The recent stall-out in US bond yields has thrown equity investors into a funk. But, in our view, it’s a pause that refreshes. Remember, there are still powerfully supportive forces in play for the economy and stocks.
Driverless cars may be the wave of the future. But when it comes to bond investing, it’s best to keep your hands on the wheel. Anything less could do serious damage to your fixed-income portfolio.
China A-shares could shortly be included in a key international benchmark for the first time—in a way that highlights smarter efforts by the West to help China integrate fully into global markets.
It’s hard to say how healthcare reform will affect the broad municipal bond market. But any new law with the potential to cause millions to lose insurance would be a bitter pill for hospitals. Investors should tread carefully.
Financial markets will welcome the election of centrist, pro-European Emmanuel Macron as France’s next president. Now that Europe has avoided a major political upset, all eyes will be on the ECB and its next move.
In an interview, AB’s new US Senior Economist, Eric Winograd, explains why he expects the US economy to continue growing and the Fed to raise rates two more times this year. He also highlights two risks: populism and protectionism.
With the S&P 500 Index touching new highs, where’s the US equity market heading? Our US portfolio managers addressed five big questions that are on investors’ minds about valuations, opportunities and risks in the market today.
Investors in European stocks are facing multiple sources of risk. Applying the mindset of strategic business owners can help tune out the noise and sharpen investors’ focus on more resilient sources of return potential.
Proposed US tax cuts—if they happen—would be a nice boon for corporate bottom lines. But for most companies, the boost to underlying earnings power would likely be fleeting. To find tax-reform winners, look for the exceptions.
More and more investors are globalizing their bond portfolios these days—with good reason. But when it comes to reducing risk, active management is essential. The French presidential election is just one reason.
Financial markets welcomed the result of the first round of the French elections on Sunday. Yet voting patterns and the political reality facing the next French president leave much to ponder.
British Prime Minister Theresa May has called a snap election on June 8. With only a slim majority in parliament, she hopes to strengthen her position ahead of complex Brexit negotiations.
With inflationary pressures under control and external balances improving, many emerging-market (EM) countries are working on the next item on their to-do lists: reigning in fiscal deficits. That’s good news for emerging equities, dollar-denominated bonds and local-currency debt.
With the US beginning to normalize official short-term interest rates, global monetary policy is becoming less accommodative overall. Meanwhile, the global economy seems poised for its best year of growth since 2010. Explore the factors driving our assessment in the latest global cyclical outlook.
Though the “Trump bump” helped, the year-old winning streak in smaller stocks owes far more to the spirited US economy. This rally has firepower, but we’d be choosy in riding the next leg higher.
Minutes from the Federal Reserve Open Market Committee (FOMC) March meeting highlight key aspects of the committee’s thinking, including the committee’s intent to reduce its balance sheet gradually over time.
Global equities enjoyed a strong start in 2017, driven by optimism about economic growth in the US and Europe. But political risk and valuation concerns undermined confidence toward quarter-end, highlighting a key dilemma facing investors this year.
Despite uncertainty about global politics and policy, stock markets are soaring and volatility is low. Does this mean it’s time for investors to double down on growth-oriented assets? Not necessarily.
Britain’s divorce from the EU is underway, but the complex negotiating process has just begun. We believe a mutually beneficial deal can be reached—as long as both sides focus on the risks of failure.
Passive global bond investors may be getting more than they bargained for—in terms of risk, that is. That’s because lower-yielding debt is overrepresented in the benchmark, providing less buffer—and passive investing locks other types of risk into the portfolio.
Responsible investing means different things to different people. There are pros and cons to each method of incorporating environmental, social and governance factors into investment portfolios.
As interest rates nudge higher, many municipal bond investors worry about the impact on their portfolios. Muni credit, which holds its value better when rates rise, could be the solution.
Emerging markets often lag behind developed countries when it comes to technology adoption. But things are changing. Developing-world countries and companies are rapidly becoming Internet trendsetters—especially in online retail and digital payments.
Yield-hungry investors are quickly regaining their taste for deeply subordinated bank bonds. Some of these securities offer appetizing yields, but it’s important not to overindulge.
President Trump’s administration wants US multinationals to bring offshore manufacturing and jobs back home. Apple’s iPhone is one example, uncovered by our research, of the complexities involved in dismantling international supply chains.
