ASSET ALLOCATION VIEWPOINTS

Size: px
Start display at page:

Download "ASSET ALLOCATION VIEWPOINTS"

Transcription

1 T. Rowe Price ASSET ALLOCATION VIEWPOINTS Q2 2017

2 Stocks vs. Bonds We increased our underweight to stocks relative to bonds as equity valuations appear extended against a backdrop of continued modest economic growth and uncertainty surrounding the likelihood of progrowth policies providing a catalyst for further upside. EQUITY RISK PREMIUMS June 2012 to June 2017 Earnings Growth Estimate 2018 Estimate 8 S&P % -0.1% 0.5% 10.3% 11.6% Equities Undervalued 7 MSCI Europe -13.0% -7.2% -6.9% 25.0% 9.1% Equity Risk Premium (%) Equities Overvalued Global US Eurozone Japan Global Median US Median Eurozone Median Japan Median MSCI Japan 18.6% 2.0% 1.2% 13.0% 8.8% MSCI Emerging Markets -11.0% -19.4% 7.0% 20.1% 11.5% U.S. economic activity could benefit from fiscal stimulus, lower taxes and deregulation; however, the timing and scale of each remain uncertain, leaving current lofty valuations vulnerable to policy disappointment or less than expected earnings growth. We expect the broadening of global growth seen since the end of last year to continue over the next several quarters, albeit at still modest levels, as improving global trade provides a boost for more exportoriented developed and emerging economies. European growth has improved and is showing signs of sustainability amidst less political uncertainty and could benefit further from its links to stronger global trade. Sources: Absolute Strategy Research, FactSet, MSCI,and Standard & Poor s. Data Analysis by T. Rowe Price. Note: Medians shown cover the last 5 years. 2

3 Regional Equity Positioning We increased our overweight to Developed ex-u.s. stocks based on further signs of improving economic fundamentals, diminished political risk and upside to corporate earnings, notably within the Eurozone. Valuations also remain modestly more attractive outside of the U.S. PRICE-TO-EARNINGS Next 12-Months, June 2007-June x 17x 15x 13x 11x 9x 17.5x 14.8x 14.5x 12.4x REVISIONS TO 2017 & 2018 EARNINGS PER SHARE (EPS) EXPECTATIONS Indexed to 100 Starting, using local currency June 2016 to June 2017 U.S. Japan Europe Emerging Markets 2017 EPS Revisions 2018 EPS Revisions x U.S. Europe Japan Emerging Markets 5x GLOBAL PORTFOLIO MANAGER S INDEX January 2012 to June Global US 40 Europe Japan Major international developed markets are in earlier stages of the economic cycle than the U.S. and remain supported by aggressive quantitative easing actions and relatively more attractive valuations. Europe is supported by diminished political uncertainty, stronger economic growth and earnings expectations and supportive monetary policies. Japanese valuations are the most attractive amongst developed markets and economic growth is showing signs of stabilization. Emerging markets growth is stabilizing and benefiting from improved global trade, but is exposed to commodities and demand from China. Sources: FactSet, Haver Analytics, [IMF] Haver Analytics, Markit, and MSCI. United States is represented by the S&P 500 Index. Other countries/regions represented by their corresponding MSCI Index. Details on regional policy uncertainty indices can be found at 3

4 U.S. Growth vs. U.S. Value We are overweight to growth stocks relative to value stocks based upon modestly more attractive valuations and our expectations for an environment of continued modest economic growth. U.S. GROWTH VS. U.S. VALUE Ratio of 12-Months Forward Price to Earnings Ratio (PE) December 1978 June x 0.8x Ratio of Russell 1000 Value Forward PE to Russell 1000 Growth Forward PE Growth Undervalued Median Sectors and Weights Russell 1000 Growth Russell 1000 Value Weight Difference Discretionary 18.6% 6.9% 11.8% Staples Energy x Value Undervalued Financials Health Care Industrials x U.S. TREASURY (UST) YIELD CURVE AND GROWTH VS. VALUE RETURNS June 2009 to June % Cumulative Total Return 2% -2% -6% -10% Russell 3000 Value - Russell 3000 Growth Yield Curve (UST 2-Yr vs. 10-Yr Spread) -14% Past performance is not a reliable indicator of future performance. Sources: FactSet, Russell, Bureau of Economic Analysis. 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% Yield Spread, 10Yr UST - 2Yr UST IT Materials Real Estate Telecom Utilities Total The strong post-u.s. election reflation rally amongst lower quality value sectors faded after disappointment with progress on pro-growth policies, allowing growth to strongly outperform value. While increased spending, tax cuts and deregulation should provide support for cyclical sectors, like financials and energy, the scope and prospects for these measures receiving congressional approval remain uncertain. 4

5 International Growth vs. International Value We are modestly overweight to Global ex-u.s. value stocks relative to growth as sectors within growth, such as consumer staples are expensive relative to their historical averages. International value sector valuations remain broadly attractive and may benefit from improving global growth outlook. EAFE GROWTH VS. VALUE Ratio of 12-Month Forward Price to Earnings P/E Ratios June 1997 June Ratio of MSCI EAFE Value Fwd P/E to MSCI EAFE Growth Fwd P/E Median Growth Undervalued Value Undervalued CUMULATIVE GROSS DOMESTIC PRODUCT (GDP) GROWTH 4Q 2008 to 1Q % U.S. European Union 20% 10% 0% Japan -10% Past performance is not a reliable indicator of future performance. Sources: FactSet and MSCI. MSCI index returns shown with gross dividends reinvested. 30.8% 17.48% 5.20% Sectors and Weights MSCI EAFE Growth MSCI EAFE Value Weight Difference Discretionary 15.0% 9.2% 5.8% Staples Energy Financials Health Care Industrials IT Materials Real Estate Telecom Utilities Total In Europe and Japan, value stock valuations are modestly more attractive than growth stocks. Europe and Japan offer greater cyclical upside potential than the U.S., which is notable because value stocks tend to be more cyclical. Major sectors within value including financials and energy continue to face headwinds. 5

