Channel 11: Stocks Melted Up, Bonds Carried on Amid Shutdown Worry

DoubleLine Portfolio Manager Ken Shinoda reviews a remarkable September during which stocks soared to new highs, government shutdown concerns loomed, and bonds continued to offer steady returns. He dives into the standout performance of information technology, communication services and growth stocks while also highlighting the resurgence of megacapitalization stock leaders and the ongoing debate between market-cap- and equal-weighted strategies.

Mr. Shinoda also explores the global landscape, noting the strong performance of emerging markets, shifting dynamics of the U.S. dollar and impressive rally in precious metals like gold and silver. He ties it all together with macroeconomic themes such as the Federal Reserve’s “risk-management” cut, slowing job growth and what a “low hiring, low firing” regime could mean for the economy.

Finally, Mr. Shinoda zeroes in on fixed income, explaining why the 2s30s steepener still makes sense. He calls out rich spreads in corporates, the relative value in securitized credit and why Agency mortgages have quietly been a big winner. With the Fed likely to keep cutting and volatility lurking in October, Mr. Shinoda makes the case for moving out of T-bills and back into bonds – before the easy carry trade disappears.