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

Following a tumultuous end to 2018, where do things stand with equities as the calendar flips to 2019?

 

In Brief:

  • The potential for strong U.S. equity returns in 2019 is supported by a relatively strong U.S. economic backdrop that suggests a recession is not imminent.
  • However, many of the same concerns that factored into the volatility at the end of 2018 remain present, including the potential for a slowdown in global growth.
  • In short, volatility is likely to remain present even if equities manage the double-digit return that earnings and multiples suggest they are capable of.

 

The relatively benign U.S. equity market (represented by the S&P 500® Index) of 2017 gave way to volatility in 2018 capped off by a historic collapse in the fourth quarter as the market reversed a 9% year-to-date gain (as of September 30, 2018) into a 7% loss by year end—marking its worst calendar year since the financial crisis in 2008-09.

With this dramatic end to 2018 now in the rear-view mirror, how does the equity market look as 2019 begins? The first week of the new year saw continued volatility. But a full measure of the market’s potential requires a look at a number of factors both within and outside the United States.

Multiples
After peaking at the end of 2017, the forward price–to-earnings (P/E ratio of the S&P 500) trended generally lower during the first three quarters of 2018, driven by strong corporate earnings growth. As volatility spiked in the fourth quarter, equity multiples compressed even further, falling to 15.4x forward earnings by the end of the year—below their 10-year average of 15.8x forward earnings. This drop marked the first time that the S&P 500 forward P/E ratio had fallen below 15.8x since early 2016—suggesting that there remains potential upside in equities if multiples normalize toward their long-term averages.

 

Chart 1. A Falling Forward P/E May Suggest a Potential Upside in U.S. Equities in 2019
S&P 500® Index forward price-to-earnings ratio versus 10-year average, January 2, 2009–January 2, 2018

Source: FactSet. Past performance is not a reliable indicator or a guarantee of future results. For illustrative purposes only and does not represent any specific portfolio managed by Lord Abbett or any particular investment.
Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment.

 

Earnings
While 2018 saw a resumption of equity market volatility, underlying equity fundamentals remained quite strong. As of the end of December, estimates for fourth quarter earnings growth for the S&P 500 were 12.4%, which would make it five straight quarters of double-digit earnings growth. For the calendar year, corporate earnings are expected to have grown by 20.3%—the highest rate of earnings growth for the index since 2010. While the rate of earnings growth is expected to slow in 2019, initial estimates show corporate earnings growing at a rate of nearly 8%, which would mark the fifth best calendar year in the past 10 if it were to hold.

 

Chart 2. If Initial Estimates Hold, Corporate Earnings Could Grow at a Rate of Nearly 8% in 2019
S&P 500® Index earnings and revenue growth, calendar years 2010-2019*

Source: FactSet. *Earnings and revenue growth for 2018 and 2019 are estimates as of January 3, 2019.  Past performance is not a reliable indicator or a guarantee of future results. For illustrative purposes only and does not represent any specific portfolio managed by Lord Abbett or any particular investment. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment.

 

What is particularly encouraging is that these initial estimates project the potential for positive earnings growth from every sector in the S&P 500, suggesting that there remains broad opportunity for investors across the market.

 

Chart 3. Initial Estimates Project the Potential for Positive Earnings Growth Across Sectors
S&P 500® Index projected earnings growth, calendar year 2019 estimates as of January 3, 2019

Source: FactSet. Past performance is not a reliable indicator or a guarantee of future results. For illustrative purposes only and does not represent any specific portfolio managed by Lord Abbett or any particular investment.
Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment.

 

Macro Backdrop
Much like corporate earnings, U.S. economic fundamentals also remain fairly supportive of equities, and don’t suggest an imminent recession as some believe the market’s fourth quarter swoon may have implied. U.S gross domestic product (GDP) grew by 4.2% during the second quarter of 2018, its fastest rate in five years, and followed that up by a 3.5% growth rate in the third quarter. Full-year 2018 estimates have the economy on track to grow by roughly 3%. While this rate of growth is expected to slow during the course of 2019 as the stimulative effects of tax reform roll off, initial estimates have the economy growing at 2.6% -- above the long-term trend rate of roughly 2%. In addition, U.S. consumer confidence remains strong, reaching an 18-year high in October, and U.S. unemployment dropped to a 50-year low at 3.7%.

Outside the United States, the picture is slightly less rosy. After global growth surprised to the upside in 2017, global macro conditions disappointed in 2018—leading the International Monetary Fund (IMF) to cut their global growth forecast from 3.9% to 3.7% for the year. Looking forward, the IMF expects global growth to hold steady at 3.7% in 2019; however, risks remain. In particular, spill-over effects from an escalating trade war between the United States and China have the potential to grind global trade lower, while headline risks in Europe (notably the ongoing Brexit saga) have the potential to add to volatility.

China
And of course, no discussion of the global macro backdrop would be complete without addressing China. The year 2019 began with a rude awakening in the form of disappointing Chinese manufacturing data, with Chinese manufacturing (as measured by the Purchasing Managers Index or PMI) falling into contraction territory in December  2018—the first time since 2017. While that June 2017 reading was just a one-month blip, what investors will be most fearful of is a prolonged period of Chinese growth concerns similar to the late 2015 and early 2016 period, when Chinese manufacturing PMI consistently fell into contractionary territory. While an escalation of the trade war with the United States would certainly continue to weigh on Chinese economic growth, there are some encouraging signs in the non-manufacturing sector of China’s economy, which continued to expand in December even as Chinese manufacturing faltered. With China news moving markets on a seemingly daily basis, a resolution to the U.S./China trade war and signs of Chinese economic stability in both its manufacturing and non-manufacturing sectors bears monitoring in 2019.

