Image alt tag

Error!

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

Sorry, we are unable to process your request.

Error!

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.

Error!

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.

A verification Email Has Been Sent

An email verification email has been sent to .
Follow the instructions to complete the email validation process.

I have not received my verification email

Check your SPAM mailbox and make sure that twelcome@lordabbett.com is allowed to send you mail.

I'm still having trouble

If you're still having trouble verifying your email address. feel free to contact us.

1-888-522-2388
clientservices@lordabbett.com


OK

We're sorry. We found no record of the email address you provided.

Register For a LordAbbett.com Account
Using Your Email Address.

  • Registered Financial Advisors gain access to:
  • Our data mining tool, Insight & Intelligence
  • Best in-class practice management content
  • Educational events, videos and podcasts.
  • The Lord Abbett Review - Subscribe now!

Registered but Having Problems?

If you believe you are registered and are having problems verifying your email address, feel free to contact us.

1-888-522-2388 clientservices@lordabbett.com

Terms & Condition

These Terms of Use ("Terms of Use") are made between the undersigned user ("you") and Lord, Abbett & Co. ("we" or "us"). They become effective on the date that you electronically execute these Terms of Use ("Effective Date").

A. You are a successful financial consultant that markets securities, including the Lord Abbett Family of Funds;

B. We have developed the Lord Abbett Intelligence System (the "Intelligence System"), a state of the art information resource that we make available to a limited community of broker/dealers through the Internet at a secure Web site (the "LAIS Site"); and

C. We wish to provide access to the Intelligence System to you as an information tool responsive to the demands of your successful business pursuant to these Terms of Use. Accordingly, you and we, intending to be legally bound, hereby agree as follows:]

1. Overview. · Scope. These Terms of Use (which we may amend from time to time) govern your use of the Intelligence System. · Revisions; Changes. We may amend these Terms of Use at any time by posting amended Terms of Use ("Amended Terms of Use") on the LAIS Site. Any Amended Terms of Use will become effective immediately upon posting. Your use of the Intelligence System after any Amended Terms of Use become effective will be deemed to constitute your acceptance of those Amended Terms of Use.We may modify or discontinue the Intelligence System at any time, temporarily or permanently, with or without notice to you. Purpose of the Intelligence System. The Intelligence System is intended to be an information resource that you may use to contribute to your business research. The Intelligence System is for broker/dealer use only; it is not to be used with the public in oral, written or electronic form. The information on the Intelligence System and LAIS Site is for your information only and is neither the tax, legal or investment advice of Lord Abbett or its third-party sources nor their recommendation to purchase or sell any security.

2. Your Privileges. · Personal Use. Your use of the Intelligence System is a nontransferable privilege granted by us to you and that we may deny, suspend or revoke at any time, with or without cause or notice. · Access to and Use of the Intelligence System. The User ID and password (together, an "Access ID") issued by us to you (as subsequently changed by you from time to time) is for your exclusive access to and use of the Intelligence System. You will: (a) be responsible for the security and use of your Access ID, (b) not disclose your Access ID to anyone and (c) not permit anyone to use your Access ID. Any access or use of the Intelligence System through the use of your Access ID will be deemed to be your actions, for which you will be responsible. · Required Technology. You must provide, at your own cost and expense, the equipment and services necessary to access and use the Intelligence System. At any time, we may change the supporting technology and services necessary to use the Intelligence System. · Availability. We make no guarantee that you will be able to access the Intelligence System at any given time or that your access will be uninterrupted, error-free or free from unauthorized security breaches.

3. Rights in Data. Our use of information collected from you will be in accordance with our Privacy Policy posted on the LAIS Site. Our compliance with our Privacy Policy will survive any termination of these Terms of Use or of your use of the Intelligence System.

4. Your Conduct in the Use of the Intelligence System. You may access, search, view and store a personal copy of the information contained on the LAIS Site for your use as a broker/dealer. Any other use by you of the Intelligence System and the information contained on the LAIS Site these Terms of Use is strictly prohibited. Without limiting the preceding sentence, you will not: · Engage in or permit any reproduction, copying, translation, modification, adaptation, creation of derivative works from, distribution, transmission, transfer, republication, compilation or decompilation, reverse engineering, display, removal or deletion of the Intelligence System, any portion thereof, or any data, content or information provided by us or any of our third-party sources in any form, media or technology now existing or hereafter developed, that is not specifically authorized under these Terms of Use.

