Economic Outlook & Stock Market Strategy
|
|
- Gwendoline Kelly
- 5 years ago
- Views:
Transcription
1 Economic Outlook & Stock Market Strategy by Rochdale Investment Management May 2011 The investment ideas developed herein are intellectual property of Rochdale Investment Management. Any use of the investment ideas, portfolio allocations or other ideas contained herein requires written authorization from Rochdale Rochdale Investment Management 1
2 2011 Economic Outlook: Solid, Sustained Expansion Stay Focused on Real Factors Influencing Growth Economic strength is resilient and broad based: 3% GDP growth Monetary and fiscal policy remains very supportive Improving labor market, though still relatively weak Solid corporate profits and rising stock market Consumers still deleveraging but keep spending Strong business spending Export growth strengthens on emerging market demand Obama Administration policy turns more business friendly and job focused Uncertainty slowly abating and improving sentiment Low inflation Housing still weak (prices flat by year end), but now smaller percentage of overall GDP Issues we continue to monitor*: Oil Prices/Mideast political unrest (Moderate Risk to Outlook) EM policy tightening, China, India (Low Risk to Outlook) Fallout from Japanese tragedy (Low risk to outlook) European sovereign debt crisis (Low Risk to Outlook) US budget deficits/debt/fiscal drag (Low Risk to Outlook) *Each issue raises varying degrees of real concern, and we remain on high alert and ready to act quickly should any deteriorate to a level that threatens economic growth. These represent the opinions of Rochdale Investment Management and are subject to change without notice.
3 Economic and Financial Indicators May 2011 Global Economic Outlook US Economic Outlook ECRI Leading Index Personal Consumption/ Retail Sales Energy/Oil Costs Business Surveys Trend Monetary Policy Fiscal Policy Labor Market Credit Availability Inflation Corporate Profits Business Spending Disposable Personal Income/Wages Housing/Mortgages Interest Rates/ Fixed Income Equity Market Valuation Company Guidance Volatility Levels Political Environment Indicators Reflect Forecasts of a 3-6 Month Time Horizon Source: Rochdale Investment Management 5/1/11 FOR ILLUSTRATIVE PURPOSES ONLY 3 CA052609
4 Leading Indexes Still Signaling Broad-Based Economic Strength Months Earlier 3 Months Earlier Latest Month % Change in Growth Rate Long Leading Index Leading Employment Index Leading Home Price Index Leading Services Index Leading Manufacturing Index Leading Exports Index Despite signs of moderating growth ahead, economic strength remains broad based and resilient Source: Economic Cycle Research Institute, May 2011 These represent the opinions of Rochdale Investment Management and are subject to change without notice. 4
5 Economic Outlook Criteria Actual 2010 Rochdale Forecast GDP Growth 2.9% 3% 2. Corporate Profits 32% 8% 10% 3. Disposable Personal Income 1.4% 2.5% 4. Personal Consumption Expenditures 1.7% 2.75% 5. Capital Investment 15% 9% 10% 6. Inflation Total 1.6% 2.5% Core 0.7% 1.6% Fed Funds Rate 0% % 0% 0.25% 7. Interest Rates Treasury Note, 5 Yr. 1.60% 2.5% 2.75% Treasury Bond, 10 Yr. 3.0% 3.75% 4.0% 8. Productivity Growth 3.9% 1.75% 2.0% 9. Employment Unemployment Rate 9.4% 8.25% - 8.5% Total New Jobs 1 million million 10. Capacity Utilization 75% 77% 78% 11. Oil $72 (Annual Avg.) $100-$110 (Annual Avg.) *Includes preliminary estimates that are subject to revision upon final data release. These reflect the opinions of Rochdale and are subject to change at any time. Sources: Rochdale Investment Management, May
6 Equity Outlook Remains Positive Keep it Simple & Stay Focused Sustained U.S. and global economic recovery Strong earnings growth Supportive monetary and fiscal policy Reasonable valuations Low inflation Clients should be fully invested at the upper ends of their allowable equity ranges! CA
7 Rochdale Stock Market Multi-Factor Model Equity Outlook: Positive Equity Market Scorecard Indicator Status Outlook Score Economic Outlook Solid, sustained expansion thru Early expansion phase of business cycle is generally very positive for equities. Positive 7 Corporate Profitability Corporate profits are set to reach record levels in 2011/ Rising input/labor costs will eventually squeeze earnings & profit margins, but not significantly until later in the business cycle. Positive 7 Monetary Conditions/Liquidity Monetary conditions remain strongly accommodative and liquidity is rising. Positive 8 Valuation Market remains reasonably/attractively valued relative to historical averages and fixed income. Positive 8 Technical Indicators Momentum remains strong, prices above key averages, and sentiment is not over exuberant. Positive 8 Score 8 Score Equity Allocation 0 to 1 At or below minimum of equity allocation range 2 to 4 Underweight 5 Neutral Weight 6 to 7 Overweight 8 to 10 Fully invested to maximum equity allocation range Source: Rochdale Investment Management, April
8 Equity Market Scorecard Indicator Status Outlook Score Economic Outlook Solid, sustained expansion thru Early expansion phase of business cycle is generally very positive for equities. Positive 7 US Leading Indexes Stock price upturns typically occur concurrently with upturns in the growth rates of our leading indexes. Leading indexes are now signaling a reacceleration in U.S. economic growth is near. Positive 8 Global Leading Indexes A slowdown in global growth is likely to arrive by summer. Positive 7 Uncertainty/Geopolitical Risk Corporate Profitability Concerns of varying degrees over higher oil prices & Mideast turmoil, EM policy tightening, European and US fiscal debt/deficits issues. Need to avoid policy mistakes on interest rates, taxes and deficits. Corporate profits are set to reach record levels in 2011/ Rising input/labor costs will eventually squeeze earnings & profit margins, but not significantly until later in the business cycle. Neutral 5 Positive 7 Earnings Growth Improving demand/economic growth will help offset rising costs and slowing productivity. Positive 8 Margins Revenue growth and continued productivity enhancement