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DoubleLine Podcasts

MMM Episode 40: ISMs Big-ism’s, a Taper Pacer and Powell Channeling Yoda

Jeffrey Mayberry and Samuel Lau cover the Nov. 1-5 week’s rise in equities, credit, a surprising easing in the 10-year Treasury yield (3:10) and slight weaknesses in Bitcoin and commodities. Notwithstanding a hiccup in commodities, Jeff sees a bullish case for the asset class. Commenting on oil’s consistent closes above $80 a barrel (7:19), he calls recent talk of $100 oil “a little far-fetched, but certainly $90 seems like it could happen depending on how supply comes out.” Then they turn to the week’s macro news, including strong readings for both ISMs:  the Institute for Supply Chain Management’s reports on the manufacturing and service sectors of the U.S. economy (10:38).

For the Topic of the Week, Jeff and Sam turn to the Nov. 3 meeting of the Federal Open Market Committee (FOMC), including Fed Chair Jerome Powell’s news conference following that session of the FOMC (15:14). The podcast cohosts evaluate the Fed’s guidance on the expected pace of future tapering of the central bank’s asset purchases, including in the light of an “offsetting” volume in U.S. Treasury issuance. They poke fun at Powell’s press remarks (20:06), which were filled with examples of Yoda-like “circular logic,” “dancing around” the Fed’s meaning of “maximum employment.” Powell, they observe, seems to have learned the inside-the-beltway art of saying nothing. That said, Jeff and Sam compliment the Fed chairman for managing to message a two-month forward view on the pace of the Fed’s tapering without jarring the financial markets.

The views and opinions expressed herein are as of the date recorded and should not be construed as an offer to buy or sell any securities. Such views/opinions may differ from those of DoubleLine Capital or other of its affiliates and are subject to change without notice. DoubleLine has no obligation to provide any updates or changes. The following audio presentations represent DoubleLine’s intellectual property. No portion of these presentations may be published, reproduced, transmitted or rebroadcast in any media in any form without the express written permission of DoubleLine. DoubleLine has no obligation to provide any updates or changes. To receive permission from DoubleLine please contact [email protected].

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DoubleLine is not providing any financial, economic, legal, accounting or tax advice in these podcasts. The receipt of these podcasts by any listener is not to be taken as constituting the giving of investment advice by any DoubleLine entity or individual to that listener, nor to constitute such person a client of any DoubleLine entity. The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.

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