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

In the first of a three-part series, Lord Abbett investment leaders analyze the factors that drove the market in 2018, and that may influence investments in the coming year.

 

In Brief

  • Once again, we convened five Lord Abbett investment leaders for a roundtable discussion, this time to discuss the investing environment of 2018, the outlook for 2019, and strategies for the coming year.
  • Our panel represents a wide range of our firm’s investment disciplines: multi-asset strategies, U.S. equities, U.S. taxable fixed income, emerging markets, and municipal bonds.
  • In the first installment of our three-part series, our experts explore how developments in corporate earnings, trade, and interest-rate moves influenced key investment categories in 2018.

 

The year 2018 has not lacked for interesting storylines for the global economy and markets. Investor optimism in the spring and summer—spurred by strong corporate profits, restrained inflation, and continued global growth—gave way to caution in the historically volatile month of October.

What were the likely reasons? Investors began to fret that company earnings would decelerate, with increased trade friction between the United States and China adding a strong headwind. Fears that the U.S. Federal Reserve (Fed) would hike rates too rapidly also factored into the sentiment shift. The market gyrations continued into November, and had, as of November 30, resulted in negative year-to-date returns for most of the major U.S. asset classes. As one Lord Abbett investment professional put it, the gloom reached a point where it appeared that investors, suddenly wary of slowing or negative growth, were “wandering around waiting for the end of days.”

Of course, no one is recommending that investors begin stocking up on dehydrated food and bottled water. Perhaps a pullback was inevitable, given the ebullience that characterized much of the year. We believe that understanding the factors that influenced the economy and markets in 2018 is an important first step in formulating views about where things may be headed in 2019.

As we did at midyear, we gathered five Lord Abbett investment leaders in late November for a wide-ranging discussion of the current market and economic environment and their views on key investment themes for the coming year. In this, the first of a special three-part Market View, our panel examines the factors that influenced key asset classes and economies in 2018. Part two will focus on their expectations for the environment in the year ahead. In the concluding segment, our experts will discuss how the factors outlined in parts one and two inform investment strategies for key asset classes.

Once again, our panel featured Lord Abbett partners Giulio Martini, director of global asset allocation; Thomas O'Halloran, portfolio manager for micro-, small-, and large-cap growth strategies; Daniel Solender, director of tax-free fixed income; and Kewjin Yuoh, portfolio manager for taxable fixed income. For the new edition, the panel welcomed Leah Traub, partner and portfolio manager for taxable fixed income. The discussion was moderated by Joseph Graham, head of the firm’s investment strategy group. (Coming soon: Visitors to lordabbett.com will be able to access a full range of content from the panel discussion.)

The Big Picture
In our July 9 outlook, the panel acknowledged favorable global economic conditions; however, the year-end assessment was more muted. Martini noted two different “strands” of policy and politics influencing the economy and the markets in 2018. The first: The 2017 U.S. tax reform package, along with the Trump administration’s push for deregulation. Those factors were positive for economic growth, and thus, corporate profits, according to Martini. 

The second strand, which had to do with the administration’s hardline approach to trade and immigration, was “always clearly going to be negative” for the market, economic growth, and corporate earnings, said Martini, “and I think we've turned around to focus more on that second part right now.” And with a few signs of slowing in the global economy underscoring the existing uncertainty, especially regarding U.S.-China trade tensions, “I think investors have really started to worry about how this all could come together and develop over the next year or so.” The gloom makes it seem as though investors are “kind of wandering around waiting for the end of days.”

At some point, Martini notes, a downturn will come. But before that day comes, the current U.S. business expansion is poised to become the longest ever in U.S. history (see Chart 1). Nonetheless, Martini thinks that investors have started to “really worry about” the potential for slowing economic growth to weigh on corporate earnings.
 

Chart 1. Will the Current U.S. Expansion Break the Longevity Record?
Length (in months) of U.S. economic expansions for indicated periods

Source: National Bureau of Economic Research. Data as of October 31, 2018.

 

But the “end of days” would be triggered by stresses that bring an end to the conditions that allow the economy to grow and the markets to move higher, according to Martini. With inflation remaining at low levels, and in the absence of credit bubbles or other market distortions, “we just don't see” those stresses, Martini said. “So this could not only end up being the longest U.S. economic expansion, but it could far outpace the previous record.”

Taxable Fixed Income
Graham steered the conversation toward the U.S. bond market with a question for Yuoh, who noted “a sense of déjà vu" from the last time the panel gathered. “Things were weakening a little bit,” Yuoh recalled, “and the narrative in the markets at that time seemed to be that the yield curve was flattening.” There was a widespread narrative that held that if the curve inverted, a recession would follow, with a negative impact on prices of risk assets, according to Yuoh.

Fast forward to late November, and as Yuoh noted, “the yield curve is actually flatter now than it was when we last met—and that narrative is completely gone.” Where did it go?

“We came into the third quarter believing that this time it was different, that the flat yield curve was okay,” said Yuoh. “And in the third quarter, risk assets seemed to agree with us,” as they performed well. The fundamentals of the economy remained favorable, in investors’ view. But “all of a sudden, we hit the fourth quarter and the narrative became, ‘we can't handle rising rates’,” Yuoh observed. Investors’ worries centered around the policy path of the Fed, and whether the central bank was hiking rates too fast, and by too much. The fear of higher rates seemed to be one of the main storylines for the weakness in the U.S. bond market in the fourth quarter.