measures drive further improvement in profit margins Positive 7 Revenue Growth Revenue growth from top line sales as economy improves should continue to be a strong driver of increasing profit margins and S&P 500 earnings growth. Positive 7 Regulatory/Tax Outlook Sentiment/confidence increase, but uncertainty over taxes and regulation with Health Care, Energy and Financial reform remains high. Neutral 5 Monetary Conditions/Liquidity Monetary conditions remain strongly accommodative and liquidity is rising. Positive 8 Yield Curve Steep yield curve favorable for equities. Outlook is for slowly increasing but still low interest rates supportive of economic growth. Early stages of interest rate increases often coincide with an improving economy & stock market. Positive 9 Interest Rates Real short rates remain significantly in negative territory and a bear market has never started at such a level. Positive 9 Money Growth Continued upturn in growth suggests increasing liquidity available for financial assets. Positive 6 Valuation Market remains reasonably/attractively valued relative to historical averages and fixed income. Positive 8 P/E At 13x forward earnings, market remains reasonably to attractively valued on a historical basis. Positive 8 Bond/Equity Earnings Yield Given the current spread between the earnings yield of the S&P 500 and Baa corporate bonds, stocks continue to appear inexpensive. Positive 8 Technical Indicators Momentum remains strong, prices above key averages, and sentiment is not over exuberant. Positive 8 Investor Sentiment/Money Flow Sentiment not indicating market top. Money flows still remain light into stock funds, but it is reasonable to assume the current reallocation from bonds will flow into equities. Positive 8 Volatility Based on historical performance, VIX is at a level that provides a significant chance of upward stock price movement. Positive 7 Moving Averages/Momentum The Advance/Decline lines on the NYSE Composite and other major averages recently made new highs, which is positive for the intermediate term trend. Positive 8 Market Strength/Breadth S&P 500 remains well above its 40 week moving average. When the index drops by at least 2.5% below this key level then, more often than not, further major declines are in prospect. Positive 8 Score 8 Score Equity Allocation 0 to 1 At or below minimum of equity allocation range 2 to 4 Underweight 5 Neutral Weight 6 to 7 Overweight 8 to 10 Fully invested to maximum equity allocation range Source: Rochdale Investment Management, April
9 Corporate Earnings & Market Valuation Earnings Outlook Remains Strong Month S&P 500 Forward P/E S&P 500 Operating Earnings Estimates Attractively Valued Fairly Valued Overvalued $94.50 $ $120 $100 $80 $60 $40 $20 $Amt Year Earnings S&P 500 $ e 2012e FOR ILLUSTRATIVE PURPOSES ONLY Source: Rochdale, Thomson Financial, Baseline 5/1/11 CA
10 Equity Outlook: 2011 S&P 500 Forecast Average Forward P/E Multiple Fair Value (2011 Earnings: $94.50) Fair Value (2012 Earnings: $103.50) Expected Return* (12 Months) % % % *Based on a S&P 500 index level of 1330 as of 5/17/11 An improving economic growth outlook, rising confidence, low interest rates, and reduced risk may warrant a modest multiple expansion. Sources: Rochdale Investment Management, May
11 Sector/Industry Outlook Weighting Overweight Equal Weight Underweight Industry Group Sector Value Factor Grade Growth Quality Technical Economic Capital Goods Industrials = Energy Energy = + = + + Media Consumer Discretionary = + + = + Automobiles & Components Consumer Discretionary Insurance Financials + = = = + Consumer Durables & Apparel Consumer Discretionary = = = + + Software & Services Information Technology - + = = + Technology Hardware & Equipment Information Technology = + = = + Materials Materials = = Consumer Services Consumer Discretionary = = Retailing Consumer Discretionary - = = + = Transportation Industrials - + = = = Semiconductors & Semiconductor Equipment Information Technology + = - = = Diversified Financials & Int'l Banks Financials = = - - = Commercial & Professional Services Industrials = - = = = Food & Staples Retailing Consumer Staples = = Real Estate Financials - = Food Beverage & Tobacco Consumer Staples = - + = = Household & Personal Products Consumer Staples = - + = - Domestic Banks Financials = = - = - Pharmaceuticals Biotechnology & Life Sciences Health Care = Health Care Equipment & Services Health Care + = = - - Telecommunication Services Telecommunication Services = - = - = Utilities Utilities - - = = - Industry Group weightings are driven by a combination of proprietary model ranking and fundamental analysis. Weightings pertain to Rochdale s target portfolio and do not necessarily reflect the current allocation of any actual portfolio. Rochdale Investment Management, April 2011 FOR ILLUSTRATIVE PURPOSES ONLY Ranking is based on the opinions of Rochdale, based on its proprietary sector research. CA
12 S&P 500 Volatility Zones to 2011 Heightened Risk Environment Continues Market Capitalization Weighted Percent in Category (Excludes Utilities) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 12/31/1995 Excessive High Elevated Moderate 12/31/ /31/ /31/ /31/ /31/ /31/ /31/ /31/ /31/2004 Higher Volatility May Cause Clients to Exceed Risk Budgets 12/31/ /31/ /31/ /5/2008 3/31/2009 2/28/2010 3/31/2011 4/30/2011 Moderate: 0% - 23% Elevated: 23% - 29% High: 29% - 36% Excessive: Over 36% Persistent, heightened volatility requires investors to revisit portfolio allocations and rethink approach to equity investing. An adjustment to the portfolio s equity allocation may be necessary to meet risk tolerance. As of April 30, Rochdale Investment Management uses Barra Inc.'s Aegis System 'Total Risk' data as a measure of volatility. Barra Inc.'s Aegis System is a third party equity risk management software package used to help assess risk/return trade offs. FOR ILLUSTRATIVE PURPOSES ONLY CA
