Investment Strategy Outlook
|
|
- Bernard Darren Richard
- 6 years ago
- Views:
Transcription
1 Baird Market & Investment Strategy Investment Strategy Outlook October 19, 2017 Please refer to Appendix Important Disclosures. Weight of Evidence Offers Bullish Message Outlook Summary Highlights: Central Bank Patience Could Be Tested Global Economy Providing Upside Surprises Seasonal Patterns Argue For Fourth Quarter Strength Breadth Trends Show Improved Rally Participation Improving seasonal patterns have shifted the overall weight of the evidence from neutral to bullish. This suggests that stocks could follow a path of least resistance higher into Global economic conditions remain strong, and broad market trends are heading in the right direction. Historically stocks rally as year end approaches, although strength over the entire fourth quarter would be a bit surprising (but about on par for what we have witnessed so far in 2017). Optimism is elevated which could argue for some near-term rockiness. Valuations suggest stock prices have already priced in a robust recovery in earnings. We are keeping a close eye on the sole remaining neutral factor: Federal Reserve Policy (or global central banks, more generally). The Fed has telegraphed the beginning of their balance sheet drawdown and the market has priced in one more rate hike yet this year. Central bank surprises are more likely to come from Mario Draghi and the ECB. A faster-than-expected pivot from the current Indicator Review Weight of the Evidence Turns Bullish Central Bank Focus Shifting from Fed to ECB Low Bond Yields Could Be Out of Sync With Global Economy Optimism Excessive, but Shy of Euphoria Sector Leadership from Financials, Industrials, Materials, Health Care do-whatever-it-takes quantitative easing program to a discussion of quantitative tightening could turn overall central bank policy into a headwind for stocks. Evidence of accelerating inflation could put upward pressure on global bond yields, and that could get to the point of being a headwind for stocks as well. While this shift in central bank policy may be timely, it remains very much in experimental mode. We do not have evidence, now, that central banks have become a headwind for stocks. That may come in 2018, but not here yet. For now, central bank policy is neutral, the weight of the evidence has turned bullish, and stocks appear poised to work higher into year end. Bruce Bittles Chief Investment Strategist bbittles@rwbaird.com William Delwiche, CMT, CFA Investment Strategist wdelwiche@rwbaird.com R.17
2 Federal Reserve Policy is still neutral. The Fed has begun to reduce the size of its balance sheet (ever so slightly) and has signaled to the market its expectation that rates will be raised one more time in 2017 (likely in conjunction with the December FOMC meeting). The pace of tightening (still described as policy normalization) has been both gradual and clearly signaled by the Fed. This has helped keep Fed policy as neutral and limited any disruptive impacts. While the Fed has stopped its easing program, the ECB and the Bank of Japan have continued theirs, and central bank balance sheets overall have continued to expand. A more abruptthan-expected shift from easing to tightening by the ECB could turn central bank policy into a headwind for stocks and may be a significant story as we move into Experimental policy on the part of global central banks has helped keep bond yields low. A shift from balance sheet expansion to balance sheet contraction could put upward pressure on yields. To some extent a modest rise in bond yields would reflect confidence in the recovery being seen in the global economy, but at some point (our guess would be around 2.6% on the 10-year T-Note) this could become a headwind for stocks. A relative lack of inflation pressure and muted inflation expectations provides central banks with the chance to proceed at a modest pace. If this dynamic shifts inflation pressures build, central bank tightening schedules may need to be accelerated. Source: Stock Charts Robert W. Baird & Co. Page 2 of 8
3 Economic Fundamentals remain bullish. After slipping relative to expectations over the course of the summer, the global economy is back to providing upside surprises. This has been the case for most of the past 18 months. Economic growth has not only been stronger than expected in aggregate, it remains broadly based. 97% of country-level purchasing manager indexes are above 50 (indicating an expansion in activity) and 90% are higher than they were a year ago. The rebound in growth is helping support a rebound in corporate revenue and earnings. While earnings estimates for 2017 have come down slightly since the beginning of the year, the pace of downward estimate revisions has slowed, particularly over the course of the third quarter. As of now, S&P 500 operating earnings are expected to rise nearly 20% this year, followed by another 13% gain in Robert W. Baird & Co. Page 3 of 8