But Yuoh disagrees with that focus. “How is that so different from what we've been experiencing the last few years in terms of the Fed raising rates 25 basis points every quarter, with the expectation that they're going to continue to do so, especially with fundamentals so strong—and inflation so tame?” These conditions give the Fed additional room to remove accommodation, according to Yuoh.  

Yuoh believes the signal moment for the bond market in the third quarter may have occurred at the end of the September Federal Open Market Committee meeting, when a statement from Fed officials removed the word “accommodative” in describing policy, and started pointing towards a greater emphasis on data dependency. “I think that should have signaled to the markets that we are due for higher volatility because of higher uncertainty,” Yuoh said. “And when you have higher uncertainty, you should have higher risk premiums.” That, according to Yuoh, has been the main influence for the direction of the fixed income market in late 2018.

Emerging Markets
Graham posed a question to Traub about the current environment for emerging market (EM) investments, especially given the strengthening U.S. dollar.

Traub pointed to a combination of factors. The Fed’s three rate hikes through September reduced liquidity. The increasingly heated trade squabbles between the United States and China began to command investor attention. Finally, signs of an emerging slowdown in China—a huge influence on many other emerging economies—weighed on sentiment. These factors, Traub noted, also had a negative effect on prices of commodities, a key output for many emerging market economies.

The woes were exacerbated by an extended rise in the value of the U.S. dollar versus other currencies, starting in April and continuing into the summer. The volatility experienced by emerging markets eventually broadened out into developed markets, giving EM investors “a little bit of a reprieve.”

“I do think the volatility is still going to be with us,” Traub said. The key factor is a lack of clarity on U.S.-China trade tensions, and “I don't think we're going to get a quick or a full resolution,” she added. Traub sees the possibility of smaller trade deals, but absent a definitive conclusion to the dispute, she thinks the situation will “ebb and flow and be with us for a while.”

U.S. Equities
The discussion turned to the U.S. equity market in 2018, with a focus on O’Halloran’s specialty, growth stocks. Graham asked if the trade tension referenced by Traub was a factor behind the late-year weakness, which involved an investor rotation out of many growth names into other sectors of the market.

O’Halloran believed the Fed’s ongoing moves to reduce its balance sheet and raise interest rates had a greater impact than trade issues. “But they're both at work in bringing about the corrective phase that we find ourselves in right now,” he said. O’Halloran noted that growth stocks had led the market for nearly 21 months. And after such a stretch, “they tend to go through a corrective phase for some period of time, which is clearly what's happening now.” He observed that the leadership of the equity markets has changed from the big-cap tech “FAANG” stocks to some defensive areas, such as utilities and consumer staples.

“So we are currently in a corrective phase,” O’Halloran concluded. He harked back to the market risks listed in the June roundtable—such as the flattening yield curve, trade, and geopolitical tensions—which investors had brushed aside as they bid equities higher during the summer. “They finally came to matter” in October, he said.

Municipal Bonds
Graham asked Solender to frame the municipal bond market environment in 2018.  Solender noted that the factors contributing to a “slightly negative” year for the overall muni market include the Fed’s policy moves and strong U.S. economic growth, and their joint impact on interest rates. Another, overhanging factor has been the U.S. tax legislation enacted in December 2017. All of these developments have had an impact on municipal bond valuations while the fiscal situation for state and local governments has remained strong.

Retail investors, who make up the majority of the muni-bond market, remain “very concerned” about rising rates, noted Solender. This has reduced their demand for longer-dated munis and spurred buying in the shorter end of the market. To the surprise of many, Solender added, the muni yield curve has steepened even as the Treasury curve has been flattening. The curve steepening in munis in 2018 reflects the supply and demand dynamics from all types of investors.

As Solender has noted on a number of occasions, uncertainties about the final shape of the U.S. the tax bill pushed the issuance of many bonds that would have been brought to market in 2018 into December of last year. Thus, “the first half of 2018 was really slow in terms of supply,” while things picked up somewhat later in the year. Even though the overall fiscal situation for U.S. state and local governments remains favorable, “states and municipalities have been holding back a little bit on borrowing,” which has been a positive in terms of supply. Weighing on the demand side has been the reduced presence of banks and insurance companies in the muni-bond market, as lower corporate tax rates from the 2017 bill have reduced the attractiveness of tax-free securities for these buyers.

Solender summarized the mixed 2018 environment. “Fiscally, things are doing very well,” with most states seeing improved revenues. He noted that the overall credit quality of muni issuers remained strong. But rising rates and the steepening muni curve have led to the investment-grade market being slightly negative for the year, while the lower-quality segment of the market has turned in a positive performance.             

Looking Ahead
As our panelists observed, the markets faced a variety of challenges in 2018, many of which are poised to continue into 2019. But one common theme did emerge: Martini, Yuoh, and Traub emphasized that economic fundamentals in the United States remain solid, while Solender noted the overall fiscal health of muni-bond issuers. How might this strength factor into the outlook for 2019? We’ll explore that and other topics in the next Market View

 

MARKET VIEW PDFs


  Market View
  U.S. Market Monitor

Webinar: 2019 Outlook
video
Join our investment leaders for a discussion about their 2019 outlook for the economy, fixed income, and equities markets on Wed., Jan. 2 at 4:15 pm ET.

*Financial professionals only.

INVESTMENT LEADERS

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