13 Rochdale Credit Market Scorecard Government Credit Scorecard Score Indicator Status Short-Term Long-Term Inflation Expectations Low capacity utilization, high unemployment and slow recovery in demand cap inflation expectations for now. 6 5 Monetary Policy Political Environment Fed to remain accommodative, keeping interest rates extraordinarily low for an extended period of time. Uncertainty over policy effectiveness, historical debt levels, sovereign risk, rising taxes and regulation Real Interest Rate/Tips Spread Will remain low for now due to lack of signs for inflation and lack of demand due to low ROI. 3 2 US Government Debt/GDP Gross debt now over 90% of GDP. No improvement forthcoming due to budget deficit. 2 1 Total Indicator Corporate Credit Scorecard Status Score Short-Term Long-Term Government All fixed income securities are priced relative treasuries 5 3 Corporate Balance Sheets/Default Risk/Cash Levels Corporate Profits/Earnings Growth Credit Spreads/Valuations Reduction of debt issuance. Companies have been actively building up cash reserves and taking advantage of low rates to refinance. Strong. Growth though like to decelerate as US economy slows and companies may be running out of costs to cut. Spreads have rebounded from recent highs due to easing fears of a double dip recession. Further improvement depends on the strength of economic recovery Equity Risk Premium Will likely remain high due to uncertainty & volatility. 3 4 Score Fixed Income Allocation 0 to 1 At or below minimum of fixed income allocation range 2 to 4 Underweight 5 Neutral Weight 6 to 7 Overweight 8 to 10 Fully invested to maximum fixed income allocation range Total Source: Rochdale Investment Management, February
14 Capital Market Assumptions Average Normalized Expectations Asset Class Near Term Trend Intermediate Term Expectations* Historical Longer Term Average Annualized Risk (%) (1) Downside Exposure (%) (2) Large Cap Positive Small/Mid Cap Positive International Positive Dividend and Income Positive Fixed Income (Investment Grade) Neutral High Yield Fixed Income Positive International Trade Finance Low Volatility Alternative Strategy Positive Positive Cash Neutral (1) Expect 1 out of every 4-5 years (2) Expect 1 out of every years *Subject to oil, interest rates and housing staying within forecasted ranges Annualized Return is the average expected annual change of an asset class value estimated over a long-term period. Annualized Risk is defined as an annual standard deviation of return or a degree of uncertainty of annual return estimated over a long-term period. Downside Exposure represents the longest continuous decline in an asset class extending one or more years. January 2011 Past performance is not indicative of future results. There can be no guarantee of future performance. 14
15 Portfolio Strategy Asset Class Short Term Long Term BUY (Neutral Weight) BUY US Stocks Slow & Sub-trend Economic Recovery Reasonable Valuations V-shaped Earnings Recovery Slower Economic Growth Than in Prior Recoveries (Square Root Recovery) Volatility Likely to Remain Elevated BUY (Overweight) BUY Attractive Valuations Attractive Cash Flow Yields HDI Stocks Yields Attractive in Current Low Inflation Environment Higher Current Cash Flow than Common Stocks and Fixed Income Profitable in Slow Growth Environment Growing Dividend Income Mitigates Effects of Inflation & Rising Interest Rates Potential for Moderate Capital Appreciation BUY (Overweight) BUY Long Leading Indexes: Positive Growth (Non-Japan Asia/Latin America) Emerging Markets in Better Fiscal Condition & Better Secular Growth vs. US International Stocks Eurozone & Japan Expected to Lag US & Asia Productive Stimulus Impact Focus on Select Emerging Markets Stronger Demographics vs. US Reasonable Valuations BUY (Under Weight) HOLD Fixed Income Treasuries: Overvalued (Possible Short Sale) Inflation & Interest Rate Risk (Investment Grade) Investment Grade: Interest Rates Reasonable, Stay Short/Intermediate Term Stay Short to Intermediate Return of the risk premium Fixed Income (High Yield & Bonds Loans) Private Trade Financed Fixed Income (Senior Secured Loans) Structured Legal Claims Settlements Alternative Low Volatility Strategies AI: High Volatility, High Leverage BUY (Neutral Weight) Attractive Yields when Compared to Traditional Fixed Income Opportunity For Capital Appreciation Senior Bank Loan Market Opportunities Price Discounts In Place to Compensate for Expected Defaults BUY Attractive Yield Spreads Floating Yields Spreads Offer Inflation Mitigation Hard Asset Collateralized Loans Principal and Interest Cash Flow Generation Short Term Maturities BUY Safety of Principal Known Principal & Interest Payments High Yield-Attractive Returns when Compared to Traditional Fixed Income & Annuities Strong Reinvestable Cash Flow Opportunity to Capture Distressed Pricing BUY (Overweight) Good Quality/Lower Volatility/ Diversifier for Equities Brings Low Correlation Portfolio Benefits Diversification Benefits/ Return Enhancer For Fixed Income AVOID Risky & Illiquid Forced Deleveraging BUY Higher in Capital Structure Than Common and Preferred Capital appreciation potential Some Floating Rate Offers Inflation Risk Mitigation BUY (Intermediate Term) Well Collateralized, Low Default Risk Floating Rate Offers Inflation Risk Mitigation Dislocation in Market Creates Attractive Opportunities Rigorous Underwriting of Pricing & Structure BUY Can Bring Stability and Diversification to Overall Client Portfolios. Greater Cash Flows Allow Reinvestment in Higher Return Generating Asset Classes Self-liquidating Pool Subjects Portfolio to Lower Capital Fluctuations (Interest Rate Risk) BUY Hedged Strategies Generate Favorable Upside vs. Downside Over Equities Low Correlation with Equities Takes Advantage of Volatility Across Markets HOLD Lower Returns Due to Lingering Credit Tightness Liquidity Issues FOR ILLUSTRATIVE PURPOSES ONLY Sources: Rochdale Investment Management, January 2011 These represent the opinions of Rochdale Investment Management and are subject to change without notice. 15