6 U.S. Large-Cap vs. U.S. Small-Cap We initiated an overweight to U.S. small-cap stocks relative to large-caps based upon more attractive valuations following recent underperformance. Following a strong post-election rally last year, smallcap stocks have lagged large-caps as expectations for pro-growth policies in the U.S. have waned. U.S. SMALL-CAP STOCKS VS U.S. LARGE-CAP STOCKS Ratio of 12-Month Forward Price to Earnings (P/E) Ratio December 1978 June Large-Caps Undervalued 1.1 SMALL-CAP STOCKS ABSOLUTE VALUATIONS 12-Month Forward P/E Ratio December 2008 June x Russell 2000 Median (Since 2008) 18.6x 0.9 Small-Caps Undervalued 16.6x 0.7 Ratio: Russell 2000 vs. Russell 1000 Median CORPORATE INCOME TAX RATE Selected Organization for Economic Co-Operation and Development (OECD) Countries, as of April % 30% Trump Campaign Proposal Ryan Proposal 20% 20% 15% Tax Rate (%) 10% 0% Past performance is not a reliable indicator of future performance. Sources: FactSet, Russell, and Standard & Poor s. 35% 14x 10x The potential for increased U.S. fiscal spending and lower corporate taxes could provide catalysts for small-caps to outperform given their higher sensitivity to the domestic economy and higher marginal tax rates. Small-cap stock valuations remain somewhat elevated relative to their history, but have fallen to more reasonable levels relative to large-caps. Measurements such as free cash flow yields are even more compelling relative to large-caps. Opportunities to add value through security selection are currently much more plentiful within the small cap universe than among large caps. 6

7 International Large-Cap vs. International Small-Cap We are modestly overweight small-cap stocks outside the U.S. as they provide select opportunities within domestic economies that are in earlier stages of recovery than the U.S. DOMESTIC VS. FOREIGN REVENUE EXPOSURE 100% UNEMPLOYMENT RATES January 2007 to June % U.S. European Union France Spain Italy 75% 30% 20% 47% 29% 44% 24% 39% 36% 25% 20% 50% 25% 70% 80% 53% 71% 56% 76% 61% 64% 15% 10% 0% 0 5% 0% Economic growth in Europe is improving, borrowing costs are low, credit is expanding and employment is rising which should be supportive for domestically-oriented, smaller companies. Monetary policy also remains a substantial force to support growth in Europe and Japan in contrast to the U.S. where the Fed has been tightening policy. Past performance is not a reliable indicator of future performance. Sources: FactSet, MSCI, and Russell. MSCI index returns shown with gross dividends reinvested. *Revenue from other Emerging Markets 7

8 Emerging vs. Developed Markets Equity We are underweight to emerging markets stocks relative to developed market stocks due to the risk of a further decline in energy and commodity prices. EMERGING MARKETS (EM) EQUITIES VS. ENERGY PRICES Cumulative Performance, January 2005 to June % 150% 100% 50% 0% S&P/GSI Energy Price Index MSCI Emerging Markets MSCI EM PRICE TO EARNINGS RATIO (P/E) COMPARISONS January 2005 to June 2017 Market Cap Weighted PE 30 MSCI EM 12 Months Forward P/E Equal Sector Weighted PE -50% 5 While near-term concerns over protectionist trade policies, higher developed markets interest rates and a stronger U.S. dollar have receded, they remain credible threats to capital flows and stability. Emerging markets equities closely followed energy prices for the decade ending in 2015, but have been more resilient than energy markets over the past 18 months. Continued lower energy prices could weigh more heavily on emerging market equities. While emerging markets absolute valuations are lower than developed markets, they are expensive versus their historical averages. Sources: FactSet, MSCI, and GSCI. 8

9 Global Equities vs. Real Assets Equities We are underweight to real assets equities as we remain cautious on the prospects for energy and commodity prices given continued concerns over supply and demand imbalances. BREAKEVEN SPREADS* AND INFLATION January 2011 May 2017 GLOBAL OIL DYNAMICS Production vs. Consumption January 2011-March 2017 Percent 3.0% 2.5% 2.0% 1.5% 10-Year Breakeven Spread* (Inflation Expectations) 1 Year Core CPI Million Barrels Per Day Excess Capacity (R) World Production (L) World Consumption (L) Supply > Demand Prices Decrease Million Barrels per Day Demand > Supply Prices Increase % While the potential for U.S. infrastructure spending has increased post-election, the impact on industrial-related commodities remains uncertain as to the probability, timing and scope of the spending. Despite OPEC s (Organization of Petroleum Exporting Countries) continued efforts to limit production, oil prices have been challenged by additional supply as U.S. producers respond to rising prices with increased production. U.S. shale producers have become a larger contributor to global oil supply and with their increased efficiency can now operate profitably at lower price levels. Demand for industrial metals may stay subdued as China s growth slows, driven by a shift from industrial production to domestic consumption. *Difference between 10-year nominal Treasury yield and 10-year Treasury inflation protected securities (TIPS) yield. Sources: FactSet, Energy Information Agency, and Haver Analytics. 9

10 Global Fixed Income Developed market sovereign yields remain at very low levels, driven by aggressive quantitative easing measures. Emerging Markets (EM) and high yield credit sectors offer more attractive yield and lower duration however, credit spreads are tight relative to history as yield-hungry investors have bid up prices in these sectors. YIELD VS. INTEREST RATE RISK For Fixed Income Sectors Yield 7% 6% 5%.64 4% 3% 2% 1% 0% Bank Loans Global High Yield Significant yield advantages in non-core sectors. EM Corporate U.S..03 Aggregate EM Local EM Dollar U.S. IG Corporate -.02 Global Aggregate Germany 10 Year U.S. Treasury 10 Year Duration (Years) Positive Correlation to S&P 500 Negative Correlation to S&P 500 Significant dispersion between U.S yields and other developed markets Japan 10 Year -.15 GLOBAL HIGH YIELD AND EMERGING MARKETS Spreads, Last 10 Years Basis Points Yields, Last 10 Years Yield 9% 8% 7% 6% 2,000 1,500 1, EM US$-Sovereign Spread Global High Yield Spread Spreads have moved lower as energy price concerns eased, default expectations improved, and yield-seekers bid up prices EM Local Yield Local currency yields spiked on dollar strength and global trade concerns, but have eased considerably in % Sources: JP Morgan, S&P/LSTA, and Bloomberg Barclays. Data Analysis by TRP. Correlation is based on the past 10 years of monthly returns. Indices used: Global High Yield = Bloomberg Barclays Global High Yield; EM Local = JP Morgan GBI-EM Global Diversified; EM Dollar = JP Morgan EMBI Global; EM Corporate = JP Morgan CEMBI Broad Diversified; Bank Loans = S&P/LSTA U.S. Leveraged Loan; U.S. IG Corporate = Bloomberg Barclays U.S. Investment Grade Corporate; U.S. Aggregate = Bloomberg Barclays U.S. Aggregate; Global Aggregate = Bloomberg Barclays Global Aggregate; U.S. Treasury 10 Year, Germany 10 Year, and Japan 10 Year are based on benchmark government bonds 10