· Remove, obscure or alter any notice, disclaimer or other disclosure affixed to or contained within the Intelligence System, including any copyright notice, trademark and other proprietary rights notices and any legal notices regarding the data, content or information provided through the Intelligence System.

· Create a hyperlink to, frame or use framing techniques to enclose any information found anywhere on the LAIS Site without our express prior written consent.

· Impersonate any person, or falsely state or otherwise misrepresent his or her affiliation with any person in connection with any use of the Intelligence System.

· Breach or attempt to breach the security of the Intelligence System or any network, servers, data, or computers or other hardware relating to or used in connection with the Intelligence System; nor (b) use or distribute through the Intelligence System software or other tools or devices designed to interfere with or compromise the privacy, security or use of the Intelligence System by others or the operations or assets of any person.

· Violate any applicable law, including, without limitation, any state federal securities laws. 5. Your Representations and Warranties. You hereby represent and warrant to us, for our benefit, as of the time of these Terms of Use and for so long as you continue to use the Intelligence System, that (a) you are, and will continue to be, in compliance with these Terms of Use and any applicable laws and (b) you are authorized to provide to us the information we collect, as described in our Privacy Policy.

6. Disclaimer of Warranties.

· General Disclaimers.

THE INTELLIGENCE SYSTEM, THE LAIS SITE AND ALL DATA, INFORMATION AND CONTENT ON THE LAIS SITE ARE PROVIDED "AS IS" AND “AS AVAILABLE” AND WITHOUT ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND. WITHOUT LIMITING THE PRECEDING SENTENCE, LORD ABBETT, ITS AFFILIATES, AGENTS, THIRD-PARTY SUPPLIERS AND LICENSORS, AND THEIR RESPECTIVE EMPLOYEES, CONTRACTORS, DIRECTORS, OFFICERS AND SHAREHOLDERS (COLLECTIVELY, THE “LORD ABBETT GROUP”) EXPRESSLY DISCLAIM ALL WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NONINFRINGEMENT. YOU EXPRESSLY AGREE THAT YOUR USE OF THE LAIS SITE, THE INTELLIGENCE SYSTEM, AND THE DATA, INFORMATION AND CONTENT PRESENTED THERE ARE AT YOUR SOLE RISK AND THAT THE LORD ABBETT GROUP WILL NOT BE RESPONSIBLE FOR ANY (A) ERRORS OR INACCURACIES IN THE DATA, CONTENT AND INFORMATION ON THE LAIS SITE AND THE INTELLIGENCE SYSTEM OR (B) ANY TERMINATION, SUSPENSION, INTERRUPTION OF SERVICES, OR DELAYS IN THE OPERATION OF THE LAIS SITE OR THE INTELLIGENCE SYSTEM.

· Disclaimer Regarding Investment Research.

THE INTELLIGENCE SYSTEM INCORPORATES DATA, CONTENT AND INFORMATION FROM VARIOUS SOURCES THAT WE BELIEVE TO BE ACCURATE AND RELIABLE. HOWEVER, THE LORD ABBETT GROUP MAKES NO CLAIMS, REPRESENTATIONS OR WARRANTIES AS TO THE ACCURACY, TIMELINESS, COMPLETENESS OR TRUTHFULNESS OF SUCH DATA, CONTENT AND INFORMATION. YOU EXPRESSLY AGREE THAT YOU ARE RESPONSIBLE FOR INDEPENDENTLY VERIFYING YOUR INVESTMENT RESEARCH PRIOR TO FORMING YOUR INVESTMENT DECISIONS OR RENDERING INVESTMENT ADVICE. THE LORD ABBETT GROUP WILL NOT BE LIABLE FOR ANY INVESTMENT DECISION MADE BY YOU OR ANY OTHER PERSON BASED UPON THE DATA, CONTENT AND INFORMATION PROVIDED THROUGH THE INTELLIGENCE SYSTEM OR ON THE LAIS SITE.

· Survival.

THIS SECTION 6 SHALL SURVIVE ANY TERMINATION OF THESE TERMS OF USE OR YOUR USE OF THE INTELLIGENCE SYSTEM..