There’s a lot of uncertainty today for municipal bond investors: how do you hang onto the income you have in the face of rising rates and the potential for tax reform, and where should you look for more? We think muni credit is a good place to point the shovel.
An opportunity may be arising in one of the forgotten corners of the global fixed-income market—Japanese inflation-linked bonds (JGBi), or “linkers.” Active global bond investors can take advantage.
Great companies can come from anywhere, and emerging markets have more than their fair share. We’ve identified three megatrends we expect to give birth to tomorrow’s superstars—and that no globally inclined portfolio should be without.
Many plan sponsors are shifting away from recordkeepers’ target-date funds to nonproprietary versions. But others are still using yesterday’s model. We think it’s time to take a look around.
Government-led initiatives are shaking up the economic landscape in India. Despite the challenges, we discovered that consumers are embracing change and feeling confident about the future in ways that could open new opportunities for investors.
US economic policies have always mattered to international investors. While President Trump’s agenda is still taking shape, equity investors can already map out broad guidelines for identifying winners and losers among companies outside the US.
Not long ago, we suggested that investors who wanted to make their equity portfolios less volatile add a dash of high-yield bonds. There’s a similar low-volatility strategy available to high-yield investors: shorten duration and focus on quality.
As earnings season rumbles on, analysts remain fixated on the bottom line of company reports. But earnings tell only a partial story. There’s a better way to identify businesses that can generate long-term growth.
For decades, there were two things that workers saving for retirement could count on: falling interest rates and low inflation. Change may be afoot. We think target-date funds should take notice.
Investors often ask us which of the two primary bond market risks—interest rate or credit—they should focus on in 2017. Our answer? Both of them—and the interaction between the two.
Investors have had mixed experiences with alternative investments lately, as the market landscape has made it hard for managers’ skills to shine. It’s time to ask some pointed questions to get the right fit.
After lagging the market for years, US financial stocks surged after Donald Trump’s surprising win in the US presidential election. Investors can still profit from investing in banks; in our view, many of the best opportunities now lie in the micro-cap banks the rally left behind.
US Federal Reserve Chair Janet Yellen offered an upbeat assessment of the US economy, signaling that further rate hikes are in store for 2017. But will the Fed also reduce the size of its balance sheet?
There’s value and opportunity in European high-yield bonds today. But if you’re considering using an exchange-traded fund (ETF) to tap into the market, you may want to think again.
These are uncertain times in markets, and that creates a dilemma for investors who need high levels of income but can’t stomach a high level of risk. We have a solution. Actually, we have two.
Stable stocks are out. Riskier reflation plays are in. But who knows which way fickle market winds will blow tomorrow? That’s why strategies that harness stability and good judgement never go out of style.
Confucius wrote, “The green reed which bends in the wind is stronger than the mighty oak which breaks in a storm.” We believe that, similarly, municipal investors who choose flexible mandates will be well equipped for any type of weather.
Fresh concerns about Greece’s debts have prompted new worries across Europe. But another compromise looks likely—European leaders can ill afford a full-blown Greek crisis amid so much regional political uncertainty.
If President Trump’s promise to increase defense spending comes to fruition, it would sharply reverse the trend of the past five years—and have important implications for the outlook on US growth and inflation.
After last year’s oil-price rebound, many investors wonder whether the recovery is over. Probably not. As global demand increasingly relies on US shale, we think oil prices could touch $80 by the end of the decade.
As passive investing has become increasingly popular, the number of indices that track stocks has exploded. More portfolios are being built to track a wider range of exotic indices. But do investors really know what they’re getting?
Rising rates are typically good for stocks, especially when they’re rising because of a strengthening economy. That should mean better days ahead for many post crisis laggards. But a lot will depend on how inflation behaves.
Success for most alternative strategies depends largely on producing returns from alpha—sources beyond broad market movements. It’s been harder to do that in recent years, but that could change in 2017.
Equity investors are increasingly thinking about how their decisions affect society. The United Nations’ Sustainable Development Goals (SDGs) provide a good road map for identifying investments that can make an impact—and generate profits as well.
Investors tend to think of floating-rate bank loans as an antidote to rising interest rates. It ain’t necessarily so.
