Loomis Sayles on Investors’ Biggest Challenge

A recent article in Advisor Perspectives offers market insights from Dan Fuss, vice chairman of Loomis Sayles, who argues that climate change is now “the greatest challenge facing society and the markets.” According to Fuss, policymakers are trapped by a “two-step environment” in which climate change must be addressed but global policies must be put in place to address it. Climate change, says Fuss, has caused vulnerability in the global supply chain. Other market insights… Read More

Loomis Sayles’ Bond Manager on Trade

John Waggoner of Investment News recently spoke with Dan Fuss, a bond expert and 42-year veteran of Loomis Sayles, about new risks facing investors. Here are some highlights: Fuss expects the Fed to implement another two to three rate hikes this year. On corporate spending and wage increases, Fuss says he believes some of the big industrials (citing Caterpillar and Deere as examples) are incorporating contingencies in their spending plans: “If the trade barriers start,… Read More

Loomis Sayles’ Fuss Increasingly Cautious on Bonds

As political uncertainties “cloud an otherwise solid economic outlook,” Loomis Sayles vice chairman Dan Fuss says he is more cautious on bonds than he has been since the 1970s, says a recent CNBC article. In a Reuters interview from earlier this month, the octogenarian (and one of the world’s longest serving fund managers) says he has cut the average maturity of holdings in the firm’s flagship bond fund to 6 ½ years. Sometimes called “the… Read More

Dan Fuss, the “Four Ps” and the Bond Market

Dan Fuss, vice-chairman of Loomis Sayles and manager of the Loomis Sales Bond Fund, has been in the fixed-income markets more than half a century. Over the last ten years, his fund has outperformed 92% of its peers, although it’s near the bottom for this year. Fuss says, “In the fixed-income markets, we have to deal with low rates and low inflation,” continuing, “both will rise. That is not a good combination.” More broadly, he… Read More

Top Bond Managers Look for More QE

Three top bond fund manager says that a weakening U.S. economy will lead the Federal Reserve to enact “QE3” — another round of quantitative easing — and they are positioning their portfolios accordingly. “I just don’t think that we have a healthy fundamental foundation for the economy and therefore surprises are likely to be on the negative side,” Jeffrey Gundlach tells Bloomberg, which reports that his fund, which invests in mortgages, had 34% of its… Read More