11 U.S. High Yield vs. U.S. Investment Grade We reduced our overweight to high yield bonds relative to U.S. investment grade bonds to neutral as valuations are trending above historical averages following strong high yield sector performance despite the recent weakness in energy prices. HIGH YIELD (HY) VS. INVESTMENT GRADE (IG) YIELDS June 2000 to June % Global HY minus Global IG Average (Since June 2000) 18% Yield to Worst (%) 16% 14% 12% 10% 8% 6% 4% 2% 0% % 4.5% CREDIT SPREADS 15 Years Ended June 2017 Index Spread (bps) Barclays U.S. High Yield Index S&P/LTSA U.S. Leveraged Loan Index High Yield Current High Investment Grade Current Option Adjusted Spread (bps) Current Yield to Worst (%) Duration (Years) Average Low Barclays Euro High Yield Index While high yield bonds continue to have a yield advantage to investment grade bonds and shorter duration in a rising rate environment, current yield levels offer less opportunity for further appreciation and are vulnerable to a pullback in commodity prices. While the current credit cycle appears extended with leverage increasing, improving earnings and low default expectations should provide support for credit spreads over the near to medium term. Sources: Factset, Bloomberg Barclays, JP Morgan, and Russell. Data Analysis by T. Rowe Price. Spread and yield data based on J.P. Morgan Global High Yield and Bloomberg Barclays Global Aggregate Bond Indices. Default rates based on J.P. Morgan high yield universe. Debt/equity ratios based on Russell 1000 and Russell

12 Emerging Markets (EM) Debt vs. U.S. Investment Grade We are neutral emerging markets bonds relative to U.S. investment grade bonds as valuations for emerging markets bonds have become less compelling during the risk-on rally that followed the U.S. presidential election. EMERGING MARKETS YIELDS & SPREADS January 2010 to June 2017 Yield to Maturity (%) EM US$ Bond Spread - Global IG Spread EM US$-Bond Yield EM Local Currency Bond Yield Spreads still falling despite oil price weakness Spread (bps) CORPORATE DEBT TO GLOBAL DOMESTIC PRODUCT (GDP) As of Q Emerging Markets Private Non-Financial Credit as % of GDP Developed Markets While emerging market economies benefitted from the rise in commodity prices last year, energy prices have been in a recent downtrend and concerns remain about the impacts of protectionist trade policies, higher developed market interest rates and a stronger U.S. dollar. Emerging market economies are broadly in better fiscal positions than they were during the taper-tantrum sell-off in 2013 and an increase in developed market fiscal spending could be supportive for emerging markets exports. Past performance is not a reliable indicator of future performance. Sources: JP Morgan, [IMF] Haver Analytics, and Bank for International Settlements. Indices used: US$-Bond = JP Morgan EMBI Global Index; Local Currency Bond = JP GBI EM Global Diversified Composite 12

13 Non-Dollar Bonds vs. U.S. Investment Grade We reduced our underweight to non-dollar bonds relative to U.S. investment grade bonds as the U.S. dollar outlook has become less supportive. However, low yields and extended duration profiles outside the U.S. continue to offer an unattractive risk-to-return trade-off. 10 YEAR INFLATION EXPECTATIONS (TIPS Breakeven Rates) 3.0% US Germany Japan 10-YEAR SOVEREIGN YIELDS (%) As of June % 3.0% As of 6/30/17 Duration (years) 2.5% 2.5% US Aggregate % 2.0% 2.0% Global Aggregate ex-usd % 1.74% Yield 1.5% 1.0% 1.0% 1.04% 0.5% 0.0% 0.5% 0.44% -0.5% 0.0% After declining throughout the first half of the year, the U.S. dollar may find support as the Fed advances on its path to tighter policy and begins to wind down its balance sheet later this year. Economic growth is improving in Europe and the ECB is anticipated to take initial steps later this year toward tapering asset purchases, which could put upward pressure on rates. Sources: [IMF] Haver Analytics, Bloomberg Barclays, and JP Morgan. 13

14 Important Information This material represents the views of the T. Rowe Price Asset Allocation Committee only and may not reflect the opinion of all T. Rowe Price portfolio managers. The views contained herein are as of June 30, 2017 and are subject to change. Under no circumstances should the materials, in whole or in part, be copied, redistributed or shown to any person without consent from T. Rowe Price. This material is provided for informational purposes only and is not intended to be investment advice or a recommendation to take any particular investment action. Information and opinions, including forecasts and forward-looking statements, are derived from proprietary and nonproprietary sources deemed to be reliable but are not guaranteed as to accuracy. Past performance is not indicative of future results. Investors cannot invest directly in an index. Index performance does not represent the performance of any specific security. There are inherent risks associated with investing in the stock market, including possible loss of principal, and investors must be willing to accept them. The stocks of larger companies generally have lower risk and potential return than the stocks of smaller companies. Since small companies often have limited product lines, markets, or financial resources, investing in them involves more risk than investments primarily in large, established companies. The value approach carries the risk that a stock judged to be undervalued is actually appropriately priced. International investing involves unique risks, including currency fluctuation. Bond yields and prices will vary with interest rate changes. Investors should note that if interest rates rise significantly from current levels, bond fund total returns will decline and may even turn negative in the short term. High yield, lower-rated bonds generally involve greater risk to principal than investments in higher-rated securities. MSCI makes no express or implied warranties or representations and shall have no liability whatsoever with respect to any MSCI data contained herein. The MSCI data may not be further redistributed or used as a basis for other indices or any securities or financial products. This report is not approved, reviewed or produced by MSCI. Frank Russell Company ( Russell ) is the source and owner of the Russell Index data contained or reflected in these materials and all trademarks and copyrights related thereto. Russell is a registered trademark of Russell. Russell is not responsible for the formatting or configuration of this materials or for any inaccuracy in T. Rowe Price Associates presentation thereof. Bloomberg Index Services Ltd. Copyright 2017, Bloomberg Index Services Ltd. Used with permission. J.P. Morgan. Information has been obtained from sources believed to be reliable but J.P. Morgan does not warrant its completeness or accuracy. The index is used with permission. The Index may not be copied, used, or distributed without J.P. Morgan s prior written approval. Copyright 2017, J.P. Morgan Chase & Co. All rights reserved. Copyright 2017, S&P Global Market Intelligence (and its affiliates, as applicable). Reproduction of [S&P 500 Index, S&P/LSTA US Leveraged Loan Index, S&P 600, S&P Growth, S&P Value, S&P/GSI Industrial Metals Price Index, and S&P GSCI Index] in any form is prohibited except with the prior written permission of S&P Global Market Intelligence ( S&P ). None of S&P, its affiliates or their suppliers guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. In no event shall S&P, its affiliates or any of their suppliers be liable for any damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with any use of S&P information. I.H.S. Markit: Copyright 2017 IHS Markit. All rights reserved. Copyright FactSet Research Systems Inc. All rights reserved. International Monetary Fund/Haver Analytics. T. Rowe Price Investment Services, Inc. T. ROWE PRICE, INVEST WITH CONFIDENCE and the Bighorn Sheep design are collectively and/or apart, trademarks of T. Rowe Price Group, Inc. All rights reserved. 14

