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Outlook 2017

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The Outlook 2017: Mid-Year Update presents commentary from Janney's investment strategists as they look back at market performance from the first half of 2017 and also provide insights on the direction of the economy and markets for the remainder of the year.

 

Economy and Equity Markets

By Mark Luschini, Chief Investment Strategist

 

  • Economic activity should continue in a positive fashion, providing a backdrop for corporate profit growth to continue at a healthy pace.
  • Stock prices will eventually suffer a setback, however, investors should remain long, as the window for risk assets to outperform remains open for now.

 

Fixed Income Market

By Guy LeBas, Chief Fixed Income Strategist

 

  • Interest rates are highly sensitive to inflation readings, but the bias is for a slight increase in 2H 2017.
  • We expect the Federal Reserve will raise rates one more time in 2017, then start shrinking its balance sheet.

 

Credit Markets

By Jody Lurie, Director, Corporate Credit Analyst

 

  • Credit spreads are nearing 2014 tights, so the question becomes more of a “when” than an “if” there will be a widening.
  • Should we see a flatter yield curve by year-end, then, coupled with monetary and/or fiscal measures, it could provide positive support for preferreds.

 

Municipal Markets

By Alan Schankel, Managing Director, Municipal Strategy

 

  • The municipal market is on firm technical footing, with strong reinvestment flows and relatively light new issue volume.
  • Municipal credit spreads are tight, suggesting that lower quality bonds may not offer sufficient return to compensate for additional risk.

 

Read the full commentary.