7. Limitations on Liability.

NONE OF THE MEMBERS OF THE LORD ABBETT GROUP WILL BE LIABLE TO YOU OR ANY OTHER PERSON FOR ANY DIRECT, INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, SPECIAL OR EXEMPLARY DAMAGES (INCLUDING LOSS OF PROFITS, LOSS OF USE, TRANSACTION LOSSES, OPPORTUNITY COSTS, LOSS OF DATA, OR INTERRUPTION OF BUSINESS) RESULTING FROM, ARISING OUT OF OR IN ANY WAY RELATING TO THE INTELLIGENCE SYSTEM, THE LAIS SITE OR YOUR USE THEREOF, EVEN IF THE LORD ABBETT GROUP HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THIS SECTION 7 WILL SURVIVE ANY TERMINATION OF THESE TERMS OF USE OR YOUR USE OF THE INTELLIGENCE SYSTEM.

8. Miscellaneous Provisions.

· Governing Law. This Agreement will governed by and construed in accordance with the laws of the State of New York, without giving effect to applicable conflicts of law principles.

THE UNIFORM COMPUTER INFORMATION TRANSACTIONS ACT OR ANY VERSION THEREOF, ADOPTED BY ANY STATE, IN ANY FORM ("UCITA") WILL NOT APPLY TO THESE TERMS OF USE. TO THE EXTENT THAT UCITA IS APPLICABLE, THE PARTIES HEREBY AGREE TO OPT OUT OF THE APPLICABILITY OF UCITA PURSUANT TO THE OPT-OUT PROVISION(S) CONTAINED THEREIN.

The Intelligence System is not intended to be used by consumers, nor are the consumer protection laws of any jurisdiction intended to apply to the Intelligence System. You agree to initiate and maintain any action, suit or proceeding relating to these Terms of Use or arising out of the use of the Intelligence System exclusively in the courts, state and federal, located in or having jurisdiction over New York County, New York.

YOU HEREBY CONSENT TO THE PERSONAL JURISDICTION AND VENUE OF THE COURTS, STATE AND FEDERAL, LOCATED IN OR HAVING JURISDICTION OVER NEW YORK COUNTY, NEW YORK. YOU AGREE THAT YOU WILL NOT OBJECT TO A PROCEEDING BROUGHT IN YOUR LOCAL JURISDICTION TO ENFORCE AN ORDER OR JUDGMENT OBTAINED IN NEW YORK.

· Relationship of Parties. The parties to these Terms of Use are independent contractors and nothing in these Terms of Use will be construed as creating an employment relationship, joint venture, partnership, agency or fiduciary relationship between the parties.

· Notice. All notices provided under these Terms of Use will be in writing and will be deemed effective: (a) when delivered personally, (b) when received by electronic delivery, (c) one business day after deposit with a commercial overnight carrier specifying next day delivery, with written verification of receipt, or (d) three business days after having been sent by registered or certified mail, return receipt requested. We will only accept notices from you in English and by conventional mail addressed to: General Counsel Lord, Abbett & Co. 90 Hudson Street Jersey City, N.J. 07302-3973 We may give you notice by conventional mail or electronic mail addressed to the last mail or electronic mail address transmitted by you to us.

· Third-Party Beneficiaries. The members of the Lord Abbett Group are third-party beneficiaries of the rights and benefits provided to us under these Terms of Use. You understand and agree that any right or benefit available to us or any member of the Lord Abbett Group hereunder will also be deemed to accrue to the benefit of, and may be exercised directly by, any member of the Lord Abbett Group to the extent applicable.

· Survival. This Section 8 will survive any termination of these Terms of Use or your use of the Intelligence System. The undersigned hereby signs these Terms of Use. By electronically signing and clicking "Accept" below, these Terms of Use will be legally binding on me. To sign these Terms of Use, confirm your full name and enter your User ID and Password (as your electronic signature) in the fields indicated below and click the “I Accept” button.

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.

OK

 

Market View

While we believe the overall backdrop for investments remains constructive, our experts will be keeping an eye on these economic and geopolitical uncertainties.

 

In Brief

  • The confluence of a stronger U.S. dollar, higher U.S. interest rates, and trade wars could dampen the global economic expansion.
  • Following the longest U.S. bull market in equities ever, investors will have to factor in the potential impact of political upheaval in Washington as well as increasing geopolitical tensions—both of which could increase market volatility. 
  • While we remain sanguine about many of these risks, there is no doubt that such an environment underscores the need for active risk management of investor portfolios.

 

September historically has been a challenging month for investors. But no matter what happens to stocks in the longest bull market in U.S. history (with the Nasdaq Composite Index recently topping the 8,000 level for the first time), this month could be “a September to remember,” in the words of Giulio Martini, Lord Abbett partner and director of strategic asset allocation.