15 Performance Statistics Glossary Equity Risk Premium: the additional return that investing in the stock market provides over a risk-free rate, such as the return from government treasury bonds. Price/Earnings(P/E) Ratio: The price-to-earnings ratio shows the "multiple" of earnings at which a stock is selling. The P/E ratio is calculated by dividing a stock's current price by its current earnings per share. A high multiple means that investors are optimistic about future growth and have bid up the stock's price. Price-to-Earnings Ratio (12 Months Forward): P/E is a valuation measure calculated by dividing the price of a stock by the analysts forecast of the next 12 months expected earnings. The ratio is a measure of how much investors are willing to pay for the company s future earnings. The higher the P/E, the more investors are paying for a company s earnings growth in the next 12 months. Yield To Maturity (YTM): Yield to maturity is the total return anticipated on a bond if the bond is held until the end of its lifetime. Yield to maturity is considered a long-term bond yield, but is expressed as an annual rate. Yield to Worst (YTW): the minimum potential yield that can be received on a bond without the issuer actually defaulting Earnings Per Share (EPS): Earnings per share is the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company's profitability. Gross domestic product (GDP): Gross domestic product is the monetary value of all the finished goods and services produced within a country's borders in a specific time period. Core Consumer Pricing Index (CPI): A method for measuring core inflation. It is the consumer price index (CPI) excluding energy and food prices. There are many other methods for calculating core inflation, but this is the most popular measurement. This method has become the most widely used because food and energy prices can be very volatile, and this wide amount of movement would unfairly bias the measure of inflation. Credit Spread: The difference in yield between two bonds of similar maturity but different credit quality. Yield: The yield is the income return on an investment, such as the interest or dividends received from holding a particular security. The yield is usually expressed as an annual percentage rate based on the investment's cost, current market value or face value. The U.S. Dollar Index (USDX) is a measure of the value of the U.S. dollar relative to the value of a basket of currencies of the majority of the U.S.'s most significant trading partners. This index is similar to other trade-weighted indexes, which also use the exchange rates from the same major currencies. Economic Policy Uncertainty Index measures policy-related economic uncertainty, Three underlying components are used to construct the index. One component quantifies newspaper coverage of policy-related economic uncertainty. A second component reflects the number of federal tax code provisions set to expire in future years. The third component uses disagreement among economic forecasters as a proxy for uncertainty

16 THANK YOU. C190X2GWV

ASSET ALLOCATION VIEWPOINTS AND GLOBAL INVESTMENT ENVIRONMENT

ASSET ALLOCATION VIEWPOINTS AND GLOBAL INVESTMENT ENVIRONMENT T. Rowe Price ASSET ALLOCATION VIEWPOINTS AND GLOBAL INVESTMENT ENVIRONMENT Q3 2017 Q3 2017 Global Environment MAJOR MARKET THEMES Improv ing Global Grow th Strong Earnings Results Optimistic Equity Valuations

More information

Explore the themes and thinking behind our decisions.

Explore 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 information

Explore the themes and thinking behind our decisions.

Explore the themes and thinking behind our decisions. ASSET ALLOCATION COMMITTEE VIEWPOINTS Third 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 information

Explore the themes and thinking behind our decisions.

Explore the themes and thinking behind our decisions. ASSET ALLOCATION COMMITTEE VIEWPOINTS Fourth 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 information

Target Funds. SEMIANNual REPORT

Target 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 information

INTERNATIONAL EQUITIES

INTERNATIONAL EQUITIES 2018 Global Market Outlook Press Briefing INTERNATIONAL EQUITIES Justin Thomson Portfolio Manager, CIO, Equity November 14, 2017 FOR 2018 GLOBAL MARKET OUTLOOK PRESS BRIEFING. PROVIDED TO DESIGNATED MEMBERS

More information

Explore the themes and thinking behind our decisions.

Explore 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 information

Retirement Funds. SEMIANNual REPORT

Retirement 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 information

FOR 2018 GLOBAL MARKET OUTLOOK PRESS BRIEFING. PROVIDED TO DESIGNATED MEMBERS OF THE PRESS ONLY, NOT FOR FURTHER DISTRIBUTION.

FOR 2018 GLOBAL MARKET OUTLOOK PRESS BRIEFING. PROVIDED TO DESIGNATED MEMBERS OF THE PRESS ONLY, NOT FOR FURTHER DISTRIBUTION. 2018 Global Market Outlook Press Briefing U.S. EQUITIES Ann M. Holcomb, CFA Portfolio Manager November 14, 2017 FOR 2018 GLOBAL MARKET OUTLOOK PRESS BRIEFING. PROVIDED TO DESIGNATED MEMBERS OF THE PRESS

More information

FOR 2018 GLOBAL MARKET OUTLOOK PRESS BRIEFING. PROVIDED TO DESIGNATED MEMBERS OF THE PRESS ONLY, NOT FOR FURTHER DISTRIBUTION.

