Tramondo Quarterly (Q4 2020).

HIGHLIGHTS OF THE CURRENT EDITION

At its annual Jackson Hole meeting in August, Fed chair Powell introduced a new monetary framework called “average inflation targeting,” which allows underlying inflation measures to overshoot the well-known inflation target of 2.0% temporarily.

The virus and its sudden and devastating effects on the US real economy – with still more than 10 million citizens out of a job – forced US President Trump’s re-election efforts to break new grounds in the last couple of months.

High-frequency data, such as travel and navigation app usage, point to continued global growth during the third quarter of 2020, albeit at a more moderate pace than back in May or June.

In such an environment, we still favor an up-in-quality approach across both stocks and bonds, along with a focus on valuations relative to underlying fundamentals.