U.S. Equities: The Reopening Impact | Lord Abbett
Image alt tag


There was a problem contacting the server. Please try after sometime.

Sorry, we are unable to process your request.


We're sorry, but the Insights and Intelligence Tool is temporarily unavailable

If this problem persists, or if you need immediate assistance, please contact Customer Service at 1-888-522-2388.


We're sorry, but the Literature Center checkout function is temporarily unavailable.

If this problem persists, or if you need immediate assistance, please contact Customer Service at 1-888-522-2388.

Tracked Funds

You have 0 funds on your mutual fund watch list.

Begin by selecting funds to create a personalized watch list.

(as of 12/05/2015)

Pending Orders

You have 0 items in your cart.

Subscribe and order forms, fact sheets, presentations, and other documents that can help advisers grow their business.

Reset Your Password

Financial Professionals*

Your password must be a minimum of characters.

Confirmation Message

Your LordAbbett.com password was successully updated. This page will be refreshed after 3 seconds.



Equity Perspectives

Lord Abbett Portfolio Manager Jeff Rabinowitz discusses key themes for the current U.S. equity market. 


AM with a PM

Jeffrey Rabinowitz

Portfolio Manager

Air Date: March 3, 2021

Hi, this is Jeff Rabinowitz, portfolio manager on the Lord Abbett Durable Growth team.

Title: Equities: Key Factors for the Rest of 2021

Despite the equity market volatility this this past week, there were a number of positive developments as it relates to the economic improvements we have been seeing. I'd say first [that] Covid case counts have been declining at a pretty healthy rate just in the last month or so, which has been quite refreshing to see.

The end of 2020 and early 2021 saw a pretty big spike in case counts, so I think, seeing that begin to come down is encouraging and then secondly, when you combine the decreasing case counts with the vaccine’s supply and distribution continuing to expand, I think that bodes well for the continuing improvement in parts of the economy that have been impacted by Covid. In addition to that, a number of places around the world and here in this country are beginning to see certain restrictions around movement and economic activity begin to, you know move back, being allowed to happen--in other words, emerge from lockdown—so I think that's also healthy for economic improvement.

I'd say, in addition, coming out of these last few quarters, individuals and businesses are getting more familiar, comfortable learning how to get business done and executed and return to certain activities where they feel comfortable. So all these things are combining to really drive a decent economic backdrop for the go forward.

And then, when you layer in what's happening as we sit today and Congress around the next round of economic Covid relief stimulus that's underway, the size of that package is reportedly quite large. It's likely to hit President Biden's desk as early as mid-March so that's going to have a meaningfully positive impact on the economic landscape. And then after that Covid relief package is complete, Congress is planning to begin an effort around an infrastructure bill, [which is going to provide further boost and stimulus to certain parts of the economy from that package.

Title: Equities: A Look at Recent Market Action

So there's a lot of reasons for optimism, so you might ask why would the market pull back in this past week? The reality is it's being driven by you know it could be a number of factors, but I would particularly point to the increases you've seen an interest rates and inflation expectations of late. And my best explanation of why that's logical and why it makes sense—there are a number of potential factors—but I would say, particularly for those companies that are higher growth where valuations are high, quite often in those areas the cash flows and driver of the valuations really in the tail [Tail refers to earnings expected over a long-term horizon when calculating security valuations.] might be the cash flows earnings from 2025 or 2030 that are driving how people are valuing today, and when valuations are on the more elevated side and you see rates begin to rise, the discount rate [Discount rate refers to the interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows for an equity security.] comes up and you do see a healthy kind of correction happened in some of the higher growth names. In the past week we've seen some of the higher growth names come down 10% or more, in some cases, and I think that level of correction is often viewed as pretty healthy and normal in a positive backdrop for equity markets, and I think with the improvements we're seeing in the economy, with the stimulus the infrastructure bill the reopening that's underway, we remain upbeat about the equity market going forward.

Thank you for listening. And thank you for your continued interest in Lord Abbett.


Unless otherwise noted, all discussions are based on U.S. markets and U.S. monetary and fiscal policies.

Asset allocation or diversification does not guarantee a profit or protect against loss in declining markets.

No investing strategy can overcome all market volatility or guarantee future results.

Market forecasts and projections are based on current market conditions and are subject to change without notice. Projections should not be considered a guarantee.

The value of investments in equity securities will fluctuate in response to general economic conditions and to changes in the prospects of particular companies, including market, liquidity, currency, and political risks. Mid and small cap company stocks tend to be more volatile and may be less liquid than large cap company stocks. Mid and small cap companies also may have more limited product lines, markets, or financial resources and typically experience a higher risk of failure than large companies. However, larger companies may have slower rates of growth than smaller successful companies. Investments in growth companies can be more sensitive to the company’s earnings and more volatile than the stock market in general. Investments in value companies can continue to be undervalued for long periods of time and be more volatile than the stock market in general. No investing strategy can overcome all market volatility or guarantee future results.

This broadcast may contain assumptions that are “forward-looking statements,” which are based on certain assumptions of future events. Actual events are difficult to predict and may differ from those assumed. There can be no assurance that forward-looking statements will materialize or that actual returns or results will not be materially different from those described here.

This broadcast serves as reference material and is provided for general educational purposes only; does not constitute an offer to acquire, solicitation for an offer to acquire, an offer to sell or solicitation for an offer to buy, any securities, nor is intended to be relied upon as a forecast, research, or investment advice on any securities, and cannot be used for any of the foregoing.

The views and opinions expressed by the Lord Abbett speaker are those of the speaker as of the date of the broadcast, and do not necessarily represent the views of the firm as a whole. Any such views are subject to change at any time based upon market or other conditions and Lord Abbett disclaims any responsibility to update such views. Neither Lord Abbett nor the Lord Abbett speaker can be responsible for any direct or incidental loss incurred by applying any of the information offered.

The value of investments and any income from them is not guaranteed and may fall as well as rise, and an investor may not get back the amount originally invested. Investment decisions should always be made based on an investor’s specific financial needs, objectives, goals, time horizon, and risk tolerance.

Please consult your investment professional for additional information concerning your specific situation.

The information provided is not directed at any investor or category of investors and is provided solely as general information about Lord Abbett’s products and services and to otherwise provide general investment education. None of the information provided should be regarded as a suggestion to engage in or refrain from any investment-related course of action as neither Lord Abbett nor its affiliates are undertaking to provide impartial investment advice, act as an impartial adviser, or give advice in a fiduciary capacity. If you are an individual retirement investor, contact your financial advisor or other fiduciary about whether any given investment idea, strategy, product or service may be appropriate for your circumstances.

This broadcast is the copyright © 2021 of Lord, Abbett & Co. LLC. All Rights Reserved. This recording may not be reproduced in whole or in part or any form without the permission of Lord Abbett. Lord Abbett mutual funds are distributed by Lord Abbett Distributor LLC.




Please confirm your literature shipping address

Please review the address information below and make any necessary changes.

All literature orders will be shipped to the address that you enter below. This information can be edited at any time.

Current Literature Shipping Address

* Required field