DoubleLine Deputy CIO Jeffrey Sherman takes a look at the macro landscape and markets in this portion of DoubleLine’s Closed-End Fund webcast recorded July 25, 2023. Mr. Sherman begins his macro recap with a rundown of central bank policy rates before moving on to topics including whether the Federal Reserve’s inflation-fighting moves have made market conditions restrictive enough (3:51), the economy’s Goldilocks sweet spot and how long it could last (8:41), the tightening of credit conditions (13:00) and what a decline in same-store sales might reflect about the overall economy (17:48). He then wraps up the macro section with a review of inflation metrics (19:27), the impact of the strength of the labor market (28:00) and market expectations for the end of the hiking cycle and a possible cut (30:21). “I don’t believe unless we’re absent some significant deterioration in the economy, and I mean a meaningful deterioration,” notes Mr. Sherman, “would you see a Fed cut in 2023.”
Mr. Sherman’s market coverage includes a look at volatility (31:39), year-to-date fixed income performance and potential allocation opportunities (37:07) in a “world that actually can generate some positive rates of return.”
As DoubleLine’s Deputy Chief Investment Officer, Jeffrey Sherman oversees and administers DoubleLine’s Investment Management sub-committee coordinating and implementing policies and processes across the investment teams. He also serves as lead portfolio manager for multi-sector and derivative-based strategies. Mr. Sherman is a member of DoubleLine’s Executive Management and Fixed Income Asset Allocation Committees. He can be heard regularly on his podcast “The Sherman Show” (Twitter @ShermanShowPod, ShermanShow@Doubleline.com) where he interviews distinguished guests, giving listeners insight into DoubleLine’s current views. In 2018, Money Management Executive named Jeffrey Sherman as one of “10 Fund Managers to Watch” in its yearly special report. Prior to joining DoubleLine in 2009, Mr. Sherman was a Senior Vice President at TCW where he worked as a portfolio manager and quantitative analyst focused on fixed income and real-asset portfolios. He was a statistics and mathematics instructor at both the University of the Pacific and Florida State University. Mr. Sherman taught Quantitative Methods for Level I candidates in the CFA LA/USC Review Program for many years. He holds a B.S. in Applied Mathematics from the University of the Pacific and an M.S. in Financial Engineering from the Claremont Graduate University. Mr. Sherman is a CFA® charterholder.