Indeed, with a laundry list of global developments that could weigh on financial markets worldwide in the coming month, we thought it would be useful to review some of the most important items and offer some needed context.

Higher Interest Rates and a Stronger Dollar 
While inflation is well under control and employment is strong, the U.S Federal Reserve (Fed) is likely to raise interest rates again during its meeting on September 26 (for the third time this year). Many market observers are concerned that this could lead to recession, further dampening an already slowing housing market and consumer spending. The effects also may be felt elsewhere, as a strengthening U.S. dollar (see Chart 1) makes it harder for debtors in Turkey and other emerging markets to repay loans denominated in greenbacks. So, investors should not get complacent, cautions Robert Lee, Lord Abbett partner and chief investment officer.

 

Chart 1.  The U.S. Dollar Rally Has Accelerated This Year
  

Source: Federal Reserve. For illustrative purposes only and does not represent any specific portfolio managed by Lord Abbett or any particular investment.

 

U.S. Fiscal and Political Developments
Meantime, the Congressional Budget Office reports that gross federal debt has risen to a whopping $21.2 trillion. As a percentage of GDP, that debt burden amounts to 105.4% (according to Trading Economics), the third highest in the world, behind only Japan and Italy, and is expected to grow significantly. (See Chart 2.) Of course, some economists have pointed out that, while the debt level is high, the U.S. economy is improving, and further economic growth may lessen the debt burden as a percentage of GDP. But others ask whether the U.S. government will address the debt now while the economy is on solid footing and before the economy hits a downturn.

 

Chart 2.  U.S. Debt as a Percentage of GDP Now Rivals Italy
U.S. gross federal debt to GDP versus Japan and Italy, 2013-18E


Source: TradingEconomics.com and U.S. Bureau of Public Debt   For illustrative purposes only and does not represent any specific portfolio managed by Lord Abbett or any particular investment.

 

“Congress will eventually have to increase the debt ceiling,” Martini opined at a recent wide-ranging roundtable with investment professionals. “There could be another government shutdown or a very tough negotiation around that. That doesn’t necessarily mean there would be a default on U.S. debt,” but congressional negotiations on addressing the issue could be difficult in the run-up to what are shaping up to be contentious U.S. midterm elections.

Meanwhile, the Fed reports that total U.S. corporate debt was 45.2% of GDP at the end of the first quarter, matching the highest level it hit during the financial crisis of 2008–09, and, according to Bloomberg, the share of risky debt is rising. It should be noted, however, that default rates are low—a reflection of stronger U.S. economic growth.   

Brexit and the European Union
Another potential stress on the markets could be Brexit negotiations, which are now in their final stages. According to a recent study by the International Monetary Fund, the United Kingdom’s departure from the European Union (EU)—a so-called “hard Brexit”—will hurt income and employment in the EU.

“If the U.K. and the EU settle on a standard free trade agreement whereby tariffs on goods traded are low, but with higher non-tariff barriers, we estimate that EU [excluding the United Kingdom] real output will be lower by 0.8%, and employment by 0.3%, in the long run than in a no-Brexit [“soft Brexit”] scenario,” the IMF report said.  

“A ‘hard Brexit’ scenario is not our base case,” said Lee. The 28-nation European Union not only hopes to strengthen its role in the world but also to cooperate with the United Kingdom as a close partner. Once negotiations are completed, a 21-month transition period would give businesses and administrations time to adapt, as the U.K. would stay in the EU’s Single Market and Customs Union until December 31, 2020.

But the EU has other issues to contend with, including considerable friction between Italy and the rest of the bloc over budgetary rules and procedures concerning the processing of refugees. Following the deadly collapse of a bridge in Genoa, Italian officials urged some easing of EU budget limits in order to upgrade the country’s aging infrastructure, seemingly assigning blame to fiscal austerity measures resulting from EU strictures for the tragedy. Meanwhile, the refusal of the government to allow migrants to disembark in Italy without a burden-sharing agreement with the rest of the EU opened another front for conflicts.