4 Even with the improving economic growth fueling an improved earnings backdrop, Valuations remain bearish. Stock prices have already risen in anticipation of the rebound in earnings that is being seen and which is expected to continue. Valuations are elevated based on both trailing earnings and one-year forward earnings. The best case scenario, given current valuations, may well be for the price rally to pause for a time while the recovery in earnings continues. Investor Sentiment is bearish. Investor optimism is excessive by most measures. The latest survey of advisory services shows four bulls for every bear, a nearrecord level of optimism. Data from the NAAIM (National Association of Active Investment Managers) over the past month showed that even the bearish investment managers in its sample had elevated exposure to stocks. At one point, the data showed that the most bearishly positioned managers was at 80% equity exposure (the highest such reading on record). That has now started to unwind, but the survey data remains largely devoid of evidence of skepticism or pessimism. Robert W. Baird & Co. Page 4 of 8
5 Another way of measuring optimism comes from the University of Michigan s survey of consumers. As of the end of September, 65% of respondents expected stocks to be higher in one year. This surpasses the peaks seen in 2015 and 2007 and is at a level that has not been conducive to continued stock market strength. Providing some offset to this evidence of widespread optimism has been continued elevated levels of partisanship and policy uncertainty. While these may keep the sentiment data from signaling euphoria (which does indeed seem to be lacking), optimism is nonetheless high enough to make the path forward for stocks somewhat rocky. Some degree of price consolidation could help take some of the air out of the sentiment balloon. Seasonal patterns and trends have turned bullish. Both the one-year cycle and the four-year cycle suggest that the uptrend in stocks could gain strength moving into year end. These trends are favorable on their own, but conditions specific to 2017 may have even greater significance. There are many ways to describe the relative lack of volatility seen this year, but the bottom line is that it tends to allow stocks to extend their gains. Also, history shows that when stocks are up through the first three quarters of the year and are making new highs in September, the fourth quarter tends to be strong. This is not to say that stocks cannot hit a rough patch between now and year end, but rather to suggest that the path of least resistance over the course of the quarter as a whole is likely to be higher. Robert W. Baird & Co. Page 5 of 8
6 Looking ahead, the bullish seasonal tailwind that stocks enjoy heading into 2018 may be relatively short-lived. The weakest periods for stocks in the fouryear cycle tends to be heading into elections. The 2018 mid-term elections are shaping up to be particularly contentious (even perhaps more so than is typically seen in the first term for a new presidency). When viewed in context of potential changes in central bank policy and/or a move higher in bond yields, the low volatility experience of 2017 should be viewed as a gift to be enjoyed, not a new normal to be expected. The good news is that with volatility comes opportunity. Breadth remains bullish. The improved behavior of the broad market over the past month is encouraging, but not without blemishes. After bottoming near 40% in August, the percentage of stocks trading above their 50-day averages has surged to 75%, breaking through a down-trend of lower highs. While this could provide some near-term momentum for stocks, the longer-term trends have struggled to see similar improvement. The percentage of stocks trading above their 200-day averages has climbed from 63% to 74%, but the pattern of lower highs has not been broken. Broad market trends are moving in a positive direction, but a failure to see continued strength and a confirmation of the highs being made by the S&P 500 could weigh on stocks next year. Source: StockCharts Robert W. Baird & Co. Page 6 of 8
