In a discussion on July 1, 2019, Jeffrey Sherman, deputy chief investment officer of DoubleLine, and portfolio managers Jeff Mayberry and Sam Lau conduct their mid-year review of the financial markets, including the return of “central bankers back in charge,” Treasuries seemingly priced for recession amid U.S. stocks at all-time highs and concerning signs in purchasing managers and sentiment indicators. “It kind of feels like we’re being driven by the global forces today,” Sherman says. “We look at the U.S. economic data, and … the numbers are still pretty positive…. Our recession indicators, there’s a couple of them yellow, there’s a couple that are red, that say recession, but all of the ones that are red are actually yield curve-related, which can be fixed by the Fed. Perhaps that’s what some of the markets are thinking.” Sherman also perceives a turning point in the form of a “drastic” change in inflation expectations at the Federal Open Markets Committee meeting on March 20. Sherman asks “are we in this self-fulfilling idea that prices will not accelerate to the upside.”
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@example.com.
Neither DoubleLine nor any of its affiliates makes any representation or warranty as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed.
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.