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

Addressing political uncertainty and renewed market volatility.

 

In Brief

  • Amid uncertainty surrounding the U.S. midterm elections, and a renewed bout of market volatility, we thought it would be a good idea to provide a fresh update on the investment backdrop by addressing five key questions.
  • For this article, we asked our investment experts to provide updates on the current equity market; trends in U.S. corporate earnings; broader economic fundamentals; a sensible approach to market volatility; and the potential investment impact of the U.S. midterm elections.
  • Based on our experts’ responses, we would once again emphasize that investors focus on the current fundamental strength of the U.S. economy, and maintain a patient, long-term approach to their investment portfolios amid the current volatility.

 

In recent weeks, Market View has focused on two major threads that investors in U.S. assets have been following closely. On October 1, we featured Lord Abbett experts' views on how the U.S. midterm elections might influence the economy and markets. Two weeks later, we surveyed the resurgence in market volatility. Since then, there have been a number of additional developments to weigh: U.S. interest rates have whipsawed; geopolitical hot buttons (Brexit, Italy’s fiscal woes, U.S. trade friction with China, controversy surrounding Saudi Arabia’s alleged role in the death of a journalist) have gotten hotter; and third-quarter U.S. earnings season has moved into high gear. Meanwhile, President Trump has roundly criticized U.S. Federal Reserve (Fed) rate hikes, and floated a middle-class tax cut plan that took the U.S. Congress, and pretty much everyone else, by surprise.

In this fluid environment, we thought it would be a good idea to provide a fresh update on the investment backdrop. Here we answer five key questions that may be top of mind for investors at the current moment.

1. What’s been going on in the U.S. equity market?
The week of October 22 was rather tough on U.S. equity markets. On Wednesday, October 24, both the S&P 500® Index and the Dow Jones Industrial Average fell to negative territory for the year. Major indexes staged a partial recovery on Thursday, October 25, only to decline again the following day. The potential contributors to the volatility included concerns about a slowdown in U.S. corporate earnings growth; escalating trade tensions between the United States and China; higher interest rates; a stronger U.S. dollar; and the prospect of global economic weakness. The barrage of corporate profit reports during the week included disappointing earnings and revenue numbers from heavyweights such as AT&T, Amazon, and United Parcel Service. A Lord Abbett strategy brief issued on October 26 noted that “with the absence of a tax-cut boost and the likelihood of higher interest rates, which can raise the borrowing costs of businesses, there are concerns that companies’ earnings growth will slow.”

The VIX Index, which is sometimes referred to as the market’s “fear gauge,” spiked due to the recent sell-off in equities, and reached a level above 25 for the first time since February. (See Chart 1.) The October 26 strategy brief noted that “it is likely that there will be additional volatility as companies continue to report quarterly earnings.” It is worth pointing out that October historically has been a month with above-average volatility for U.S. stocks.
 

Chart 1. Once Again, October Has Been a Volatile Month for U.S. Stocks
VIX Index, October 27, 2017-October 26, 2018

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

 

2. Speaking of U.S. corporate earnings, how have they been holding up?
According to data from FactSet, through October 26, 48% of the companies in the S&P 500 had reported third-quarter results.1  Of those companies, 77% had reported a positive earnings per share (EPS) surprise and 59% had posted a positive sales surprise. The blended earnings growth rate for the S&P 500, at 22.5%, represented the third highest growth pace since the third quarter of 2010. But the news was not all good: For the fourth quarter of 2018, 26 S&P 500 companies had issued negative EPS guidance, compared to 15 providing positive guidance.

A research brief from Credit Suisse issued on October 29 noted the “problematic” narrative around corporate guidance.2 But a Credit Suisse analyst said that third-quarter data indicates that “profits look intact for much of the market,” with negative revisions limited to groups with high economic sensitivity (autos, materials, and capital goods) or those lacking pricing power (consumer staples and telecom).

What about next year? In a note issued October 25, Lord Abbett Partner and Director of Strategic Asset Allocation Giulio Martini observed that earnings forecasts for 2019, after the tax law has been fully factored in, “have always reflected the expectation of a sharp slowdown.” With the U.S. economy receiving substantial fiscal stimulus over the next few quarters—around 1% of GDP from the release of spending caps on federal defense and non-defense spending—and consumer spending fueled by strong employment and income growth, Martini said “U.S. companies should be able to perform better than non-U.S. companies that are more exposed to the slowdown in global trade.”

