Market Outlook · June 22, 2020

Everything But the Kitchen Sink, Infrastructure Spending and is Tech Really That Expensive?

Brent Ciliano

CFA | SVP, Chief Investment Officer

1 Everything but the kitchen sink—is fiscal stimulus #5 on the way?

Discussions about a possible new infrastructure package has reignited investor interest in what is happening on the next round of stimulus.

2 Infrastructure spending—will it really happen this time?

Bloomberg is reporting the Trump Administration is pushing for infrastructure spending. We'll discuss a few key points.

3 Are the FAAMGs/tech really expensive? What about the S&P 500 or Euro Stoxx 600? Are they expensive too?

How often do high-flying tech stocks get mentioned in financial press? It seems like I see something written on them almost every day! So much is said about their meteoric rise in price, their large and growing weights present in market indexes, the extent which growth stocks have been trouncing value stocks, and most recently, "These stocks are expensive." But are they?

4 Positive US economic momentum—but will it have legs?

The economic bounce looks durable at this point, and record-strong growth numbers are following record-weak readings. There’s likely more to go, but this re-acceleration in economic activity needs to be put into perspective.

5 TINA’s looking more like a secular story—will she continue to support risk assets?

Investors still, and likely will always, demand a reasonable real return on their investments. With global cash and fixed income around the world yielding virtually zero to negative real returns, that desire for a positive real return will likely continue to support stocks and other risk assets.

Your investments in securities, annuities and insurance are not insured by the FDIC or any other federal government agency and may lose value. They are not a deposit or other obligation of, or guaranteed by any bank or bank affiliate and are subject to investment risks, including possible loss of the principal amount invested. Past performance does not guarantee future results.

First Citizens Wealth Management is a registered trademark of First Citizens BancShares, Inc. First Citizens Wealth Management products and services are offered by First-Citizens Bank & Trust Company, Member FDIC; First Citizens Investor Services, Inc., Member FINRA and SIPC, an SEC-registered broker-dealer and investment advisor; and First Citizens Asset Management, Inc., an SEC-registered investment advisor.

Brokerage and investment advisory services are offered through First Citizens Investor Services, Inc., Member FINRA and SIPC. First Citizens Asset Management, Inc. provides investment advisory services.

Bank deposit products are offered by First Citizens Bank, Member FDIC.

Links to third-party websites may have a privacy policy different from First Citizens Bank and may provide less security than this website. First Citizens Bank and its affiliates are not responsible for the products, services and content on any third-party website.