outlook. We’ll discuss:
- Why interest rates are falling in the face of rising inflation and strong growth?
- What’s next for equity markets as they remain hyper-sensitive to yield curve dynamics?
- What are the implications of the two Chinas?
Register Now Lara Rhame is a Managing Director in the Investment Research group and serves as Chief U.S. Economist at FS Investments, where she focuses on macroeconomic financial market analysis to inform and develop the company’s long-term views on the economy, investment trends and issues facing investors.