After covering positive market performance in the final week (Nov. 27-Dec. 1) of a very healthy November, DoubleLine Portfolio Managers Jeffrey Mayberry and Samuel Lau dive into the latest BIS paper on financial condition indices as the Topic of the Week (25:24). They go through the six indices that comprise the report, with a focus on the Goldman Sachs and Bloomberg indices that offer the most insight into U.S. economic performance.
In their market review, Jeff and Sam talk about November’s strong run in equities and fixed income, possibly assisted by Fed Chair Jerome H. Powell’s cautious comments on the economy at the beginning of the month. The S&P 500 (1:06) experienced broad-based gains with energy the only one of 11 sectors to finish in the red. Fixed income’s positive performance (4:11) was fueled by a rally in U.S. Treasury rates, and the Agg had its best month since May 1985. Commodities (8:29), as an asset class, did not participate in the boom. After taking Thanksgiving week off, there was a lot for MMM to cover in Macro Land (12:02), including the latest LEI print, labor numbers, home prices, a bumped-up Q3 GDP estimate and a PCE print reflecting strides in the Fed’s inflation fight. In the Fedspeak roundup (19:53), Jeff and Sam appreciatively note the clashing and evolving hawkish and dovish stances of Fed officials reflecting a range of opinions. Next week’s macro prints (34:53) will include the ISM services report and job numbers.
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Mr. Mayberry joined DoubleLine in 2009. He is a Portfolio Manager on DoubleLine’s strategic commodity strategy while working in portfolio management and trading for derivatives‐based and multi‐asset strategies. Mr. Mayberry is a Strategist on the Fixed Income Asset Allocation Committee and a contributing member on our Global Asset Allocation and Macro committees. He also co-hosts DoubleLine’s weekly Monday Morning Minutes (Twitter @DLineMinutes, Minutes@Doubleline.com) podcast. Prior to DoubleLine, Mr. Mayberry was a Senior Vice President at TCW for nine years within the Mortgage Group, where he specialized in portfolio and fund monitoring and analytics. He holds a B.S. in Engineering from Harvey Mudd College and an M.S. in Financial Engineering from the Peter F. Drucker Graduate School of Management at Claremont Graduate University.
Mr. Lau joined DoubleLine in 2009. He is a Strategist on the Fixed Income Asset Allocation (FIAA) Committee and a contributing member on the Global Asset Allocation and Macro Committees. Mr. Lau is a Portfolio Manager on DoubleLine’s strategic commodity strategy while working in portfolio management and trading for derivatives-based and multi-asset strategies, including DoubleLine's Shiller Enhanced CAPE®, Shiller Enhanced International CAPE®, Real Estate and Income, and Multi-Asset Trend strategies. He also co-hosts the Sherman Show (Twitter @ShermanShowPod, ShermanShow@Doubleline.com) and Monday Morning Minutes (Twitter @DLineMinutes, Minutes@Doubleline.com) podcasts. Prior to DoubleLine, Mr. Lau was a Vice President at TCW where he worked under Jeffrey Gundlach as a Research Analyst in the Mortgage Group. He holds a B.S. from the University of Wisconsin, Madison and an MBA from the Marshall School of Business at the University of Southern California.