16 Important Disclosures The Standard & Poor s (S&P) 500 Index represents 500 large U.S. Companies. The ECRI s U.S. Long Leading Index (USLLI) is a composite index designed to lead cyclical swings of the U.S. economy. It is a comprehensive summary measure of U.S. economic conditions made up of leading indicators of the U.S. economy including measures of production, employment, income, and sales. U.S. Leading Employment Index (USLEI) is designed to lead cycles in U.S. employment activity. It is a summary measure of the best leading indicators of U.S. employment activity. U.S. Leading Home Price Index (USLHPI) is designed to lead cyclical swings in real median home prices. It is a summary measure of the best leading indicators of U.S. home prices. U.S. Leading Services Index (USLSI) is designed to lead the service sector activity. It is a summary measure of the best leading indicators of U.S. service sector activity. U.S. Leading Manufacturing Index (USLMI) is designed to lead the manufacturing sector activity. It is a summary measure of the best leading indicators of U.S. manufacturing sector activity. U.S. Leading Exports Index (USLEI) is designed to lead cycles in exports. It is a summary measure of the best leading indicators of U.S. export activity. This presentation is for informational purposes only and is not intended to be a solicitation, offering, or recommendation by Rochdale Investment Management or its affiliates or subsidiaries of any product, security, transaction, or service, including securities transactions, investment management or advisory services. The views expressed herein represent the opinions of Rochdale Investment Management and are subject to change without notice at anytime. This information should not in any way be construed to be investment, financial, tax, or legal advice or other professional advice or service, and should not be relied on in making any investment or other decisions. 16
17 For more information, please contact Rochdale Investment Management 570 Lexington Avenue New York, NY
Economic Outlook & Stock Market Strategy
Economic Outlook & Stock Market Strategy August 2011 The investment ideas developed herein are the intellectual property of Rochdale Investment Management. Any use of the investment ideas, portfolio allocations,
More informationPrudential International Investments Advisers, LLC. Global Investment Strategy October 2009
Prudential International Investments Advisers, LLC. Global Investment Strategy October 2009 By John Praveen, Chief Investment Strategist For Market Commentary Interviews Contact: Lisa Villareal, 973-367-2503/lisa.villareal@prudential.com
More informationFinancial Market Outlook: Stock Rally Continues with Faster & Stronger GDP Rebound, Earnings Recovery & Liquidity
For Market Commentary Interviews Contact: Lisa Villareal, 973-367-2503/lisa.villareal@prudential.com Financial Market Outlook & Strategy: Further Stock Gains with Macro Sweet Spot & Earnings Recovery.
More informationFinancial Market Outlook: Further Stock Gain on Faster GDP Rebound and Earnings Recovery. Year-end Target Raised
For Market Commentary Interviews Contact: Lisa Villareal, 973-367-2503/lisa.villareal@prudential.com Financial Market Outlook & Strategy: FurtherStock Gains Likely, Year-end Target Raised. Bond Under Pressure
More informationPrudential International Investments Advisers, LLC. Global Investment Strategy May 2008
Prudential International Investments Advisers, LLC. Global Investment Strategy May 2008 By John Praveen, Chief Investment Strategist For Market Commentary Interviews Contact: Lisa Villareal, 973-367-2503/lisa.villareal@prudential.com
More informationPrudential International Investments Advisers, LLC. Global Investment Strategy & Outlook For 2009
Prudential International Investments Advisers, LLC. Global Investment Strategy & Outlook For 2009 December 17, 2009 By John Praveen, Chief Investment Strategist For Market Commentary Interviews Contact:
More informationFinancial Market Outlook: Stocks Rebounding from July Correction, Further Gains Likely. Bond Yields Range Bound
For Market Commentary Interviews Contact: Lisa Villareal, 973-367-2503/lisa.villareal@prudential.com Financial Market Outlook & Strategy: Stocks Rebounding from July Correction, Further Gains Likely. Bond
More informationMarket volatility to continue
How much more? Renewed speculation that financial institutions may report increased US subprime-related losses has sent equity markets tumbling. How much more bad news can investors expect going forward?
More informationPrudential International Investments Advisers, LLC. Global Investment Strategy June 2009
Prudential International Investments Advisers, LLC. Global Investment Strategy June 2009 By John Praveen, Chief Investment Strategist For Market Commentary Interviews Contact: Lisa Villareal, 973-367-2503/lisa.villareal@prudential.com
More informationFinancial Market Outlook & Strategy: Stocks Bottoming On Track to Recovery. Near-term Risks
For Market Commentary Interviews Contact: Lisa Villareal, 973-367-2503/lisa.villareal@prudential.com Financial Market Outlook & Strategy: Stocks Bottoming On Track to Recovery. Near-term Risks John Praveen
More informationPrudential International Investments Advisers, LLC. Global Investment Strategy March 2010
Prudential International Investments Advisers, LLC. Global Investment Strategy March 2010 By John Praveen, Chief Investment Strategist For Market Commentary Interviews Contact: Lisa Villareal, 973-367-2503/lisa.villareal@prudential.com
More informationPrudential International Investments Advisers, LLC. Global Investment Strategy February 2010
Prudential International Investments Advisers, LLC. Global Investment Strategy February 2010 By John Praveen, Chief Investment Strategist For Market Commentary Interviews Contact: Lisa Villareal, 973-367-2503/lisa.villareal@prudential.com
More informationExplore the themes and thinking behind our decisions.
ASSET ALLOCATION COMMITTEE VIEWPOINTS First Quarter 2017 These views are informed by a subjective assessment of the relative attractiveness of asset classes and subclasses over a 6- to 18-month horizon.
More informationGlobal Investment Outlook & Strategy
PRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook & Strategy February 2017 Global Stock Market Rally likely to Continue with Solid Q4 Earnings & Stronger 2017 Earnings, ECB
More informationOUTLOOK 2014/2015. BMO Asset Management Inc.
