UBS On-Air: Market Moves

Rich rejoins for a wide-ranging conversation with Jason that covers equity valuations, Q2 earnings reflections, Fed monetary policy, the US macroeconomic environment, and more. Plus, thoughts on portfolio positioning through year-end. Featured are Jason Draho, Head of Asset Allocation Americas with the UBS Chief Investment Office, and Richard Bernstein, Global Head of Macro and Customized Investing at Janus Henderson Investors. Host: Daniel Cassidy

July US producer price data did nothing to change economists’ outlook for the Federal Reserve. Lettuce prices collapsed 72% from the previous month—this follows a health scare and a demand drop, and is unlikely to be touted as an example of disinflation by the administration.

Following another busy week of corporate earnings releases and equities reaching all-time-highs, Burkhard weighs equity valuations, whether the data-center boom is sustainable, the longevity of productivity momentum, along with where the global race for AI dominance stands today.

The July US consumer price inflation data was as expected. This allowed headline writers to wax lyrical about “easing pressures on the US Federal Reserve”. Economists are not rushing to change views—the economic consensus is very clearly for unchanged US rates this year. Non-oil price pressures still seem benign, but this print was flattered by fewer gasoline price increases that will be evident in the August data.

Eric Kazatzky is a Managing Director and Client Portfolio Manager at MacKay Shields (an affiliate of New York Life Investment Management). As we’re just past the mid-way point of the year, Eric outlines YTD muni market performance, and shares a year-end performance outlook. We cover the outperformance of Revenue Bonds, whether opportunity still exists in the 12-22-year portion of the yield curve, and how to think about High Yield munis in the second-half. Host: Daniel Cassidy