Valuations support our view that U.S. stocks are positioned to underperform their international-developed market counterparts.
Recent volatility is forcing investors to question whether the diversification measures they now have in place will truly hold up going forward.
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.
Stocks with high current dividends and stocks that consistently increase dividends both have unique characteristics that can affect investor outcomes.
The current market environment may be well-suited for investors looking to rebalance equity portfolios to lower overall volatility.
Chart of the Week
Chart courtesy of Brandywine Global. Source: Bloomberg, as of 11/12/2019. 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
Current market uncertainties are generating potential opportunities for income investors.
Lower volatility stocks with sustainable dividends and attractive valuations may provide a defensive tilt to portfolios in a late cycle environment.
Recent extremes in the returns for Value and Momentum stocks could be suggesting a change in leadership ahead.
Defensive equity income provides investors with an attractive source of dividends which play an increasingly integral role during low equity return environments.
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