3. What about broader fundamentals?
Despite the gloom in financial markets, U.S. economic news has continued to be positive. Gross domestic product (GDP) expanded by a 3.5% annual rate in the third quarter of 2018, according to a preliminary estimate issued by the U.S. Bureau of Economic Analysis (BEA) on October 26, ahead of economists' estimates of a 3.4% increase tracked by Dow Jones. The BEA report showed that the PCE price index, a key measure of inflation, increased by 1.6% during the quarter, well below the 2.2% increase expected by economists.

Martini recently told Market View that “the United States is really accelerating in part because of the stimulative effect of the fiscal policy package that was passed and of the tax reform that was put into effect late last year.” Thus, the United States is getting a domestic stimulus that contrasts with the negative effect of the downturn in global trade in the rest of the world. “And so we're really seeing the U.S. economy pick up just as the rest of the world turns down,” Martini added. Indeed, Martini noted that surveys of purchasing manager sentiment for October showed that the United States and Japan were well outperforming the euro area, where sentiment is now back down to levels that predate the global growth acceleration in 2016. Meanwhile, “China is implementing fiscal stimulus and other measures designed to mitigate the effects” of tightening domestic credit, which “should be felt more broadly in the fourth quarter and first half of 2019.”

4. What should equity investors be thinking about amid the current volatility?
This question comes up frequently in our investment conversations. As long-term investors, we have always counseled a patient approach during times of market turmoil. We believe this philosophy is validated by a chart we have used over the years to illustrate just how common big market downturns are—and that they don’t necessarily lead to full-year losses.

 

Chart 2. Drawdowns Have Been Common, But They Haven’t Always Translated Into Full-Year Declines
S&P 500 annual price returns versus maximum price decline, as of December 31, 2017

Source: Morningstar.
Note: The historical data are for illustrative purposes only, do not represent the performance of any specific portfolio managed by Lord Abbett or any particular investment, and are not intended to predict or depict future results. Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment. 
Past performance is not a reliable indicator or guarantee of future results.

 

5. What are your latest views on the potential implications of the U.S. midterms?
As noted earlier, we published a detailed summary of our investment experts’ views on the U.S. midterm elections on October 1. But we’ve continued to receive questions on the upcoming contest. So we asked Leah Traub, partner and portfolio manager, for her thoughts.

If Republicans keep the House and Senate, Traub expects that Trump will push for another tax cut that may provide a sentiment boost for the markets and also offer another temporary lift to U.S. GDP after it is enacted. She thinks U.S. Treasury yields, however, likely will rise as the Fed will be more likely to remain on course for further rate hikes. “This will prevent other developed market currencies from rising too much against the dollar as the interest rate differential widens out even further in favor of the United States,” she says.

Traub believes the most likely scenario is that the Democrats gain control of the House while the Republicans keep the Senate. In that case, she thinks further tax cuts are unlikely. “The economy is still doing well, so nothing is really needed on the policy front,” she says. Attention may turn more toward the probe of Russian interference in the 2016 U.S. presidential election, and Traub thinks further sanctions against Russia would be likely. Ultimately, “markets will trade more on the U.S. and global economic outlooks rather than anything to do with what’s happening—or not happening—in D.C.” Under the least likely scenario of a Democratic sweep of both houses of Congress, Traub thinks the markets may sell off on is the possibility of an attempt to reverse the 2017 U.S. tax cuts or other measures. “While that is not likely to be successful, the markets will have to price in some probability it will be.”  

As for the municipal bond market, Lord Abbett Partner and Director of Municipal Bonds Dan Solender offered an updated view based on recent developments. Trump’s idea for a second round of U.S. tax cuts focused on the middle class “is no longer just a hypothetical, because if Republicans keep control of both the House and the Senate this is clearly on the agenda,” Solender says.

Solender also noted the release of figures showing a growing U.S. deficit as the decreased revenues from tax cuts have, at least in the short term, created an unbalanced budget. He said that Trump recently requested 5% budget cuts from U.S. government agencies. “It is unclear where these cuts will come from, but we will need to watch to determine whether it will have an impact on state and local budgets,” and how—and where— the cuts may be need to be implemented.

Summing Up
In addressing the torrent of headlines surrounding the U.S. midterm elections, the global economy, and the gyrations of the U.S. stock market, we believe investors’ response should be twofold. First, they should focus on the fundamental strength of the U.S. economy, especially as it relates to the rest of the world. In light of that broad-based strength, we think the second point is clear: A market sell-off in a fundamentally strong economic environment should not by itself be seen as a reason to abandon sound long-term strategies that offer investment opportunity.

 

1FactSet, “Earnings Insight,” October 26, 2018.
2Credit Suisse, “U.S. Equity Strategy: Revisions –You Can’t Handle the Truth,” October 29, 2018.


MARKET VIEW PDFs
 

  Market View
  U.S. Market Monitor

CONTRIBUTING EXPERTS

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