Featured Investment Insights
ClearBridge's Paul Ehrlichman discusses the economic and investment implications of Britain's decision to leave the EU.
Royce's Frank Gannon discusses why small-cap value could continue to outperform small-cap growth.
Changing beliefs, perceptions and goals
Investing consistent with environmental, social and governance (ESG) principles can no longer be dismissed as a short-term fad. The negative consequences of ignoring ESG principles have become obvious, and certain large global consulting firms have even explicitly incorporated ESG into their investment belief statements.
A dividend-centric approach
Equities can provide income, but at the cost of higher potential volatility. But this challenge can be addressed by focusing on companies with sustainable dividends and low price volatility.
Equity-like Returns with Lower Risks?
With attractive risk-adjusted returns over the long run, high yield is now far from “junk" as an asset class. In today’s volatile environment, global high yield may be especially relevant for investors.
Volatility is an inevitable part of investing and when markets get bumpy opportunities can emerge for patient, value-oriented investors.
For your consideration
There's no shortage of anxiety in today's financial markets – whether it's geopolitics, valuation, or unprecedented global central bank policies. But where there's doubt, there can be opportunity. These five factors are worth considering for stocks in the U.S.:
Behind the decision
The Fed’s cautious risk management stance has been supportive of markets and perhaps of US economic growth. We expect the Fed to maintain that stance unless and until there is a material change in the outlook.
Western Asset's John Bellows
Little need to rock the boat, in a nod to market stability. A reason for the uncertainty: the Fed's priorities are affected by changing conditions. Meanwhile, observers both in the US and elsewhere are watching the clear, if slow, progress of the US economy.
Europe’s political and economic make-up could be radically altered after 23 June if the UK votes to leave the European Union (EU). Would ‘Brexit’ be the seismic event many predict, or just prove to be a hump in the road? Michael Browne and Steve Frost examine the potential implications for European investors.
The Fed's decision to leave rates at the current level is yet another sign that the FOMC is paying close attention to the near-term disruption that an early rate hike could cause. But the Fed slightly dialed back the tone of its stated concern about global risks, suggesting to some readers that sentiment may have shifted slightly – at least for now – in the direction of a hike in July rather than in September.
Good sports teams benefit from having different types of players on the field together, and that principle applies to portfolio construction as well, notes ClearBridge's Margaret Vitrano.
Though overlooked by many in the turbulence of equity markets since mid-2015, there’s been a developing shift in leadership in US equities – with value stocks outperforming the growth-oriented stocks that have mostly led the pack since the beginning of the 7-year-long bull market. The shift is seen most clearly in year-over-year performance; since February 5, 2016, the Russell 2000 Value Index has outperformed the Russell 2000 Growth Index.
Puerto Rico municipal debt
Puerto Rico’s recent move to suspend all debt payments until 2017 aggravates the risks in an already-uncertain municipal debt complex.
Fears vs. Facts
The gap between the fears weighing on markets and the underlying facts could provide opportunity for active managers.
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