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2020 State Budget Outlook

Fiscal Year (FY) 2019 revenues universally exceeded budget expectations. No states made mid-year budget cuts based on revenue shortfalls. That’s down from a peak of 41 in FY2009 and 22 states in FY2017. The revenue outperformance has allowed 28 states to add to reserves.1 Median rainy day fund levels hit an all-time high of 7.5% of general fund spending, up from 1.6% in fiscal 2010.2 At the median, states are more resilient now than the prior year, but outliers still exist.


Chief Investment Strategist Jim McDonald explains how we are positioning our portfolios as we head into the New Year.

The mash-up of slowing growth, muted inflation, and easing monetary policy continues to create an atypical investment backdrop for investors.

With the global economic expansion closing in on its 10th year, investors are starting to get nervous. Will global growth come to an end? What will central banks do? Our six investment themes for the next five years may help.