7 BAIRD STRATEGIC ASSET ALLOCATION MODEL PORTFOLIOS Baird offers six strategic asset allocation model portfolios for consideration (see table below), four of which have a mix of equity and fixed income. An individual s personal situation, preferences and objectives may suggest an allocation more suitable than those shown below. Please consult a Baird Financial Advisor in determining an asset allocation that will meet your needs. Model Portfolio Mix: Stocks / (Bonds + Cash) Risk Tolerance All Growth 100 / 0 Well above average Capital Growth 80 / 20 Above average Growth with Income Income with Growth Conservative Income Capital Preservation 60 / 40 Average 40 / 60 Below average 20 / 80 Well below average 0 / 100 Well below average Strategic Asset Allocation Model Summary Emphasis on providing aggressive growth of capital with high fluctuations in the annual returns and overall market value of the portfolio. Emphasis on providing growth of capital with moderately high fluctuations in the annual returns and overall market value of the portfolio. Emphasis on providing moderate growth of capital and some current income with moderate fluctuations in annual returns and overall market value of the portfolio. Emphasis on providing high current income and some growth of capital with moderate fluctuations in the annual returns and overall market value of the portfolio. Emphasis on providing high current income with relatively small fluctuations in the annual returns and overall market value of the portfolio. Emphasis on preserving capital while generating current income with relatively small fluctuations in the annual returns and overall market value of the portfolio. Baird s Investment Policy Committee offers a view of potential tactical allocations among equity, fixed income and cash, based upon a consideration of U.S. Federal Reserve policy, underlying U.S. economic fundamentals, investor sentiment, valuations, seasonal trends, and broad market trends. As conditions change, the Investment Policy Committee adjusts the weightings. The table below shows both the normal range and current recommended allocation to stocks, bonds and cash. Please consult a Baird Financial Advisor in determining if an adjustment to your strategic asset allocation is appropriate in your situation. Asset Class / Model Portfolio All Growth Capital Growth Growth with Income Income with Growth Conservative Income Capital Preservation Equities: Suggested allocation 95% 75% 55% 35% 15% 0% Normal range % 70-90% 50-70% 30-50% 10-30% 0% Fixed Income: Suggested allocation 0% 15% 35% 45% 50% 60% Normal range 0-0% 10-30% 30-50% 40-60% 45-65% 55 85% Cash: Suggested allocation 5% 10% 10% 20% 35% 40% Normal range 0-10% 0-20% 0-20% 10-30% 25-45% 15-45% ROBERT W. BAIRD S INVESTMENT POLICY COMMITTEE Bruce A. Bittles B. Craig Elder Jay E. Schwister, CFA Managing Director Director Managing Director Chief Investment Strategist PWM Fixed Income Analyst Baird Advisors, Sr. PM Kathy Blake Carey, CFA Jon A. Langenfeld, CFA Timothy M. Steffen, CPA, CFP Director Managing Director Director Associate Director of Asset Mgr Research Head of Global Equities Director of Financial Planning Patrick J. Cronin, CFA, CAIA Warren D. Pierson, CFA Laura K. Thurow, CFA Director Managing Director Managing Director Institutional Consulting Baird Advisors, Sr. PM Director of PWM Research, Prod & Svcs William A. Delwiche, CMT, CFA Managing Director Investment Strategist Robert W. Baird & Co. Page 7 of 8
8 Appendix Important Disclosures and Analyst Certification This is not a complete analysis of every material fact regarding any company, industry or security. The opinions expressed here reflect our judgment at this date and are subject to change. The information has been obtained from sources we consider to be reliable, but we cannot guarantee the accuracy. ADDITIONAL INFORMATION ON COMPANIES MENTIONED HEREIN IS AVAILABLE UPON REQUEST The Dow Jones Industrial Average, S&P 500, S&P 400 and Russell 2000 are unmanaged common stock indices used to measure and report performance of various sectors of the stock market; direct investment in indices is not available. Baird is exempt from the requirement to hold an Australian financial services license. Baird is regulated by the United States Securities and Exchange Commission, FINRA, and various other self-regulatory organizations and those laws and regulations may differ from Australian laws. This report has been prepared in accordance with the laws and regulations governing United States