FOR 2018 GLOBAL MARKET OUTLOOK PRESS BRIEFING. PROVIDED TO DESIGNATED MEMBERS OF THE PRESS ONLY, NOT FOR FURTHER DISTRIBUTION. 2018 Global Market Outlook Press Briefing GLOBAL FIXED INCOME Mark Vaselkiv Portfolio Manager, CIO, Fixed Income November 14, 2017 FOR 2018 GLOBAL MARKET OUTLOOK PRESS BRIEFING. PROVIDED TO DESIGNATED

More information

Eric C. Elbell, CFA, CAIA Area Senior Vice President. Kyongdo Min, CPA, CFA Area Vice President. April 11, 2018

Eric C. Elbell, CFA, CAIA Area Senior Vice President. Kyongdo Min, CPA, CFA Area Vice President. April 11, 2018 Eric C. Elbell, CFA, CAIA Area Senior Vice President Kyongdo Min, CPA, CFA Area Vice President April 11, 2018 Agenda We will address three key topics: Headline events that impacted markets during the quarter

More information

Thoughts on U.S. Equities Growth vs. Value. September 2016

Thoughts on U.S. Equities Growth vs. Value. September 2016 Thoughts on U.S. Equities Growth vs. Value September 201 Historical Returns From Growth And Value As of June 30, 201 ANNUALIZED RETURNS FROM RUSSELL GROWTH AND RUSSELL VALUE INDEXES Annualized Returns

More information

Prudential International Investments Advisers, LLC. Global Investment Strategy October 2009

Prudential 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 information

MAY 2018 Capital Markets Update

MAY 2018 Capital Markets Update MAY 2018 Market commentary U.S. ECONOMICS The U.S. added 223,000 jobs to payrolls in May, well above the consensus estimate of 180,000 and the expansion average of around 200,000. Sector job gains were

More information

Quarterly Asset Class Report Global Equity

Quarterly Asset Class Report Global Equity Quarterly Asset Class Report Global Equity canterburyconsulting.com Canterbury Consulting ( CCI ) is an SEC registered Investment Adviser. Information pertaining to CCI's advisory operations, services,

More information

Capital Markets Review First Quarter 2015

Capital Markets Review First Quarter 2015 Capital Markets Review First Quarter 2015 First-quarter 2015 saw a meaningful increase in volatility across asset classes, as numerous global forces continued to evolve. Everything from stocks and bonds

More information

Economic Outlook. DMS Economic Outlook for next 12 months

Economic 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 information

Economic Outlook. DMS Economic Outlook for next 12 months

Economic 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 information

Capital Markets Outlook 100 LOWDER BROOK DRIVE SUITE 1100 WESTWOOD MA FAX

Capital Markets Outlook 100 LOWDER BROOK DRIVE SUITE 1100 WESTWOOD MA FAX M E K E T A I N V E S T M E N T G R O U P 00 LOWDER BROOK DRIVE SUITE 00 WESTWOOD MA 02090 78 47 3500 FAX 78 47 34 Investors are faced with three primary issues in the near-term: ) historically low bond

More information

HSBC Fund Update. HSBC GIF Global Emerging Markets Bond. April Market overview. Portfolio strategy

HSBC Fund Update. HSBC GIF Global Emerging Markets Bond. April Market overview. Portfolio strategy HSBC Fund Update April 2016 HSBC GIF Global Emerging Markets Bond Market overview The rally in Emerging Market (EM) assets continued in March given the improvement in global risk sentiment on the back

More information

Market volatility to continue

Market 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 information

ASSET ALLOCATION REPORT

ASSET ALLOCATION REPORT 2018 ASSET ALLOCATION REPORT INTRODUCTION We invite you to review Omnia Family Wealth s 2018 report on expected asset class returns for the next 10 years. While we believe these forecasts reflect a reasonable

More information

Global Investment Outlook & Strategy

Global 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 information

Emerging Markets Debt: Outlook for the Asset Class

Emerging Markets Debt: Outlook for the Asset Class Emerging Markets Debt: Outlook for the Asset Class By Steffen Reichold Emerging Markets Economist May 2, 211 Emerging market debt has been one of the best performing asset classes in recent years due to

More information

Navigating a maturing bull market

Navigating a maturing bull market Navigating a maturing bull market Asia Pacific Wealth Management March 2018 INVESTMENT PRODUCTS: NOT A BANK DEPOSIT. NOT GOVERNMENT INSURED. NO BANK GUARANTEE. MAY LOSE VALUE Market Review Market Performance

More information

Review of Pension Plans Performance (Period ending December 31 st, 2013)

Review of Pension Plans Performance (Period ending December 31 st, 2013) Review of Pension Plans Performance (Period ending December 31 st, 2013) prepared for Investment Subcommittee (Note all returns and values are expressed in Canadian Dollars- CAD s) 1 Canadian Equity The

More information

Target Funds. ANNual REPORT

Target Funds. ANNual REPORT ANNual REPORT May 31, 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 and bonds

More information

2014 CAPITAL MARKET ASSUMPTIONS. January SEATTLE LOS ANGELES

2014 CAPITAL MARKET ASSUMPTIONS. January SEATTLE LOS ANGELES 2014 CAPITAL MARKET ASSUMPTIONS January 2014 SEATTLE 206.622.3700 LOS ANGELES 310.297.1777 www.wurts.com TABLE OF CONTENTS Summary Page 3 Overview of Methodology Page 7 Inflation Page 9 Fixed Income Page

More information

Asset Strategy Consultants. MARKET ENVIRONMENT First Quarter 2017

Asset Strategy Consultants. MARKET ENVIRONMENT First Quarter 2017 MARKET ENVIRONMENT First Quarter 2017 Market Environment: Economy Economies in the U.S. and Europe continued to gain traction. Expectations for lower taxes, reduced regulation, and other pro-growth reforms

More information

Retirement Funds. ANNual REPORT

Retirement Funds. ANNual REPORT ANNual REPORT May 31, 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 and

More information

Global Investment Outlook Russ Koesterich, CFA Managing Director, Global Allocation

Global Investment Outlook Russ Koesterich, CFA Managing Director, Global Allocation Global Investment Outlook Russ Koesterich, CFA Managing Director, Global Allocation 6 Asset performance YTD Source: Thomson Reuters Datastream, BlackRock Investment Institute. Apr, 6 Note: Total return

More information

UBS HouseView. Bubble thoughts. Digest. US Edition CIO Wealth Management Research. December 2013

UBS HouseView. Bubble thoughts. Digest. US Edition CIO Wealth Management Research. December 2013 UBS HouseView Digest Edition CIO Wealth Management Research December 2013 Bubble thoughts Bubble thoughts Five years ago the Federal Reserve announced its first round of quantitative easing (QE). QE has

More information

Financial Market Outlook: Further Stock Gain on Faster GDP Rebound and Earnings Recovery. Year-end Target Raised

Financial 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 information

BCA 4Q 2018 Review and 2019 Outlook Russ Allen, CIO. Summary Outlook

BCA 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 information

Global Investment Outlook & Strategy

Global 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 information

Views and Insights. Schroders Multi-Asset Investments. Section 1: Monthly Views November Summary Issued in November 2015

Views and Insights. Schroders Multi-Asset Investments. Section 1: Monthly Views November Summary Issued in November 2015 Issued in November 215 For Financial Intermediary, Institutional and Consultant use only. Not for redistribution under any circumstances. Views and Insights Section 1: Monthly Views November 215 Summary

More information

OUTLOOK 2014/2015. BMO Asset Management Inc.

OUTLOOK 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 information

Capital Market Review

Capital 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 information

The Case for Emerging Markets

The Case for Emerging Markets The Case for Emerging Markets Economic recovery, low inflation, weak currencies, and reasonable valuations bode well for emerging markets 213 215 216 Present The Future Weakening Global Trade China Slowing

More information

Investing in a Time of (Financial) Repression. Cyril Moullé-Berteaux, Head of Global Asset Allocation

Investing in a Time of (Financial) Repression. Cyril Moullé-Berteaux, Head of Global Asset Allocation Investing in a Time of (Financial) Repression Cyril Moullé-Berteaux, Head of Global Asset Allocation Overview Positioning for the long-term The growing Yield Bubble Europe outperformance may just be starting

More information

Leith Wheeler Investment Funds Quarterly Review December 31, 2016

Leith Wheeler Investment Funds Quarterly Review December 31, 2016 Leith Wheeler Investment Funds Quarterly Review December 31, 2016 MER 3 Mo. 1 Yr 3 Yrs 5 Yrs 10 Yrs % % % % % % LW Canadian Equity Fund 1.49 8.3 28.9 6.3 10.9 5.4 LW Canadian Dividend Fund 1.49 9.4 29.6

More information

US Economic Outlook Improving

US 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 information

Portfolio Strategist Update from The Dreyfus Corporation

Portfolio 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 information

Market Insight Economy and Asset Classes December Oil Prices Downtrending: The Real Global Economic Stimulus

Market 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 information

Goldman Sachs Asset Allocation Portfolios Investment Outlook

Goldman 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 information

Capital Markets: Observations and Insights Earnings Resurgence Spring 2017

Capital Markets: Observations and Insights Earnings Resurgence Spring 2017 Capital Markets: Observations and Insights Earnings Resurgence Spring 2017 Key Observations After diverging in 2016, fundamentals once again drove performance in 1Q17 There is a resurgence in earnings

More information

Capital Market Outlook Q3 2017

Capital Market Outlook Q3 2017 Economic progress, in capitalist society, means turmoil Josef A. Schumpeter Summary Capital Market Outlook Q 207 We are not sure that the economist and long time Harvard professor envisaged the type of

More information

Financial Market Outlook: Stocks Rebounding from July Correction, Further Gains Likely. Bond Yields Range Bound

Financial 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 information

Aging Bull. Market Overview 3Q Catholic Responsible Investing

Aging Bull. Market Overview 3Q Catholic Responsible Investing Catholic Responsible Investing Market Overview 3Q 2017 Aging Bull GLOBAL ECONOMIC REVIEW Global economic sentiment notably improved in Q3. In the U.S., real GDP growth for Q2 was revised upward to 3.1%

More information

Outlook & Perspective

Outlook & Perspective Outlook & Perspective All data and information as of June 30, 2016 Approved for current clients. May be presented to prospective clients in a one-on-one setting only. Morningstar Investment Services LLC

More information

Asset Strategy Consultants. MARKET ENVIRONMENT Second Quarter 2016

Asset Strategy Consultants. MARKET ENVIRONMENT Second Quarter 2016 MARKET ENVIRONMENT Second Quarter 2016 Market Environment: U.S. Economy The 2nd quarter was reasonably uneventful and markets were relatively placid until June 23rd, when British voters narrowly approved

More information

DECEMBER 2018 Capital Markets Update

DECEMBER 2018 Capital Markets Update DECEMBER 2018 Market commentary U.S. ECONOMICS Nonfarm payrolls jumped by 312,000 in December, well above expectations for a 176,000 increase. The healthcare sector (+50,000) led job creation, while restaurants

More information

Global Macroeconomic Monthly Review

Global Macroeconomic Monthly Review Global Macroeconomic Monthly Review August 14 th, 2018 Arie Tal, Research Economist Capital Markets Division, Economics Department 1 Please see disclaimer on the last page of this report Key Issues Global

More information

INVESTMENT OUTLOOK JUNE 2018 MACRO-ECONOMICS. Developed and Emerging Markets

INVESTMENT OUTLOOK JUNE 2018 MACRO-ECONOMICS. Developed and Emerging Markets INVESTMENT OUTLOOK JUNE 2018 MACRO-ECONOMICS Developed and Emerging Markets Trade tariffs and protectionist themes have dominated global markets throughout the year and risks have further heightened through

More information

Q and Year-end Commentary: Markets Finish More Mixed than Headlines Suggest

Q and Year-end Commentary: Markets Finish More Mixed than Headlines Suggest Q4 2014 and Year-end Commentary: Markets Finish More Mixed than Headlines Suggest Overview The final quarter turned out to be the most interesting of 2014. It was packed with news headlines and market

More information

Monthly Perspectives. From the Global Investment Committee October 2014

Monthly Perspectives. From the Global Investment Committee October 2014 Monthly Perspectives From the Global Investment Committee October 2014 Global Risk Aversion Reached Extreme Levels Morgan Stanley Standardized Global Risk Demand Index As of October 15, 2014 Complacent

More information

MARCH 2018 Capital Markets Update

MARCH 2018 Capital Markets Update MARCH 2018 Market commentary ECONOMIC CLIMATE Hiring slowed from its fast pace last month the U.S. added 103,000 jobs to nonfarm payrolls in March, below the consensus estimate of 185,000. The U-3 unemployment

More information

Navigating the Fixed Income Minefield

Navigating the Fixed Income Minefield Navigating the Fixed Income Minefield Jeffrey Sherman, CFA Portfolio Manager DoubleLine Capital February 20, 2014 When all the experts and forecasts agree -- something else is going to happen. - Bob Farrell

More information

ASSET ALLOCATION FLASH

ASSET ALLOCATION FLASH FOR PROFESSIONAL INVESTORS 25 June 2018 ASSET ALLOCATION FLASH BNPP AM Multi Asset, Quantitative and Solutions (MAQS) MID-YEAR REVERSALS Asset allocation overview: Christophe MOULIN Head of Multi Asset,

More information

OCTOBER 2018 Capital Markets Update

OCTOBER 2018 Capital Markets Update OCTOBER 2018 Market commentary U.S. ECONOMICS U.S. real GDP grew at an annualized quarterly rate of 3.5% (3. YoY) in Q3, beating expectations of 3.4%. The economy was supported by the strongest consumer

More information

ASSET ALLOCATION STRATEGY

ASSET ALLOCATION STRATEGY ASSET ALLOCATION STRATEGY Fourth quarter 2014 outlook Content Investment strategy Economic outlook Asset class outlook Paul English, MBA, CFA Senior Vice President Tara Proper, CFA AVP Capital Markets

More information

the drive you demand ASSET ALLOCATION June 2017 Global Investment Committee

the drive you demand ASSET ALLOCATION June 2017 Global Investment Committee the drive you demand ASSET ALLOCATION June 217 Global Investment Committee GLOBAL TACTICAL ASSET ALLOCATION Rising earnings argue for remaining overweight equities Global economy / Asset allocation Sustained

More information

EXPLORING THE FUTURE OF FIXED INCOME IN DC PLANS

EXPLORING THE FUTURE OF FIXED INCOME IN DC PLANS EXPLORING THE FUTURE OF FIXED INCOME IN DC PLANS Lorie Latham, CFA Senior Defined Contribution Strategist Wyatt Lee, CFA Asset Allocation Portfolio Manager Terry Moore, CFA Fixed Income Portfolio Specialist

More information

Prudential International Investments Advisers, LLC. Global Investment Strategy February 2010

Prudential 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 information

Balancing Act: Weighing optimism and caution

Balancing Act: Weighing optimism and caution NEW THINKING Balancing Act: Weighing optimism and caution Bruce Cooper, CFA Chief Executive Officer & Chief Investment Officer, TD Asset Management Chair, TD Wealth Asset Allocation Committee 2017 Balancing

More information

Seven-year asset class forecast returns

Seven-year asset class forecast returns For professional investors and advisers only. Seven-year asset class forecast returns 2017 Update Seven-year asset class forecast returns 2017 update Introduction Our seven-year returns forecast largely

More information

Quarterly market summary

Quarterly market summary Quarterly market summary 4th Quarter 2016 Economic overview Economies around the world appear to be relatively resilient, with data signalling that in many countries, economic activities are expanding

More information

Prudential International Investments Advisers, LLC. Global Investment Strategy & Outlook For 2009

Prudential 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 information

ASIA EX JAPAN: NEITHER BOOM NOR DOOM

ASIA EX JAPAN: NEITHER BOOM NOR DOOM 2016 Global Market Outlook Press Briefing ASIA EX JAPAN: NEITHER BOOM NOR DOOM Anh Lu Portfolio Manager (Asia ex Japan Equity Strategy) The Good news, the Bad News, Our Outlook The Good News Not a crisis

More information

Income Solutions Beyond Investment Grade Bonds

Income Solutions Beyond Investment Grade Bonds October 2017 Income Solutions Beyond Investment Grade Bonds Multiple Fixed Income Approaches Direction of interest rates Reduce Duration Limit Duration to Near Zero with: Floating rate notes (FRNs) for

More information

June 2013 Equities Rally Drive Global Re-rating

June 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 information

SEPTEMBER 2018 Capital Markets Update

SEPTEMBER 2018 Capital Markets Update SEPTEMBER 2018 Market commentary U.S. ECONOMICS Non-farm payrolls added 134,000 jobs in September, missing the consensus estimate of 185,000. However, net revisions to the two months prior totaled +87,000

More information

Equity Market Review and Outlook

Equity 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 information

Revisiting Core Principles

Revisiting Core Principles FTSE RAFI All World 3000 - QSR Index (USD) As of 09/30/2017 Revisiting Core Principles The FTSE RAFI QSR Index series utilizes fundamental measures of company size (sales, cash flow, dividends, and book

More information

Quarterly market summary

Quarterly market summary Quarterly market summary 4th Quarter 2017 Economic overview Further evidence of synchronised global economic improvement was signalled by higher measures of economic activity and company profits, along

More information

Revisiting Core Principles

Revisiting Core Principles Russell RAFI Global All Co Index (USD) As of 06/30/2017 Revisiting Core Principles The Russell RAFI Index series utilizes fundamental measures of company size (adjusted sales, retained cash flow, and dividends

More information

Economic and Financial Markets Monthly Review & Outlook Detailed Report October 2017

Economic 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 information

Nationwide Funds. A Nationwide Financial White Paper. Executive summary

Nationwide Funds. A Nationwide Financial White Paper. Executive summary Nationwide Funds A Nationwide Financial White Paper Emerging Markets Executive summary Emerging market economies have experienced faster population and economic growth than developed markets; a trend that

More information

Global Equity LOOKING FOR A GROWTH CATALYST IN THE SECOND HALF

Global Equity LOOKING FOR A GROWTH CATALYST IN THE SECOND HALF PRICE POINT June 2017 Timely intelligence and analysis for our clients. Global Equity LOOKING FOR A GROWTH CATALYST IN THE SECOND HALF KEY POINTS The reflation trade that boosted cyclical stocks in the

More information

Market Watch. July Review Global economic outlook. Australia

Market Watch. July Review Global economic outlook. Australia Market Watch Latest monthly commentary from the Investment Markets Research team at BT. Global economic outlook Australia Available data for the June quarter is consistent with a moderation in GDP growth

More information

Actively Emerging: Opportunities in Debt

Actively Emerging: Opportunities in Debt Aon Hewitt Retirement and Investment Actively Emerging: Opportunities in Debt Risk. Reinsurance. Human Resources. Executive summary Emerging Market Debt (EMD) offers higher yields relative to developed

More information

Short exposure to US equities

Short exposure to US equities Portfolio performance The All Asset Fund aims to serve as a differentiated asset allocation strategy. It focuses on third pillar assets in seeking three key outcomes: 1) long-term real return consistent

More information

Tactical exposure to emerging markets Underweight to healthcare/pharmaceuticals Underweight to utilities

Tactical exposure to emerging markets Underweight to healthcare/pharmaceuticals Underweight to utilities Portfolio performance The Investment Grade Credit strategy underperformed its index for the quarter as bottom-up sector/security selection detracted from returns, while positive contributions from interest

More information

Tracking the Growth Catalysts in Emerging Markets

Tracking the Growth Catalysts in Emerging Markets Tracking the Growth Catalysts in Emerging Markets September 14, 2016 by Nick Niziolek of Calamos Investments The following is an excerpt of remarks made on August 30, 2016. The majority of the improved

More information

FIXED INCOME STRATEGIES FOR LATE 2017 NAVIGATING UNCHARTERED TERRITORY, RISING RATES, AND YOUR FIXED INCOME PORTFOLIO

FIXED INCOME STRATEGIES FOR LATE 2017 NAVIGATING UNCHARTERED TERRITORY, RISING RATES, AND YOUR FIXED INCOME PORTFOLIO FIXED INCOME STRATEGIES FOR LATE 2017 NAVIGATING UNCHARTERED TERRITORY, RISING RATES, AND YOUR FIXED INCOME PORTFOLIO 1 The information contained herein reflects the views of Galliard Capital Management,

More information

Summit Strategies Group 8182 Maryland Avenue, 6th Floor St. Louis, Missouri

Summit 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 Quarterly Review Global Equity Market Update GLOBAL EQUITY MARKETS CALENDAR YEAR RETURNS 2002 2003 2004 2005

More information

Investment Outlook. [presentation_date] Our investment teams discuss current market opportunities and risks.

Investment Outlook. [presentation_date] Our investment teams discuss current market opportunities and risks. Investment Outlook Our investment teams discuss current market opportunities and risks. [presentation_date] ACI-1309929 Non-FDIC Insured May Lose Value No Bank Guarantee This material has been prepared

More information

The ECB takes tiny steps towards policy normalization

The ECB takes tiny steps towards policy normalization Europe Insights Monthly update on European Markets June 27 The ECB takes tiny steps towards policy normalization Summary In the Spotlight. This month, we focus on the European Central Bank s (ECB) June

More information

Investment Opportunities in Global Fixed Income Markets

Investment Opportunities in Global Fixed Income Markets Investment Opportunities in Global Fixed Income Markets GSAM Insurance Fixed Income May 217 GSAM Insurance Asset Management Key Themes for 217 Economic Backdrop End of the Distortion Monetary to Fiscal

More information

B-GUIDE: Market Outlook

B-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 information

Portfolio Navigator funds Quarterly performance and commentary

Portfolio Navigator funds Quarterly performance and commentary Navigator funds Quarterly performance and commentary June 30, 2018 291426 AA VUL (7/18) The Navigator funds Performance Quarter ending 6/30/18 3 month YTD 1 year 3 year 5 year Since Inception* (Class 2)

More information

Pioneer Compass A Quarterly Update on the Direction of the Markets

Pioneer Compass A Quarterly Update on the Direction of the Markets Pioneer Compass A Quarterly Update on the Direction of the Markets Q1 2016 / As of April 2016 The views expressed in this presentation are those of Pioneer, and are subject to change at any time. These

More information

Capital Market Outlook Q4 2017

Capital Market Outlook Q4 2017 It amazes me how people are often more willing to act based on little or no data than to use data that is a challenge to assemble. - Robert Shiller Summary Capital Market Outlook Q4 207 The Yale Nobel

More information

Fourth Quarter Market Outlook. Jason Bulinski, CFA Donald A. Powell, CFA Joseph Styrna, CFA

Fourth Quarter Market Outlook. Jason Bulinski, CFA Donald A. Powell, CFA Joseph Styrna, CFA Fourth Quarter 2018 Market Outlook Jason Bulinski, CFA Donald A. Powell, CFA Joseph Styrna, CFA Economic Outlook Growth: Strong 2018, But Expecting Slowdown in 2019 Growth & Jobs 2018 2017 2016 2015 2014

More information

Investment Update UK Institutional Funds April 2018

Investment 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 information

Learning objectives. Investors should leave the presentation with an ability to discuss

Learning objectives. Investors should leave the presentation with an ability to discuss Learning objectives Investors should leave the presentation with an ability to discuss the fundamentals and valuations of emerging markets economies in 2018 the key risks of emerging market debt in 2018

More information

Quarterly Investment Review

Quarterly Investment Review Wright State University Investment Fund Quarterly Investment Review Fourth Quarter 2015 Presented by: JP Cavaliere, 610-676-2614, jpcavaliere@seic.com January 22, 2016 1 2015 SEI Agenda Executive Summary

More information

Global Equites declined from Concern over Trade War

Global Equites declined from Concern over Trade War Quarterly Market Outlook: Quarter 2 2018 on 3 April 2018 Global Equites declined from Concern over Trade War Investment Outlook for 2 nd Quarter 2018 Equity Thailand U.S. Europe Japan Asia Bond Thailand

More information

A Case for Dividend Growth Strategies

A Case for Dividend Growth Strategies RESEARCH Strategy CONTRIBUTORS Tianyin Cheng Director Strategy & ESG Indices tianyin.cheng@spglobal.com Vinit Srivastava Managing Director Strategy & ESG Indices vinit.srivastava@spglobal.com An allocation

More information

Financial Market Outlook: Stock Rally Continues with Faster & Stronger GDP Rebound, Earnings Recovery & Liquidity

Financial 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 information