With the S&P 500 nearing a 10% drawdown from its Jan. 27 closing high, DoubleLine Portfolio Manager Eric Dhall and Macro Asset Allocation Strategist Ryan Kimmel survey the week ended March 27. They start with a stock market with multiple stock sectors (0:30) in the red, energy the only positive sector for the week and month-to-date. Fixed income (3:43) was flat on the Bloomberg Aggregate investment-grade benchmark, albeit with rates higher in the belly of the Treasury curve. Commodities (6:14) as tracked by the BCOM were flat, with the energy sector actually down while agricultural products and industrial metals ended the week in the green.
With the caveat that most macro reports (12:42) still have yet to catch up with reality post Iran war, Ryan looks beneath the relatively benign aggregate readings of S&P Global PMI goods and services reports for March and sees higher costs being passed along to consumers. Looking ahead to the Good Friday-abbreviated week of March 30-April 3, Eric is keen to see the March BLS payroll and unemployment reports (due Friday), “the first report that will take into account all the disruption we’ve seen” since the outbreak of Iran conflict.
Mr. Dhall joined DoubleLine in 2013. He is a Portfolio Manager on the Macro-Asset Allocation team where he works with portfolio management performing analysis and trading for derivatives-based and multi-asset strategies. Mr. Dhall’s research and analysis has contributed to the team’s development of DoubleLine’s smart-beta suite of strategies. Prior to DoubleLine, he worked at Capital Group performing quantitative analysis in fixed income. Prior to Capital Group, Mr. Dhall was an instructor in finance at the UCLA Anderson School of Management and a research instructor at the UCLA Samueli School of Engineering. Previous to that, he worked in International Finance at Gulf Machinery Company. Mr. Dhall holds a B.S. in Physics with a secondary emphasis in Business from the University of California, Berkeley and an M.S. in Financial Engineering from the UCLA Anderson School of Management.
Mr. Kimmel joined DoubleLine in 2013. He is a Strategist on the Macro Asset Allocation team and Fixed Income Asset Allocation (FIAA) and Global Asset Allocation Committees. He also co-hosts DoubleLine’s weekly Minutes (Twitter @DLineMinutes, Minutes@Doubleline.com) podcast. Prior to DoubleLine, Mr. Kimmel was a Proprietary Trader at Gelber Group, trading currencies for the Foreign Currency Group. Prior to that, he was an Investment Banking Analyst in Morgan Stanley’s Mergers and Acquisitions Group. Mr. Kimmel holds a B.A. in Business Economics from the University of California, Los Angeles (UCLA), and holds an MBA from the Anderson School of Management at UCLA.
