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

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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 »
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