broker-dealers and not Australian laws. Copyright 2017 Robert W. Baird & Co. Incorporated Other Disclosures United Kingdom ( UK ) disclosure requirements for the purpose of distributing this research into the UK and other countries for which Robert W. Baird Limited ( RWBL ) holds a MiFID passport. This material is distributed in the UK and the European Economic Area ( EEA ) by RWBL, which has an office at Finsbury Circus House, 15 Finsbury Circus, London EC2M 7EB and is authorized and regulated by the Financial Conduct Authority ( FCA ). For the purposes of the FCA requirements, this investment research report is classified as investment research and is objective. The views contained in this report (i) do not necessarily correspond to, and may differ from, the views of Robert W. Baird Limited or any other entity within the Baird Group, in particular Robert W. Baird & Co. Incorporated, and (ii) may differ from the views of another individual of Robert W. Baird Limited. All substantially material sources of the information contained in this report are disclosed. All sources of information in this report are reliable, but where there is any doubt as to reliability of a particular source, this is clearly indicated. Robert W. Baird Group and or one of its affiliates may at any time have a long or short position in the company/companies mentioned in this report. Where the Group holds a long or short position exceeding 0.5% of the total issued share capital of the issuer, this will be disclosed separately by your RWBL representative upon request. This material is only directed at and is only made available to persons in the EEA who would satisfy the criteria of being "Professional" investors under MiFID and to persons in the UK falling within articles 19, 38, 47, and 49 of the Financial Services and Markets Act of 2000 (Financial Promotion) Order 2005 (all such persons being referred to as relevant persons ). Accordingly, this document is intended only for persons regarded as investment professionals (or equivalent) and is not to be distributed to or passed onto any other person (such as persons who would be classified as Retail clients under MiFID). Robert W. Baird & Co. Incorporated and RWBL have in place organizational and administrative arrangements for the disclosure and avoidance of conflicts of interest with respect to research recommendations. Robert W. Baird Group and or one of its affiliates may be party to an agreement with the issuer that is the subject of this report relating to the provision of services of investment firms. An outline of the general approach taken by Robert W. Baird Limited in relation to conflicts of interest is available from your RWBL representative upon request. Baird s policies and procedures are designed to identify and effectively manage conflicts of interest related to the preparation and content of research reports and to promote objective and reliable research that reflects the truly held opinions of research analysts. Analysts certify on a quarterly basis that such research reports accurately reflect their personal views. This material is not intended for persons in jurisdictions where the distribution or publication of this research report is not permitted under the applicable laws or regulations of such jurisdiction. Investment involves risk. The price of securities may fluctuate and past performance is not indicative of future results. Any recommendation contained in the research report does not have regard to the specific investment objectives, financial situation and the particular needs of any individuals. You are advised to exercise caution in relation to the research report. If you are in any doubt about any of the contents of this document, you should obtain independent professional advice. RWBL is exempt from the requirement to hold an Australian financial services license. RWBL is regulated by the FCA under UK laws, which may differ from Australian laws. As such, this document has not been prepared in accordance with Australian laws. Robert W. Baird & Co. Page 8 of 8
Investment Strategy Outlook May 10, 2017
Baird Market & Investment Strategy Investment Strategy Outlook May 10, 2017 Please refer to Appendix Important Disclosures. Fed Looking Past First-Quarter Disappointments Outlook Summary Highlights: Surge
More informationInvestment Strategy Outlook June 24, 2016
Baird Market & Investment Strategy Investment Strategy Outlook June 24, 2016 Please refer to Appendix Important Disclosures. Outlook Summary 2016 At The Half: Contrasts and Consistency Highlights: Fed