Geopolitical Risks
At any given time, Lee can enumerate a number of geopolitical risks that may be difficult to assess, but require constant due diligence. For instance:

  • North Korea—One big question on Lee’s mind is whether current diplomatic efforts will be able to defuse tensions on the Korean peninsula. Will North Korean leader Kim Jong Un live up to his pledge to abandon his nuclear arsenal? Unlikely—as a recent report by the International Atomic Energy Agency (IAEA) raised considerable doubts to that issue. All of which helps to explain why President Trump recently decided to delay talks, given a lack of “sufficient progress.” Trump suggested talks could resume in the near future once the United States’ trading relationship with China is resolved.
  • Iran—While the U.S.-China trade dispute helped control  international oil prices, increased diplomatic and economic pressure against Iran, including economic sanctions imposed by the United States, have hampered the global oil supply outlook. For its part, the EU appears committed to maintaining economic ties to Iran (especially in regard to oil supplies), despite President Trump’s threats of “severe consequences” of retribution. Iran has asked a U.N. court to lift the crippling U.S. sanctions. Meanwhile, escalating clashes between Israeli and Iranian forces in Syria have led observers to believe that the risks of a new, large-scale regional conflict have increased.
  • Russia—The Trump administration recently imposed new sanctions on Russia, as U.S. lawmakers weighed tougher measures, despite the need for cooperation on North Korea, Iran, and Syria, among other hotspots. One U.S. State Department official told a Senate committee that the Russian economy is under considerable strain. Foreign direct investment in Russia has fallen by 80% since 2013 and, its major exports, oil and natural gas, are facing increasing competition from the United States.

No one can say with certainty how any of these risks will evolve. But, in summing up the geopolitical outlook, Lee remains sanguine. “I don't think the picture is particularly dire on any one of these situations,” he says, “but some of the risks have increased, which underscores the important role that Lord Abbett’s risk management team plays in evaluating the impact on our portfolios.”

Suffice it to say, Lord Abbett investment professionals will be constantly monitoring key trends and developments that could affect portfolios, and while the overall outlook on the state of the global economy remains constructive, our highly collaborative approach to active management will allow us to adapt to changing market conditions as warranted.

“We expect risk markets to go up,” said Martini. “These concerns on the part of investors show they have more to overcome than usual.”  

 

IMPORTANT INFORMATION

This article is being provided for informational purposes only and is intended to illustrate certain information analyzed during the research process. It does not constitute a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy, nor investment advice, and should not be used as the basis for any investment decision. This is not a representation of any securities Lord Abbett purchased or would have purchased or that an investment in any securities of such issuers would be profitable.

Keep in mind that all investments carry a certain amount of risk including possible loss of the principal amount invested. No investment strategy, including diversification and asset allocation, guarantees a profit or protects against a loss. Stock markets and investments in individual stocks are volatile and can decline significantly in response to issuer, market, economic, industry, political, regulatory, geopolitical, and other conditions. There is no assurance that past trends will continue into the future. The value of investments in equity securities will fluctuate in response to general economic conditions and to changes in the prospects of particular companies and/or sectors in the economy. Investments in either growth or value stocks may shift in and out of favor for long periods of time, depending on market and economic conditions. While growth stocks are subject to the daily ups and downs of the stock market, their long-term potential as well as their volatility can be substantial. Value investing involves the risk that the market may not recognize that securities are undervalued, and they may not appreciate as anticipated. Small and mid-cap company stocks tend to be more volatile and may be less liquid than large cap company stocks. Mid cap companies typically experience a higher risk of failure than large cap companies. Small cap companies may also have more limited product lines, markets, or financial resources and typically experience a higher risk of failure than large cap companies. Non-U.S. equity securities generally pose greater risks than domestic securities, including greater price fluctuations and higher transaction costs. Investments outside the United States also may be affected by changes in currency rates or currency controls. With respect to certain countries outside the United States, there is a possibility of nationalization, expropriation or confiscatory taxation, imposition of withholding or other taxes, and political or social instability that could affect investments in those countries. These risks can be greater in the case of emerging country securities. Statements concerning financial market trends are based on current market conditions, which will fluctuate. There is no guarantee that markets will perform in a similar manner under similar conditions in the future.

This Market View 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.

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.

The opinions in Market View are as of the date of publication and subject to change based on subsequent developments and may not reflect the views of the firm as a whole. This material is not intended to be legal or tax advice and is not to be relied upon as a forecast, or research or investment advice regarding a particular investment or the markets in general, nor is it intended to predict or depict performance of any investment. Investors should not assume that investments in the securities and/or sectors described were or will be profitable. This document is prepared based on information Lord Abbett deems reliable; however, Lord Abbett does not warrant the accuracy or completeness of the information. Investors should consult with a financial advisor prior to making an investment decision.

MARKET VIEW PDFs


  Market View
  U.S. Market Monitor

CONTRIBUTING STRATEGISTS

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