OUTLOOK 2014/2015 BMO Asset Management Inc. We would like to take this opportunity to provide our capital markets outlook for the remainder of 2014 and the first half of 2015 and our recommended asset
More informationSummit Strategies Group 8182 Maryland Avenue, 6th Floor St. Louis, Missouri
Summit Strategies Group 8182 Maryland Avenue, 6th Floor St. Louis, Missouri 63105 314.727.7211 Asset Allocation Review City of Jacksonville Police & Fire Pension Fund February 20, 2015 EXECUTIVE SUMMARY
More informationExplore the themes and thinking behind our decisions.
ASSET ALLOCATION COMMITTEE VIEWPOINTS Fourth Quarter 2016 These views are informed by a subjective assessment of the relative attractiveness of asset classes and subclasses over a 6- to 18-month horizon.
More informationIs City National Rochdale s investment outlook still positive? Large Cap Core 6%-9%
SEPTEMBER 24, 218 On the Radar FAQS ON THE MARKETS AND ECONOMY Is City National Rochdale s investment outlook still positive? Based on our outlook for solid economic growth and improving corporate earnings,
More informationInvestment Update UK Institutional Funds April 2018
Investment Update UK Institutional Funds April 2018 This communication is intended for investment professionals only and must not be relied on by anyone else. After some deceleration in global activity
More informationA Major Pivot at Work
GWIM INVESTMENT STRATEGY COMMITTEE Viewpoint Chief Investment Office NOVEMBER 2016 A Major Pivot at Work This month s Investment Strategy Committee meeting focused on the investment implications of the
More informationGlobal Investment Outlook & Strategy
PRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook & Strategy John Praveen, PhD Chief Investment Strategist FOR MORE INFORMATION CONTACT: Mayura Hooper Phone: 973-367-7930 Email:
More informationThe Global Economy: A Cyclical Boom (with Risks)
The Global Economy: A Cyclical Boom (with Risks) Karen Dynan Nonresident Senior Fellow Peterson Institute for International Economics Professor of the Practice Harvard University Department of Economics
More informationBy John Praveen, Chief Investment Strategist of Prudential International Investments Advisers, LLC.*
By John Praveen, Chief Investment Strategist of Prudential International Investments Advisers, LLC.* For Market Commentary Interviews Contact: Lisa Villareal, 973-367-2503/lisa.villareal@prudential.com
More informationInvestment strategy update Fundamentals remain solid despite strong volatility
For intermediaries only. Not for further distribution. 07 February 2018 Investment strategy update Fundamentals remain solid despite strong volatility Key takeaways Global market volatility picked up strongly
More informationOutlook for Economic Activity and Prices (April 2017) Summary
April 27, 2017 Bank of Japan The Bank's View 1 Outlook for Economic Activity and Prices (April 2017) Summary Japan's economy is likely to continue expanding and maintain growth at a pace above its potential,
More informationEconomic Outlook. DMS Economic Outlook for next 12 months
Economic Outlook DMS Economic Outlook for next 12 months GDP growth will be modest at approximately 2.5%, but the economy will experience periods of unstable growth. Consumer confidence will improve as
More informationOctober 12, Dow 23,000 Target Achieved What Next? By Scott P. Noyes, CFA CFP
October 12, 2017 Dow 23,000 Target Achieved What Next? By Scott P. Noyes, CFA CFP It is time to celebrate as the Dow approaches a multi-year target of 23,000. On October 5 th, the Dow reached 22,775, effectively
More informationOutlook for Economic Activity and Prices (January 2019)
January 23, 2019 Bank of Japan Outlook for Economic Activity and Prices (January 2019) The Bank's View 1 Summary Japan's economy is likely to continue on an expanding trend throughout the projection period
More informationEconomic Outlook. DMS Economic Outlook for next 12 months
Economic Outlook DMS Economic Outlook for next 12 months GDP growth has rebounded from a dismal first quarter and GDP is growing modestly at 2.6%. Personal income growth has improved in recent months and
More informationInvestment Update Retail Pension November 2018
Investment Update Retail Pension November 2018 This communication is intended for investment professionals only and must not be relied on by anyone else. Investment Indices - Annual growth up to 01/11/2018
More informationGlobal Investment Outlook 2014 Year Ahead Outlook
PRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook 2014 Year Ahead Outlook January 2014 2014 Year Ahead - Global Investment Outlook Financial Market Outlook: After Strong Gains
More informationEconomic & Capital Market Outlook Third Quarter, 2018
Economic & Capital Market Outlook Third Quarter, 2018 Economic Outlook The domestic economy is functioning as well as any period since 2007, however we expect economic growth to slow next year. Measured
More informationOutlook for Economic Activity and Prices (October 2017)
Outlook for Economic Activity and Prices (October 2017) October 31, 2017 Bank of Japan The Bank's View 1 Summary Japan's economy is likely to continue expanding on the back of highly accommodative financial
More informationOutlook for Economic Activity and Prices (April 2014)
April 30, 2014 Bank of Japan Outlook for Economic Activity and Prices (April 2014) The Bank's View 1 Summary From fiscal 2014 through fiscal 2016, Japan's economy is likely to continue growing at a pace
More informationOutlook for Economic Activity and Prices (January 2018)
Outlook for Economic Activity and Prices (January 2018) January 23, 2018 Bank of Japan The Bank's View 1 Summary Japan's economy is likely to continue expanding on the back of highly accommodative financial
More informationPortfolio Strategist Update from The Dreyfus Corporation
Portfolio Strategist Update from The Dreyfus Corporation Active Opportunity ETF Portfolios As of Dec. 31, 2017 Ameriprise Financial Services, Inc. (Ameriprise Financial) is the investment manager for Active
More informationGLOBAL INVESTMENT OUTLOOK & STRATEGY
May 2018 John Praveen, PhD Managing Director FOLLOW Us ON TWITTER: @prustrategist FOR MORE INFORMATION CONTACT: Kristin Meza Phone: 973-367-4104 Email: kristin.meza@ prudential.com PGIM is the Global Investment
More informationOutlook for Economic Activity and Prices (April 2010)
April 30, 2010 Bank of Japan Outlook for Economic Activity and Prices (April 2010) The Bank's View 1 The global economy has emerged from the sharp deterioration triggered by the financial crisis and has
More informationBy John Praveen, Chief Investment Strategist of Prudential International Investments Advisers, LLC.*
By John Praveen, Chief Investment Strategist of Prudential International Investments Advisers, LLC.* For Market Commentary Interviews Contact: Lisa Villareal, 973-367-2503/lisa.villareal@prudential.com
More informationOutlook for Economic Activity and Prices (July 2018)
Outlook for Economic Activity and Prices (July 2018) July 31, 2018 Bank of Japan The Bank's View 1 Summary Japan's economy is likely to continue growing at a pace above its potential in fiscal 2018, mainly
More informationTarget Funds. SEMIANNual REPORT
SEMIANNual REPORT November 30, 2017 T. Rowe Price Target Funds The funds invest in a diversified portfolio of T. Rowe Price mutual funds, offering a professionally managed, age-appropriate mix of stocks
More informationGlobal Investment Strategy
By John Praveen, Chief Investment Strategist of Prudential International Investments Advisers, LLC.* For Market Commentary Interviews Contact: Lisa Villareal, 973-367-2503/lisa.villareal@prudential.com
More informationPRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook
PRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook September 2013 Financial Market Outlook: Stocks likely to Remain in Modest Uptrend with Low Rates & Plentiful Liquidity, Improving
More informationReal estate: The impact of rising interest rates
White Summer paper 2016 Real estate: The impact of rising interest rates Martha Peyton, Ph.D. Managing Director Edward F. Pierzak, Ph.D. Managing Director TIAA Global Real Assets Research Overview Rising
More informationTable 1: Economic Growth Measures
US Equities continued to advance in the second quarter, with the S&P 500 returning 5.2% for the quarter and 7.1% for the first half. Energy was by far the best performing sector in the quarter, returning
More informationRetirement Funds. SEMIANNual REPORT
SEMIANNual REPORT November 30, 2017 T. Rowe Price Retirement Funds The funds invest in a diversified portfolio of T. Rowe Price mutual funds, offering a professionally managed, age-appropriate mix of stocks
More informationPRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook
PRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook February 2015 Stocks to Fully Rebound from Late 2014/Early 2015 Sell-off with ECB Launching Aggressive QE, Rate Cuts by Several
More informationGROWTH FIXED INCOME APRIL 2013
GROWTH FIXED INCOME APRIL 2013 BACKGROUND Most investors view fixed income investments as providing a liability-matching or defensive aspect to their total portfolio. The types of investments considered
More information3 Jan Executive Summary
Executive Summary Key Macroeconomic Takeaways Continued recovery is expected for 2011, but the pace of growth is likely to be slower than recent trends. Asset Class Allocation Increased risk appetite is
More informationAsset Allocation Model March Update
The month of February was marked by a sell-off in global equity markets and a sudden increase in market volatility with the CBOE Volatility Index reaching its highest level since August 2015. The rout
More informationMarket Commentary November 2015
Market Commentary November 2015 The Federal Reserve will, most likely, raise interest rates in December The last time rates were set up was in 2006. It could lead to higher volatility in the short term
More informationUS Economic Outlook Improving
Government Bonds Have Never Looked Less Attractive OUTLOOK Executive Summary Kenneth J. Taubes Chief Investment Officer, US Economic Outlook US GDP growth may lead growth among developed nations, at approximately
More informationOutlook for Economic Activity and Prices (April 2018)
Outlook for Economic Activity and Prices (April 2018) The Bank's View 1 Summary April 27, 2018 Bank of Japan Japan's economy is likely to continue growing at a pace above its potential in fiscal 2018,
More informationActive M Emerging Markets Equity Fund (NMMEX) (Formerly known as Multi-Manager Emerging Markets Equity Fund)
NORTHERN FUNDS Active M Emerging Markets Equity Fund (NMMEX) (Formerly known as Multi-Manager Emerging Markets Equity Fund) 2Q 2018 Performance Review June 30, 2018 Please carefully read the prospectus
More informationNovember PRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook & Strategy
PRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook & Strategy November 2015 John Praveen, PhD Chief Investment Strategist FOR MORE INFORMATION CONTACT: Theresa Miller Phone:
More informationVanguard economic and market outlook for 2018: Rising risks to the status quo. Vanguard Research December 2017
Vanguard economic and market outlook for 2018: Rising risks to the status quo Vanguard Research December 2017 Market consensus has finally embraced the low secular trends Note: The Group of Seven (G7)
More informationMarket Insight Economy and Asset Classes December Oil Prices Downtrending: The Real Global Economic Stimulus
Market Insight Economy and Asset Classes December 2014 Oil Prices Downtrending: The Real Global Economic Stimulus 2 Equities Markets Feature In Citi analysts view, the expansion phase the US are enjoying
More informationKey takeaways. What it may mean for investors FIRST A NALYSIS NEWS OR EVENTS T HAT MAY AFFECT Y OUR INVESTMENTS. Global Investment Strategy Team
FIRST A NALYSIS NEWS OR EVENTS T HAT MAY AFFECT Y OUR INVESTMENTS Global Investment Strategy Team February 5, 2018 Market Sell-off What Investors Need to Know Now Key takeaways» A swift climb in the 10-year
More informationPortfolio Select Series. Portfolio Review Second Quarter 2012
Portfolio Select Series Portfolio Review Second Quarter 2012 Q2 Q2 3 Select Income Advantage Managed Portfolio 6 Select 80i20e Managed Portfolio 10 Select 70i30e Managed Portfolio 14 Select 60i40e Managed
More informationOutlook for Economic Activity and Prices
Not to be released until : p.m. Japan Standard Time on Saturday, October 31, 15. October 31, 15 Bank of Japan Outlook for Economic Activity and Prices October 15 (English translation prepared by the Bank's
More informationEconomic and Financial Markets Monthly Review & Outlook Detailed Report. June 2014
Economic and Financial Markets Monthly Review & Outlook Detailed Report June 1 Overview of the Economy In the U.S., the Federal Reserve s Beige Book report on the economy through late May indicated that
More informationASSET ALLOCATION VIEWPOINTS
T. Rowe Price ASSET ALLOCATION VIEWPOINTS Q2 2017 Stocks vs. Bonds We increased our underweight to stocks relative to bonds as equity valuations appear extended against a backdrop of continued modest economic
More informationTempleton Asian Smaller Companies Fund A (acc) USD
Templeton Asian Smaller Companies Fund A (acc) USD Franklin Templeton Investment Funds Fund Manager Report Value Equity Product Details 1 Fund Assets $1484994629.55 Fund Inception Date 14/10/2008 Number
More informationQ Global Equity. (888)
Q4 2017 Global Equity www.westendadvisors.com info@westendadvisors.com (888) 500-9025 1 WestEnd Advisors Overview The cornerstone of our investment process is that the macroeconomic environment is a key
More informationASSESSING THE RISK OF A DOUBLE-DIP RECESSION: KEY INDICATORS TO MONITOR
Weekly Economic Perspective ASSESSING THE RISK OF A DOUBLE-DIP RECESSION: KEY INDICATORS TO MONITOR August 2, 2010 Robert F. DeLucia, CFA Consulting Economist Summary and Major Conclusions: Heightened
More informationCapital Market Review
Capital Market Review September 3, 215 Percent Percent MARKET/ECONOMIC OVERVIEW Risk Reprices Rapidly 2,2 1,9 1,6 1,3 S&P 5 April 29, 211 to Oct 3, 211 157 Days -19.4% May 21, 215 to Sep 3, 215 132 Days
More informationB-GUIDE: Market Outlook
Quarterly Market Outlook: Quarter 1 2018 on 5 th January 2018 Investment Outlook for 1 st Quarter 2018 Accelerating Global Economy Supports the Rising Earnings Equity Thailand US Europe Japan Asia Bond
More informationInvesting in Today s World with Thoughts of Tomorrow. Presented by: Jeff Matthias, CFA
Investing in Today s World with Thoughts of Tomorrow Presented by: Jeff Matthias, CFA Wisconsin Coalition of Annuitants May 11, 2018 Today s Key Takeaways Investor Inputs Market Recap Investment Outlook
More informationBCA 4Q 2018 Review and 2019 Outlook Russ Allen, CIO. Summary Outlook
BCA 4Q 2018 Review and 2019 Outlook Russ Allen, CIO Summary Outlook January 15, 2019 Markets in 2019 will be choppy with volatility more like this past year than the placid trading of 2017. The Fed is
More informationHigh Yield. LarrainVial Seminario Mercados Globales - Ideas Hans Stoter Head of Credit Investments ING Investment Management
High Yield Hans Stoter Head of Credit Investments ING Investment Management LarrainVial Seminario Mercados Globales - Ideas 2010 Santiago, Lima May 11 13, 2010 What is High Yield Corporate debt with rating
More informationQ Global Equity. (888)
Q4 2018 Global Equity www.westendadvisors.com info@westendadvisors.com (888) 500-9025 1 WestEnd Advisors Overview The cornerstone of our investment process is that the macroeconomic environment is a key
More informationEconomic and Financial Markets Monthly Review & Outlook Detailed Report October 2017
Economic and Financial Markets Monthly Review & Outlook Detailed Report October 17 NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE Overview of the Economy Business and economic confidence indicators
More informationInternational & Global Commentaries
International & Global Commentaries Market Review International Equity Global Select Looking Ahead Market Review In aggregate, global equities posted positive returns in the first quarter, with developed
More information2008 Economic and Market Outlook
Economic and Market Outlook Presented by: Gareth Watson Warren Jestin Vincent Delisle December 7 Economic Outlook Warren Jestin The Global Economic Landscape is Changing Rapidly Gears Down Emerging Powerhouses
More informationAnnual Returns: S&P 500 vs. ACWI ex-u.s. (Global Equities outside U.S.)
