The unusual combination of challenges currently facing financial markets prompts investors to search for historic parallels. We find that today’s monetary and fiscal landscape looks a lot like that of Europe and the United Kingdom in the late 19th century. At that time, Europe had no effective monetary or fiscal policy with which it might
A modest pace of economic recovery has helped to keep the corporate default rate below historical averages and provides favorable conditions for high-yield bonds. Lower-rated bonds may offer higher yields in return for more risk.
European stocks may have a chance of recovery if political leaders can make progress on resolving the debt issue, but analyzing earnings will be critical for investors to navigate risk.
Bond markets in Europe and emerging markets face a host of challenges in the years ahead.
In today’s post-housing bubble environment, the long-awaited recovery has failed to build a solid foundation. The high unemployment rate, declines in household income, and significantly tighter credit conditions have left both existing and new home sales close to recessionary levels in the United States.
With its meteoric rise to become the world’s second-largest economy, China is an engine of global growth and is currently expanding much faster than developed nations still struggling to recover from the recession. Although today China is facing headwinds such as nagging inflation, Putnam sees investment opportunities in many industry sectors.
Developments in European sovereign debt markets have taken a significant turn recently, and the risk that the crisis could affect financial markets has increased.
Inflation has popped back up in the headlines after a long absence. In January, prices measured by the Consumer Price Index (CPI) were up 1.6% from a year earlier, the biggest increase in eight months.
China’s GDP soared 11.9% in the first quarter of 2010. And that growth is likely to continue to have a significant impact on certain commodities that China must import. How does China’s growth affect natural resources? China imports a significant share of the world’s commodities. China ranks third in the world in thermal coal reserves.