One of the things I love most about my job is the opportunity to talk with investment experts about their views of the world and the opportunities they see on the horizon — to ask them the candid questions that are on my mind and the minds of many of you as well. I don’t run into these folks in the office hallways anymore — but I find their insights to be more critical than ever. That’s why I’m excited to co-host Invesco’s new podcast, Greater Possibilities, which gives us a new forum to have these conversations — and gives you the opportunity to listen in.
Along with my co-host, Invesco’s Pam Mutumwa, we’ve recorded two episodes so far, and the next one is around the corner. Here are some of the highlights, and info on how to subscribe:
Episode 1: The road ahead for munis
How have municipalities held up during the COVID-19 crisis, and what may be in store for this asset class under a Biden administration? Mark Paris and Stephanie Larosiliere from the Invesco Municipal Bond team joined the podcast to talk about what kept them up at night during the depths of the crisis, the factors that helped munis weather the storm, and where they see greater possibilities ahead in 2021.
We recorded this episode before the results of the Georgia Senate run-offs, so it wasn’t yet clear whether the Senate was going to be Democratic or Republican. But what was very clear is that while states have certainly been stressed during the pandemic, in general, they look well-positioned to weather the storm thanks to rainy-day funds, the ability to raise taxes if necessary, and access to the municipal market.
“We’re convinced that all 50 states are going to do just fine — that there’s not an overwhelming amount of pension problems or cost problems,” said Mark Paris, Chief Investment Officer and Head of Municipals. “But look, let’s face it. It’s stressful. It’s stressful to have less revenue coming in. It’s stressful to have to pay money out to make sure that things are running on a regular basis, the services that the state gives. And it’s going to take time for them to come back. We see this as a multiyear rebuild, the same way that 2009, 2010, 2011 was a rebuild for the economy.”
Tune into the podcast on iTunes, Spotify or Google Podcasts to hear more about the state of the states, as well as the team’s views on airports, mass transportation, health care facilities, continuing care retirement communities and much more.
Episode 2: What’s in store for markets in 2021?
2020 was a disastrous year for the economy, yet equities had a great run off of their March lows. Looking into 2021, where do we go from here? Naysayers are worried that markets have gotten way ahead of themselves, while opportunists want to know if they should position their portfolios for an economic recovery.
We were joined by Kristina Hooper, Talley Leger and Alessio de Longis to discuss their outlook for the economy and markets. While everyone acknowledged the risks that face an economic recovery (such as the different strains of the virus that may be more contagious), the tone was decidedly optimistic given the rollout of effective vaccines.
“I think this recovery is going to be different than the recovery coming out of the global financial crisis. I think this recovery is going to be more robust and inclusive upfront,” said Kristina Hooper, Invesco’s Chief Global Market Strategist. “I think of the economy as a coiled spring and one that we’re likely to see result in some very strong spending, once things return to something of normal.”
And what do market indicators tell us? “Ultimately, what this is telling us is a non-inflationary growth environment seems to be in the cards, which would be very positive for investors and the economy more broadly,” added Alessio de Longis, Senior Portfolio Manager for Invesco Investment Solutions.
Tune into the podcast on iTunes, Spotify or Google Podcasts to hear about which indicators our guests rely on to gauge the path of the economy, how a recovery trade may play out this year, and what a non-inflationary growth environment may mean for various asset classes.
Blog header image: Akela- From Alp to Alp / Stocksy
Municipal securities are subject to the risk that legislative or economic conditions could affect an issuer’s ability to make payments of principal and/ or interest.
The opinions referenced above are those of the author as of Jan. 20, 2021. These comments should not be construed as recommendations, but as an illustration of broader themes. Forward-looking statements are not guarantees of future results. They involve risks, uncertainties and assumptions; there can be no assurance that actual results will not differ materially from expectations.