Why it's important to diversify equity exposure during volatile markets and the later stages of a market cycle.
Defensive equity income provides investors with an attractive source of dividends which play an increasingly integral role during low equity return environments.
The current market environment may be well-suited for investors looking to rebalance equity portfolios to lower overall volatility.
Recent volatility is forcing investors to question whether the diversification measures they now have in place will truly hold up going forward.
The outlook for U.S. stocks to outperform investment grade bonds remains in positive territory, despite the QS proprietary leading economic indicator slipping into negative territory.
Chart of the Week
Chart courtesy of ClearBridge Investments. Source: Bloomberg, as of 9/30/19. Past performance is no guarantee of future results. Indexes are unmanaged, and not available for direct investment. Index returns do not include fees or sales charges. This information is provided for illustrative purposes only and does not reflect the performance of an actual investment.
Chart of the Week
Current market uncertainties are generating potential opportunities for income investors.
Recent extremes in the returns for Value and Momentum stocks could be suggesting a change in leadership ahead.
Dividend stocks in defensive sectors, which exhibit lower overall beta and less vulnerability to drawdowns, could be useful to many investors in the current environment.
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