On The Radar: What does impeachment mean for the market?

On the Radar is a biweekly publication providing quick and concise answers to the topical investment and economic questions that are on investors' minds.

To view this email as a web page, click here. OnTheRadar November 2019 FAQs on the Markets and Economy On the Radar is a biweekly publication providing quick and concise answers to the topical investment and economic questions that are on investors' minds. New questions in this issue: 1. What does impeachment mean for the market? U.S. constitutional clashes like impeachment are rare events, with market outcomes too context-specific to draw definitive conclusions regarding current developments. However, going by the limited history we have, market reaction over the long term seems more linked to economic fundamentals. 2. With three cuts under its belt, what is the Fed thinking? Fed chair Jay Powell recently told Congress that monetary policy is on hold in the near term, but the Fed could resume its easing of monetary policy if the economic outlook falters. 3. What is the change in the term premium telling us? The term premium has snapped back 44 bps from the August low of -1.29% to stand at -0.85%. This happened at a time the U.S. 10-year treasury has increased about 37 bps to the yield of 1.83%. 4. What does the recent decline in productivity tell us? Productivity in Q3 was significantly weaker than expected, slipping 0.3%, following a surge in the previous two quarters. Hours worked increased 2.4%, which more than offset a 2.1% gain in business output. 5. What is City National Rochdale's investment outlook? Given our continued positive assessment of the fundamental backdrop, we remain positive on U.S. equities in general and continue to see attractive prospects in the opportunistic fixed income class. Read More on CNR.com » Follow Us Investment management services provided by City National Bank through its wholly-owned subsidiary City National Rochdale, LLC, a registered investment advisor. City National Bank Member FDIC. Investment Products are: • not insured by the FDIC. • not a deposit or other obligation of, or guaranteed by, the bank. • subject to investment risks, including possible loss of the principal amount invested. Unsubscribe from this list  |  Update email preferences This message has been sent to bank@banking.offers.report. Please do not reply to this email. To ensure the delivery of future emails, please add email@emails.cnb.com to your email address book or safe sender list. Copyright © 2019 City National Bank – All Rights Reserved. 555 South Flower Street, 17th Floor, Los Angeles, CA 90071 City National Bank is a subsidiary of Royal Bank of Canada. TERMS & CONDITIONS  |  PRIVACY STATEMENT NMLSR ID# 536994 | City National Bank Member FDIC