Our proprietary leading economic indicator moved into negative territory in May, reflecting weakness in global trade data, manufacturing data and initial claims data.
The current market environment may be well-suited for investors looking to rebalance equity portfolios to lower overall volatility.
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.
Going into July, leading indicators and relative valuations lead multi-asset strategist Doug Sue to see greater potential for stocks than bonds this month.
Chart of the Week
Chart courtesy of ClearBridge Investments. Source: Bloomberg, as of 5/31/19. Returns are cumulative and based on price movement only, and do not include the reinvestment of dividends. +101% for S&P 500 measures 10/09/02-10/12/2007 and +218% for MSCI ACWI ex-U.S. measures 3/12/03-10/31/07. 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
China’s latest tariffs focus on U.S. agricultural exports; financial markets are pricing in at least one Fed rate cut this year; U.S. consumers’ debt load reached $13.67 trillion, with student debt outstripping auto loans.
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