Navigation Links
Economic Headwinds a 'Very Big Deal' to Virtus Strategist

HARTFORD, Conn., April 27 /PRNewswire-FirstCall/ -- The "Great Reflation Experiment" -- or the unprecedented attempt by U.S. policymakers to resuscitate the economy following the recent recession -- has been successful to date, but not because of traditional macroeconomic efforts.  Rather, says Max Bublitz, chief strategist and portfolio manager at SCM Advisors LLC, an affiliated investment manager of Virtus Investment Partners (Nasdaq: VRTS), "it has been achieved indirectly through the partial repair of the left side of consumer's badly damaged balance sheets, via higher prices for risk assets."

(Logo: )

"We've often said that there is a significant difference between economic recovery and expansion, and we continue to believe that while we may be in a statistical recovery, many are not -- and won't be -- feeling it," Bublitz says in his latest quarterly commentary.  "The financial crisis, deficits as far as the eye can see and a general distrust of Washington are leading the social mood to take a turn for the worse.

It will take bolstered consumer confidence, above all else, for a true economic revival, Bublitz says.  Given the lingering weakness in home prices and the expected hike in taxes, a stronger labor market becomes all the more important.

He cites the incremental improvements in the U.S. jobs data, such as the drop in the unemployment rate to 9.7 percent in February from 10.1 percent in October, as a promising sign of restoration.  However, since the number of employed has just returned to levels of 11 years ago, "the best you can say about the labor market is that firings are stabilizing, while hiring remains anemic."

Despite reports of continued low and falling consumer inflation, wage gains have been growing at an even slower rate, and Bublitz maintains that "disinflation remains the fact, while inflation remains the fear."

"The inner cogs of the financial system have been so distorted by government intervention that it has become increasingly difficult to grasp the full meaning of such things as negative T-bill rates and negative swap spreads."  Having set the expectation that the Treasury yield curve will be higher and flatter in a year's time, it may need to become steeper first, "if only to create a 'pain-trade' and a little more market balance," say Bublitz, who shares his commentary on the bond market in his regular blog on

"It is not clear to us that the narrative of the financial crisis is being properly written," he concludes.  "Yes, the Great Reflation Experiment did stave off financial collapse, but that in no way implies that the U.S. and global economies will be made whole."

About Virtus Investment Partners, Inc.

Virtus Investment Partners (Nasdaq: VRTS) is a distinctive partnership of boutique investment managers singularly committed to the long-term success of individual and institutional investors. The company provides investment management products and services through its affiliated managers and select subadvisers, each with a distinct investment style, autonomous investment process and individual brand. Virtus Investment Partners offers access to a variety of investment styles across multiple disciplines to meet a wide array of investor needs. Additional information can be found at

Virtus Investment Partners provides this communication as a matter of general information. The opinions stated herein are those of the author and not necessarily the opinions of Virtus, its affiliates or its subadvisers. Portfolio managers at Virtus make investment decisions in accordance with specific client guidelines and restrictions. As a result, client accounts may differ in strategy and composition from the information presented herein. Any facts and statistics quoted are from sources believed to be reliable, but they may be incomplete or condensed, and we do not guarantee their accuracy. This communication is not an offer or solicitation to purchase or sell any security, and it is not a research report. Individuals should consult with a qualified financial professional before making any investment decisions.

SOURCE Virtus Investment Partners, Inc.
Copyright©2010 PR Newswire.
All rights reserved

Related biology news :

1. Main Street economic conditions misread by GDP
2. Low socioeconomic status affects cortisol levels in children over time
3. TEEB report released on the economics of ecosystems and biodiversity for policy makers
4. New theory on fairness in economics targets CEO pay
5. TGen provides Arizona with $77 million in annual economic impact
6. No comfort in comfort foods during tough economic times, says Moore School of Business study
7. People of higher socioeconomic status choose better diets -- but pay more per calorie
8. In troubled economic times, BioSquare 2009 successfully serves as business and innovation starter
9. Shark attacks decline worldwide in midst of economic recession
10. Capillary mats labor-saving, economical alternative to hand watering
11. Basic research critical to Americas economic recovery
Post Your Comments:
(Date:11/17/2015)... -- Vigilant Solutions announces today that Mr. Dick W. ... --> --> Mr. Boyce ... at TPG Capital, one of the largest global investment ... revenue.  He founded and led TPG,s Operating Group, which ... 1997 to 2013.  In his first role, he served ...
(Date:11/12/2015)... , Nov. 12, 2015  Arxspan has ... of MIT and Harvard for use of its ... information management tools. The partnership will support the ... biological and chemical research information internally and with ... be used for managing the Institute,s electronic laboratory ...
(Date:11/10/2015)... About signature verification Signature ... identify and verify the identity of an individual ... secure and accurate method of authentication and is ... because each individual,s signature is highly unique. Signature ... signature of an individual is compared and matched ...
Breaking Biology News(10 mins):
(Date:12/1/2015)... Dec. 1, 2015 Today the Allen Institute ... Seattle,s South Lake Union neighborhood, the ... Mercer Street and Westlake Avenue North, the 270,000 square ... Institute for Brain Science and the Allen Institute for ... and founder of the Allen Institute. "We started by ...
(Date:12/1/2015)... Oxford Finance LLC ("Oxford"), a specialty finance ... healthcare services companies, today announced the closing of a ... ("the Company"). Proceeds from the loan are being used ... Rejuvaphyl™ and daily skincare products. --> ... of high potency skincare products that contain the proprietary ...
(Date:12/1/2015)... , ... December 01, 2015 , ... ... announces Park NX10 SICM Module, an add-on scanning ion conductance microscopy module to ... of SICM to an AFM. , Park SICM benefits virtually all materials characterization ...
(Date:12/1/2015)... 1, 2015 Cepheid (Nasdaq: CPHD ) ... the Piper Jaffray Healthcare Conference in New ... is reaffirming its outlook for the fourth quarter of ... to discussing longer term business model expectations. ...  "We continue to be the fastest growing company of ...
Breaking Biology Technology: