Trump. Brexit. There were plenty of big stories last year. But the one that may matter most for your portfolio in 2017—and how you manage risk—is how markets responded to these surprises.
Plan sponsors are focusing a lot on fees these days. Fees do play a part in sponsors’ fiduciary duties, but just one part. And fiduciary duty is tied to ensuring that fees are reasonable––not simply the lowest.
Investors excited by the boost the US election gave to US stocks should recall that starting conditions matter. This is not 1981, the beginning of the Reagan era.
The US credit cycle is entering its ninth year. That doesn’t mean it will end tomorrow. But it will end—and possibly sooner than markets think. Fortunately, there are ways to de-risk and maintain exposure to high-income assets.
Donald Trump’s policies appear almost certain to contribute to volatility in Asian markets during 2017. For active fixed-income investors who understand the dynamics of bonds and currencies in the region, this creates opportunities.
Details of Donald Trump’s economic agenda remain an enigma. Yet there are already enough clues to help investors target companies that should do well in an era of unpredictable policies from the incoming president.
Fearing rising rates, some municipal investors have sought protection in passive laddered portfolios. The strategy’s seeming simplicity packs a lot of allure—but also hidden risks.
Higher interest rates, a stronger dollar and Donald Trump: three reasons to avoid emerging-market (EM) debt? Not necessarily. Rising rates seem to be signaling faster growth, and that’s good news for many EM bonds and currencies.
With Donald Trump about to be sworn in as US president, markets in Asia are nervous about some of his policies, especially on trade. Investors who are alert to these policies’ likely limitations could find attractive opportunities.
Rising volatility and yields. Toppy valuations. Global policy uncertainty. To handle these bumps in the road, investors need to build a better return path focused on strong up/down capture. Further, we see seven key themes affecting that path ahead.
Among the highlights in our global cyclical outlook: We expect economic growth to remain moderate this year, but slightly better than 2016, and fiscal stimulus should move into the spotlight.
Instead of sitting on the sidelines in 2017, take a look at Europe’s corporate bond markets. They could prove a beacon of stability in an uncertain world.
Could Indonesia be the next China in the world of e-commerce? In conversations with consumers across the country, we discovered an online revolution in the making that has huge growth potential for investors.
The nascent recovery in emerging markets has been thrown into question by Trump’s election. While the concerns warrant attention, we still see compelling reasons to invest in developing economies.
The ECB’s decision in early December to reduce the monthly pace of its asset purchase program came as a surprise. But investors should draw considerable comfort from its commitment to maintain a “sustained presence” in euro-area markets.
Capital spending, which slowed sharply this year, may be poised for a rebound in 2017. That could be good news for certain cyclical sectors—provided governments make good on their plans to boost fiscal stimulus.
It’s been a wild month for US banking stocks, which have rallied sharply since Donald Trump’s victory. So how can investors position themselves in the sector amid a potentially dramatic change in the business and regulatory environment?
Still casting about for a New Year’s resolution? If you’re an income-conscious investor, try this: expect that something unexpected will happen next year and act now to cushion your portfolio.
Risk appetite has returned to European equity markets. Is there a way to capture the rally of value stocks while mitigating risks across an unsettled region? Focusing on cash flows can make the difference.
Though stable stocks are expensive and look vulnerable to rising interest rates, we still see ways to build a winning defensive portfolio. But it’ll take some unconventional thinking.
Some of Donald Trump’s plans for the US economy may provide a big boost for small stocks. We think there are five compelling reasons for investors to take a closer look at this segment of the market.
When the market starts buzzing about rising rates, high-yield bank loans’ popularity grows. Although the bank loan bandwagon may look tempting, we’ve found reasons why high-yield bonds shouldn’t be so easily dismissed.
The cruelest month? Muni investors would probably say November. But the sell-off that began when Donald Trump won the US election already appears to be running out of steam. Investors who sell now may soon regret it.
Emerging-market stocks have suffered from a Trump-induced hangover after surging through the first 10 months of 2016. We think investors should put the new risks into perspective.
Looking for a strong defense against rising US interest rates? Look no further.
Ignore your bond portfolio’s greatest enemy at your own peril. Inflation may not have been much of a concern for municipal bond investors in recent years, but it could well be in the cards now.
Recent losses have caused serious pain to muni investors’ bottom line. Can they overcome the pain? The answer may be yes, and probably pretty quickly. If history is any guide, municipals seem built for recovery.
Like other traditional bond benchmarks, key European investment grade bond indexes have changed dramatically over the last five years.
A pending US interest-rate hike and worries about inflation may have persuaded investors to start avoiding bonds. We think that’s a mistake, especially when it comes to high yield, a sector that often thrives when rates rise.
Does Donald Trump’s election victory mean that US investors should brace for higher inflation? Financial markets certainly think so. It may be time for investors to take note.
Core equity managers have struggled to deliver this year in a rapidly changing market environment. We think exposure to volatile equity factors—which is often unintended—may be the culprit.
The era of ultralow interest rates may be over. This could burst the safety bubble in equities—and create new opportunities in stocks that have been out of favor for a long time.
One way to win big in emerging markets is to catch the early onset of a country’s wealth surge. The tipping point is often a reform-driven drop in the cost of raising capital.
European value stocks have rallied recently. But identifying cheap stocks with recovery potential is still extremely difficult. It’s time to consider new approaches to discover attractively valued equity opportunities across Europe’s complex market landscape.
For years, many investors assumed that choosing environmental, social and governance (ESG) investing came with a cost—a performance shortfall. Based on our recent survey, that picture has changed.
Investors in emerging markets are typically attracted to the return potential in fast-growing countries. But do all emerging countries fit the bill? South Korea and Taiwan warrant special attention.
Years from now, we may recall 2016 as the year when political risk became a constant presence hovering over the investment landscape. But fear not: there are ways for investors who rely on fickle global credit markets for income to turn the turbulence to their advantage.
Both US presidential candidates have provided some details of their economic plans to US voters. But Congress will need to have its say, too. Here are some of the highlights.
In Shanghai and Singapore, a growing number of joggers take to the streets each day. Asian lifestyles are changing, and smaller companies across the region are the key to investing in the trend.
With environmental, social and governance (ESG) concerns becoming more pervasive among investors, Europe has taken an early lead in ESG adoption. But North America may not be far behind.
Investors are increasingly using passive portfolios to boost exposure to emerging markets and keep volatility under control. We see better ways to reduce the risks while sourcing returns from across the developing world.
Generous dividends and relatively secure cash flows have been the hallmarks of real estate investment trusts (REITs) in recent years, but some investors fear that all REITs are too expensive. We think it’s time to take a closer look.
Still think emerging markets are too risky? Think again. Smarter policies are leading to less vulnerable economies and rising currencies. For investors who need to wring more income from their bond portfolios, it’s time for a fresh look.
How will bond portfolios react if the US election triggers further market mayhem? Fallout from Brexit taught us valuable lessons about extreme market shocks.
After a strong stretch for emerging markets so far in 2016, some investors wonder whether the rally still has legs. Although stock valuations have risen, we think signs point to yes.
With the US elections around the corner, many investors are wondering how the outcome might impact the stock market. History shows that US large-cap stocks have generally performed well in election years—no matter who wins.
Is a more active fiscal policy really the answer to what ails the global economy? And has the great monetary experiment finally reached the end of the road? We’re not so sure.
US stocks with high dividend yields are looking very risky these days. Investors with too much exposure to sectors such as utilities and telecom may also be in for a shock if interest rates eventually begin to rise.
