TMV

Five years ago, State Street started a new, green fund. The world hasn’t been the same since.

The Congressional Budget Office is making some projections that are breath-taking when it comes to the growth of the federal debt, but also how slow the economy is to grow.The CBO projects economic growth will average only 1.6 percent over the next thirty years and the federal debt in 2050 will be almost double the size of annual GDP.Furthermore, debt loads all over the economy are at or near historic highs and businesses and consumers will be hard-pressed to generate sufficient cash flow to carry the debt.

The 4-8 year period beginning in February of this year potentially will contain three or more official recessions and come to be referred to as the Depression of the 2020s.The money-supply situation today could not be more different from the money-supply situation during the early 1930s*.Because of the way the Fed measures "inflation", for the Fed to achieve its 2% "inflation" target, the average American's cost of living probably has to increase by at least 5% per year.

The case for the European Central Bank to add monetary stimulus gained momentum on Tuesday, with Executive Board Member Fabio Panetta saying policy makers should err on the side of doing more to keep the rebound on track.

More than two weeks of doubt and volatility in the stock market are finally starting to show up in corporate bonds.

Coming into COVID-19, a chunk of client bond money was in higher yielding money markets since credit spreads (in my opinion) offered little value prior to March 2020.After the 35% correction in the S&P 500, and upon the announcement of the Fed liquidity programs, all that money was moved into corporate credit risk (a tactical bet) given the spread widening that happened.Can't recall the source, but Value is on track to outperform Growth for the month, for the first time in years. The question is, "is this sustainable or is it the proverbial dead-cat bounce?"

The great part about the election is, it's a known unknown. Markets are preparing for volatility around the event, even if the event takes months to reconcile.Wall Street is actively hedging risk in that time frame. That itself is bringing down risk surrounding the event.If you can keep your fear and greed under control, you can profit.The CNN Fear and Greed Index is back down to a reasonable 52, which is considered Neutral.