John Hancock Investment Management

Markets go full risk-on post the U.S. election with asset class leadership across crypto, high yield bonds, and U.S. small-caps. High yield bond spreads tightened to their lowest levels in 17 years (since 2007) at 2.56%. The U.S. dollar strengthened helping broader U.S. equity outperformance. The #Fed cut interest rates as expected, but December will be a closer call. The bond market is now pricing in about 69% chance of a cut and 31% chance of a hold. We also saw Chinese equities experience volatility last week as stimulus measures did not meet market expectations. This week we have #CPI and U.S. retail sales. Our investment theme is on Municipal bonds, post the 2016 election they did better than taxables through 2019, less politically driven than one would think. John Hancock Investment Management

The #jobs data was all over the place last week. Starting with the September JOLTS report showing a large decline in job openings to 7.4 million. The quit rate plunged to a new cycle low. Then came the ADP report with a blowout 233k private sector job gain and then we had a drop in initial jobless claims to 216k (lowest since May). We ended the week with a +12k jobs report combined with negative prior revisions of -112k.?The bond market is not acting itself given the rise in yields amidst this mixed jobs backdrop. In terms of earnings, S&P 500 Q3 earnings growth is now tracking 5% with a beat rate of 70%. This week we have the U.S. #election and a #Fed meeting. Our investment theme is considering mid-cap core and intermediate core plus to manage election tail risks. John Hancock Investment Management

I ?? NYC! Great day yesterday meeting with advisors in the city and visiting Bloomberg and Fox Business Network for some in person media! So much to discuss across the #election, the opportunity in #bonds, and why now might be the right time for a “chill” portfolio. Thanks to Gina Simonis for putting together a great day! John Hancock Investment Management

Global PMIs suggest the U.S. is still holding up of the best globally, with the services side of the economy driving much of the strength. S&P 500 earnings season rolls on with Q3 earnings growth thus far tracking 3.45%. Initial jobless claims fell back down last week, but continuing claims remain elevated. This week we have 5 of the Mag 7 companies reporting earnings, the U.S. ISM, JOLTs, and then the #jobs report. In the subsequent week, we have the U.S. #election and a #Fed meeting. The next two weeks will be a lot of macro for markets to digest. As for our investment theme, we review the value being offered in high quality bonds as yields near 5%. John Hancock Investment Management