2015 Strategy Review Tactical Growth (Managed ETFs) December 31, 2015 The following report provides in-depth analysis into the successes and challenges of Tactical Growth throughout 2015, important research
More informationQ Global Equity. (888)
Q1 2018 Global Equity www.westendadvisors.com info@westendadvisors.com (888) 500-9025 1 WestEnd Advisors Overview The cornerstone of our investment process is that the macroeconomic environment is a key
More informationSouth African Reserve Bank STATEMENT OF THE MONETARY POLICY COMMITTEE. Issued by Lesetja Kganyago, Governor of the South African Reserve Bank
South African Reserve Bank PRESS STATEMENT 24 January 2017 STATEMENT OF THE MONETARY POLICY COMMITTEE Issued by Lesetja Kganyago, Governor of the South African Reserve Bank Since the previous meeting of
More informationBANK OF FINLAND ARTICLES ON THE ECONOMY
BANK OF FINLAND ARTICLES ON THE ECONOMY Table of Contents Global economy to grow steadily 3 FORECAST FOR THE GLOBAL ECONOMY Global economy to grow steadily TODAY 1:00 PM BANK OF FINLAND BULLETIN 1/2017
More informationEquity Market Review and Outlook
REVIEW AND OUTLOOK Q3 2016 Equity Market Review and Outlook By Richard Skaggs, CFA, VP, Senior Equity Strategist KEY TAKEAWAYS Stocks rallied handily in the third quarter, led by global markets. The Fed
More informationU.S. INVESTMENT OUTLOOK
Econometric Advisors U.S. INVESTMENT OUTLOOK Q3 2018 U.S. INVESTMENT REMAINING IMPACT OF FISCAL BOOST TO KEEP 2019 OUTLOOK STRONG JOB GAINS TO MODERATE AND WAGES TO GAIN AS LABOR MARKET TIGHTENS STRONG
More informationThe Market Navigator N a v i g a t i n g t h r o u g h t h e S e a s o f C h a n g e
April 17, 2018 The Market Navigator N a v i g a t i n g t h r o u g h t h e S e a s o f C h a n g e Systematic tracking of market and macro momentum through highly condensed, objective indicators in the
More informationPutnam Stable Value Fund
Product profile Q1 2016 Putnam Stable Value Fund Inception date February 28, 1991 Total portfolio assets $5.7B Putnam Stable as of March 31, 2016 Value Weighted average maturity 2.66 Effective duration
More informationPortfolio Select Series. Portfolio Review First Quarter 2017
Portfolio Select Series Portfolio Review First Quarter 2017 Q1 Q4 3 Select Income Managed Portfolio 6 Select 80i20e Managed Portfolio 10 Select 70i30e Managed Portfolio 14 Select 60i40e Managed Portfolio
More informationSherpa Investment View 4 th Quarter 2015
Sherpa Investment View 4 th Quarter 2015 James Mantosh, CFA Sherpa Investment Management Jan 2016 Fourth Quarter 2015 Commentary 2015 was a volatile year. Stateside, the dollar strengthened but stocks
More information54 ECB RESULTS OF THE ECB SURVEY OF PROFESSIONAL FORECASTERS FOR THE FOURTH QUARTER OF 2009
Box 7 RESULTS OF THE ECB SURVEY OF PROFESSIONAL FORECASTERS FOR THE FOURTH QUARTER OF 9 This box reports the results of the ECB Survey of Professional Forecasters (SPF) for the fourth quarter of 9. The
More informationMarket Outlook. July 2015
Market Outlook July 2015 Greece Defaults; Contagion Risks Limited Greek government failed to make the EUR 1.6bn IMF debt payment due on 30 June and becomes the first nation to default on IMF since Mugabe's
More informationGlobal Investment Outlook & Strategy
PRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook & Strategy April 2017 Stock Markets likely to Grind Higher as Expectations of Strong Earnings Growth & Improving Global GDP
More informationOutlook for Economic Activity and Prices (October 2014)
October 31, 2014 Bank of Japan Outlook for Economic Activity and Prices (October 2014) The Bank's View 1 Summary From fiscal 2014 through fiscal 2016, Japan's economy is likely to continue growing at a
More informationLUTHER KING CAPITAL MANAGEMENT LKCM SMID CAP EQUITY COMPOSITE First Quarter, 2016 Update
LUTHER KING CAPITAL MANAGEMENT LKCM SMID CAP EQUITY COMPOSITE First Quarter, 2016 Update Performance ** 1 st QTR 2016 3 Years Annualized 5 Years Annualized Since Inception Annualized * LKCM SMID Cap Equity
More informationEconomic Outlook In the Shoes of an FOMC Member
Economic Outlook In the Shoes of an FOMC Member This material must be read in conjunction with the disclosure statement. 9 April 2018 PRESENTED BY: MARKUS SCHOMER Chief Economist PineBridge Investments
More informationGoldman Sachs Asset Allocation Portfolios Investment Outlook
Goldman Sachs Asset Allocation Portfolios Investment Outlook Overview The Goldman Sachs Asset Allocation Portfolios are managed by the Global Portfolio Solutions (GPS) team. 1 GPS has been designing customized
More informationTime to adjust the sails
Time to adjust the sails EXECUTIVE SUMMARY 2018 Mid-Year Capital Market Outlook Brent Joyce CFA Chief Investment Strategist Andrew O Brien CFA Manager, Investment Strategy The World At Large The pessimist
More information2014 Annual Review & Outlook
2014 Annual Review & Outlook As we enter 2014, the current economic expansion is 4.5 years in duration, roughly the average life of U.S. economic expansions. There is every reason to believe it will continue,
More informationJune 2013 Equities Rally Drive Global Re-rating
June 2013 Equities Rally Drive Global Re-rating Since the lows of 2011, global equities have rallied 30% while Earnings per Share remained flat. This has been the biggest mid-cycle re-rating of global
More information2019 Schwab Market Outlook
2019 Schwab Market Outlook Schwab Center for Financial Research Schwab s team of market experts share their perspectives and provide investment guidance EXECUTIVE SUMMARY Be Prepared Last year, our Market
More informationGlobal Investment Outlook
PRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook 2015 Year Ahead - Global Investment Outlook Stocks likely to Post Solid Gains in 2015 Fuelled by Fresh QE Stimulus in Eurozone
More informationCosa ci riserva il 2008?
Cosa ci riserva il 28? Scenari e previsioni per l anno in corso Keith Wade Capo Economista The US economy today A re-assessment of risk De-leveraging Financial sector Real economy Historical precedents
More informationSouth African Reserve Bank STATEMENT OF THE MONETARY POLICY COMMITTEE. Issued by Lesetja Kganyago, Governor of the South African Reserve Bank
South African Reserve Bank PRESS STATEMENT EMBARGO DELIVERY 18 January 2018 STATEMENT OF THE MONETARY POLICY COMMITTEE Issued by Lesetja Kganyago, Governor of the South African Reserve Bank In recent weeks,
More informationGlobal Investment Committee Themes
Global Investment Committee Themes The Global Investment Committee (GIC), which meets monthly to review the economic and political environment and asset allocation models for Morgan Stanley Wealth Management
More informationSeptember PRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook & Strategy
PRUDENTIAL INTERNATIONAL INVESTMENTS ADVISERS, LLC. Global Investment Outlook & Strategy September 2015 Stock Market Volatility likely to Remain Elevated in Near-term on China Concerns & Fed Uncertainty.
More information