Going into July, leading indicators and relative valuations lead multi-asset strategist Doug Sue to see greater potential for stocks than bonds this month.
Last month showed vividly that sentiment can shift rapidly even when fundamentals stay solid; the heightened focus on the Fed and inflation is likely to persist, although we expect the impact of upcoming increases to be primarily on short-term rates.
Our outlook weakened further at the end of January, with declines in global trade data and new orders inventory driving the drop.
Why it's important to diversify equity exposure during volatile markets and the later stages of a market cycle.
Recent volatility is forcing investors to question whether the diversification measures they now have in place will truly hold up going forward.
Chart of the Week
Chart courtesy of Clarion Partners. * Source: CBRE-EA, Clarion Partners Investment Research, Q3 2018, latest available figures. Past performance is no guarantee of future results. This information is provided for illustrative purposes only and does not reflect the performance of an actual investment.
Chart of the Week
U.S. consumers had a downbeat December; China-U.S. trade talks were set to reconvene in Washington; Mexico's Pemex got yet more help; U.K. clothiers discounted deeply, pre-Brexit
Uncertainty is a fierce opponent, whether you're picking players or securities. Investors, however, can learn valuable lessons from how football teams approach their annual drafts to help build stronger, more durable portfolios.
Emerging markets stocks
It's important for investors to consider the inherent concentration risks that may be embedded in their equity portfolios -- including their emerging markets allocation.
Dovish policies under former Fed Chair Yellen have helped restore growth and inflation; however, there's reason for investors to expect a more hawkish tilt under new Fed Chairman Powell.
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