The monthly Timmer market report
Jurrien Timmer – Taking stock of the markets
Stay up-to-date with the markets as Fidelity’s Director of Global Macro Jurrien Timmer weighs in on the latest developments.
Time for lower expectations
April 2018
Jurrien Timmer, Director of Global Macro, talks about why he feels that investors may need to lower their expectations. Although he feels that stocks won't necessarily suffer a major decline, he believes the strong returns and low volatility of recent years appear unlikely to repeat.
Lower Stock Valuations May Be a Trade-Off of Higher Trade Tariffs
April 2018
Jurrien Timmer, Director of Global Macro, looks at the recently proposed trade tariffs, which could threaten to squeeze stock valuations in the coming months. However, strong earnings growth could mitigate any decline in equity prices.
Storm Clouds and Silver Linings
March 2018
Jurrien Timmer, Director of Global Macro, analyzes the recent market volatility. Although stocks recently plummeted 12% over a two-week period, but it may be just what the market needed as bond yields seem to be in better sync with the Fed and equity valuations appear more reasonable.
Market shakeup: What's next?
February 2018
Jurrien Timmer, Director of Global Macro, talks about the recent market pullback. He says that with valuations down and earnings strong, this is still a bull market, but a more late-cycle one than we’ve seen.
Two Roads the Market May Follow
February 2018
Jurrien Timmer, Director of Global Macro, analyzes prior secular bull markets and the findings suggest the current bull market could continue into 2019. One counter-argument against this rosy outlook is that, over the long term, high starting valuations can lead to lower future returns.
Four Key Drivers for Stocks in 2018
January 2018
Jurrien Timmer, Director of Global Macro, talks about how earnings, liquidity, Fed policy, and China could be notable market movers in 2018. The year may produce a more balanced risk-return dynamic, as earnings moderate to historic trend level and financial conditions start to tighten.
Minus Inflation and Leverage, a Bear Market Doesn’t Add Up
December 2017
Jurrien Timmer, Director of Global Macro, talks about how without excessive leverage or rising inflation, a bear market seems unlikely.
As Good as It Gets
November 2017
Jurrien Timmer, Director of Global Macro, talks about how, with growth drivers maturing, it’s time to view the investment landscape through a more critical lens. Although an imminent correction is doubtful, the question in coming years remains how the end of the global easing cycle will affect the investing environment.
Another Milestone on the Road to Policy Normalization
October 2017
Jurrien Timmer, Director of Global Macro, talks about how, despite the Federal Reserve holding rates steady in September, their plan to start rolling down their balance sheet signifies a major milestone, underscoring the central bank’s commitment to unwind its nearly decade-long easy-money policy.
The Conversation We'll be Having for Years to Come
September 2017
In this article, based on a U.S. article, Jurrien Timmer, Director of Global Macro, believes that the timing and degree of monetary policy normalization will likely come down to the overall growth environment and inflation. A strong economic and earnings backdrop should allow central banks to normalize faster than a weak one.
After a snail-paced start, the Fed’s rate tightening cycle is shifting into high gear
August 2017
Jurrien Timmer, Director of Global Macro, talks about why he thinks that stocks can rally through more rate hikes by the U.S. Federal Reserve (the Fed).
As long as corporate earnings and the economy remain robust, financial conditions suggest the Fed can continue on its rate tightening path without sinking the economy.
Will the markets’ fairy-tale year have a happy ending?
July 2017
Jurrien Timmer, Director of Global Macro, looks at how 2017 has been a Goldilocks year so far, with stocks and bonds up amid record-low volatility. But with the Fed pencilling in seven more rate hikes in the next two years, 2018 could be a different story.
Taking stock of the market’s mood
June 2017
Jurrien Timmer, Director of Global Macro, takes stock of the current markets.
He finds that international developed- and emerging-market stocks have beaten U.S. equities on a one-year and year-to-date basis, which he expects to continue. However, he also cautions that equity returns in general could in future be more subdued.