LOOKING BEYOND TODAY’S VOLATILITY
Position your portfolio for recovery while recognizing the risks still looming in the markets.
Updated as of July 23, 2020
What our managers are saying
- ClearBridge – Recovery Indicators: FOMO or FOGO?
Labor market weakness and consumer caution will weigh on the recovery, but equity markets typically follow the kind of rally seen in Q2 with gains over the following year.
- Brandywine Global – Social and Economic Consequences from COVID-19
The pandemic has created a fertile environment for social unrest, with much depending on what governments do.
- Western Asset – Fallen Angels Could Bring Opportunities
The recent wave of corporate bond downgrades has dropped many companies' debt into the high-yield sector. But could some "fallen angels" rise again?
Persistent volatility is a major concern for investors now, given continuing uncertainty about the state of public health and the global economy.
“We have never before experienced anything like COVID-19…as [Fed Chair] Powell has said, forecasts in this environment are practically useless. As investors, how are we to advance through the fog?
-- Ken Leech, Chief Investment Officer, Western Asset
It’s a perfect storm for anxious investors who wonder if they should shift money around to prepare for a worst-case scenario.
Of course, in investing, we may never know the future, but we can prepare for it. That’s why we make long-term plans – to have portfolios that can take us through market volatility, as well as periods of gain.
So before you abandon any plan, first revisit your goals, since these are the foundation of any well-considered investment strategy. Has the COVID crisis changed those goals? You may find that they remain unchanged.
If you do want to adjust your portfolio, reach out to your financial professional for advice. And take advantage of a mix of active and passive strategies – which together provide opportunity for alpha as well as a baseline for the broad market.
Resources for Financial Professionals
The COVID-19 crisis is serious, but US stocks have ultimately overcome many serious challenges since the 70’s. Explore our exclusive “Lessons of Time” page for help seeing beyond the current panic.
Our Recession Risk dashboard is flashing red, showing a pullback already under way. Check out our new Recovery Dashboard for the indicators needed to trigger a lasting economic expansion.
COVID-19 is the World Health Organization's official designation of the current novel coronavirus disease. The virus causing the novel coronavirus disease is known as SARSCoV-2.
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Carefully consider a fund's investment objectives, risks, charges and expenses before investing. Please view the prospectus or summary prospectus for this and other information. Read it carefully.
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Active management does not ensure gains or protect against market declines.
Equity securities are subject to price fluctuation and possible loss of principal.
Diversification does not guarantee a profit or protect against loss.
Outperformance does not imply positive results.
The information presented here is general in nature and does not constitute legal advice on any particular matter. Please note that all references to third-party corporations and websites do not constitute a recommendation or endorsement by Legg Mason Investor Services, LLC.