The Fed
After hiking its target interest rate four times in 2018, the Federal Reserve (Fed) offered slightly more dovish commentary in its statement following the meeting of the Federal Open Market Committee in December. While initial projections after the December meeting forecasted two additional rate increases in 2019, by the end of the month markets had begun to price in a likelihood of no additional rate hikes in the new year. With inflation slightly below the Fed’s 2% target and its target fed funds rate now at the lower-end of its neutral range (according to Fed Chairman Jerome Powell), monetary tightening may not present the same headwinds it did in 2018 when the Fed remained steadfast in its commitment to normalize rates at a consistent measured pace. In fact, the market responded positively on Friday (January 4, 2019) when Powell cited muted inflation readings, signaling that the Fed intends to be flexible rather than follow a preset plan for interest-rate hikes.   

President Trump
While the first year of the Trump presidency saw the Republican-controlled government enact a number of market friendly policies (including tax reform and broad deregulation), the second year saw some of the less market friendly policies of the Trump platform come to the forefront. Escalating trade rhetoric with long-standing partners was a key theme throughout 2018, and while a new trade agreement between the United States, Mexico, and Canada was ultimately reached in the second half of the year, there has yet to be any resolution to the trade war between the United States and China. In addition, continued focus on border security led to a government shutdown in December (with no resolution as of the start of 2019). With Democrats gaining control of the House during the midterm elections, there is the potential for the next two years to be characterized by political gridlock, with headlines (rather than policy) moving markets.

What does this all mean?
In sum, there are a lot of moving parts for equity investors to consider in 2019. With corporate earnings expected to grow at a nearly 8% pace next year and equity valuations below their long-term averages, we believe there is a solid foundation in place for strong equity returns in 2019. This is supported by a relatively strong economic backdrop that suggests a recession is not imminent, particularly in the United States. 

However, many of the same concerns that factored into the volatility at the end of 2018 remain present, including the potential for a slowdown in Chinese growth (and relatedly a slowdown in global growth), further political turmoil in the United States, and the risk that a spike in inflation could force the Fed into a more aggressive monetary posture than the market is assuming today.

In short, volatility is likely to remain present even if equities manage the double-digit return that earnings and multiples suggest they are capable of. In a volatile, late-cycle environment such as 2019 may be, it is imperative that equity investors be discerning as not only does growth become more scarce but also the absence of monetary or fiscal stimulus has the potential to lead to a larger bifurcation of winners and losers than has been experienced in recent years.

 

A Note about Risk:  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.

Statements concerning financial market trends are based on current market conditions, which will fluctuate. All investments involve risks, including the loss of principal invested.

Glossary of Terms

Federal funds rate (fed funds rate) is the interest rate at which a depository institution lends immediately available funds (balances at the Federal Reserve) to another depository institution overnight. 

Forward Price-to-Earnings Ratio: Stock analysts calculate a forward price-to-earnings (P/E) ratio by dividing a stock's current price by estimated future earnings per share. Some forward P/Es are calculated based on estimated earnings for the next four quarters, while others use actual earnings from the past two quarters with estimated earnings for the next two. A forward P/E may help you evaluate the current price of a stock in relation to what you can reasonably expect to happen in the near future. In contrast, a trailing P/E is based exclusively on past performance.

The S&P 500® Index is widely regarded as the standard for measuring large cap U.S. stock market performance and includes a representative sample of leading companies in leading industries.

Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment.

This material is provided for general and educational purposes only. The examples provided are for illustrative purposes only, and are not indicative of any particular investor situation.

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 herein is not directed at any investor or category of investors and is provided solely as general information about our products and services and to otherwise provide general investment education.  No information contained herein should be regarded as a suggestion to engage in or refrain from any investment-related course of action as Lord, Abbett & Co LLC (and its affiliates, “Lord Abbett”) is not undertaking to provide impartial investment advice, act as an impartial adviser, or give advice in a fiduciary capacity with respect to the materials presented herein.   If you are an individual retirement investor, contact your financial advisor or other non-Lord Abbett fiduciary about whether any given investment idea, strategy, product, or service described herein may be appropriate for your circumstances.

The opinions in Market View are as of the date of publication, are subject to change based on subsequent developments, and may not reflect the views of the firm as a whole. The material is not intended to be relied upon as a forecast, research, or investment advice, is not a recommendation or offer to buy or sell any securities or to adopt any investment strategy, and is not intended to predict or depict the performance of any investment. Readers should not assume that investments in companies, securities, sectors, and/or markets described were or will be profitable. Investing involves risk, including possible loss of principal. This document is prepared based on the information Lord Abbett deems reliable; however, Lord Abbett does not warrant the accuracy and completeness of the information. Investors should consult with a financial advisor prior to making an investment decision.

MARKET VIEW PDFs


  Market View

CONTRIBUTING STRATEGIST

RELATED FUND
The Lord Abbett Growth Leaders Fund Class A seeks to deliver long-term growth of capital by investing primarily in stocks of U.S. companies. Learn more.
RELATED FUND
The Calibrated Dividend Growth Fund invests primarily in stocks of large U.S. companies that have a history of increasing their dividends. Learn more.

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