Jurrien Timmer, Director of Global Macro, is back to provide his weekly market commentary. Jurrien continues to believe in a good barbell strategy (having both value and growth in your portfolio), and in capitalizing on U.S. secular growth trends and investing in emerging markets to gain value. One of the hallmarks of the COVID-19 crash cycle of 2020 is that what could have been a worse outcome was mitigated by the Federal Reserve (the Fed) and other central banks. Jurrien points out that the position the Fed is in is not a new one. In the 1940s, when the U.S. had massive debt and increased taxation, the Fed was able to orchestrate the economy and ensure that it saw the market play out the way it wanted. Jurrien shares his findings, explaining how the Fed is using quantitative manipulation and forward guidance to help the market retrace its steps, which has led to an orchestrated rebound. He supports this research with data and graphs that link with a Twitter thread. You can follow along with the slides: @TimmerFidelity on Twitter.
Recorded on August 10, 2020.