More information2018 Economic & Stock Market Outlook: Clouds Could Test Investor Resolve
2018 Economic & Stock Market Outlook: Clouds Could Test Investor Resolve Supplemental Chart Pack December 13, 2017 Bruce Bittles Chief Investment Strategist (941) 906-2830 bbittles@rwbaird.com William
More informationMarket Commentary July 19, 2018
Baird Market and Investment Strategy Market Commentary July 19, 2018 Please refer to Appendix Important Disclosures. Equity Outflows Fuel Stock Gains Despite Breadth Concerns Key Takeaways: Indexes have
More informationBreaking News: Stock Market Update February 5, 2018
Baird Market and Investment Strategy Breaking News: Stock Market Update February 5, 2018 Please refer to Appendix Important Disclosures. Stock Market Update Stocks Under Pressure As Indexes Give Up 2018
More informationUncertainty Now; Opportunity Later: 2015 Economic & Stock Market Outlook, Mid-Year Update
Uncertainty Now; Opportunity Later: 2015 Economic & Stock Market Outlook, Mid-Year Update June 25, 2015 by Bruce Bittles, William Delwiche of Robert W. Baird & Co. The weight of the evidence has slipped
More informationWeight of the Evidence = +2 Mildly Bullish
Baird Market & Investment Strategy 2015 Economic & Stock Market Outlook Supplemental Chart Pack December 12, 2014 Please refer to Appendix Important Disclosures. The following charts and comments are meant
More information2014 Economic & Stock Market Outlook Mid-Year Chart Pack Update June 12, 2014
Baird Market & Investment Strategy 14 Economic & Stock Market Outlook Mid-Year Chart Pack Update June, 14 Please refer to Appendix Important Disclosures. The following charts and comments are meant to
More informationFastener Distributor Index April 2017
Fastener Distributor Index April 2017 Written by R.W. Baird analyst David J. Manthey, CFA 5/5/17 Key Takeaway: The seasonally-adjusted FDI for April 2017 was 50.2, remaining in expansionary territory but
More informationFastener Distributor Index March 2017
Fastener Distributor Index March 2017 Written by R.W. Baird analyst David J. Manthey, CFA 4/5/17 Key Takeaway: The seasonally adjusted FDI for March 2017 was 60.0, increasing from February s 57.0 reading
More information[Please refer to Appendix. Wells Fargo & Company (WFC) Q2 Initial Thoughts: Revenue Trends Modestly Below Expectations RESEARCH UPDATE
July 15, 2016 Baird Equity Research US Banks Wells Fargo & Company (WFC) Q2 Initial Thoughts: Revenue Trends Modestly Below Expectations WFC reported Q216 EPS of $1.01 (Baird $1.02, consensus $1.01). Non-core
More information[Please refer to Appendix. Regions Financial Corp. (RF) Q3 Initial Thoughts: Mixed Quarter with Lower Provisioning but Weaker NII RESEARCH UPDATE
October 18, 2016 Baird Equity Research US Banks Regions Financial Corp. (RF) Q3 Initial Thoughts: Mixed Quarter with Lower Provisioning but Weaker NII RF reported Q316 EPS of $0.24 (vs. Baird $0.22). Non-core
More information2018 Economic & Stock Market Outlook December 6, 2017
Baird Market & Investment Strategy 2018 Economic & Stock Market Outlook December 6, 2017 Please refer to Appendix Important Disclosures. Clouds Could Test Investor Resolve Outlook Summary Global growth
More informationFastener Distributor Index December 2017
Fastener Distributor Index December 2017 Written by R.W. Baird analyst David J. Manthey, CFA 1/9/18 Key Takeaway: The seasonally adjusted FDI for December 2017 was 57.6 up modestly vs. November s 56.9
More informationFed Delivers Another December Rate Hike
Fed Delivers Another December Rate Hike December 14, 2017 by Chris Molumphy of Franklin Templeton Investments The US Federal Reserve delivered another interest-rate hike at its December monetary policy
More information2015 Economic & Stock Market Outlook December 9, 2014
Baird Market & Investment Strategy 2015 Economic & Stock Market Outlook December 9, 2014 Please refer to Appendix Important Disclosures. Weight of the Evidence Points North Outlook Summary Economy continues
More informationEconomic Views Brief OPTIMISM DOMINATES THE 2018 OUTLOOK.
Economic Views Brief Russell T. Price, CFA, Senior Economist December 14, 2017 OPTIMISM DOMINATES THE 2018 OUTLOOK. The U.S. economy appears set to enter 2018 with good momentum and solid fundamentals.
More information[Please refer to Appendix. C.H. Robinson Worldwide, Inc. (CHRW) Complementary Global Forwarding Acquisition Announced RESEARCH UPDATE
September 1, 2016 Baird Equity Research Transportation/Logistics C.H. Robinson Worldwide, Inc. (CHRW) Complementary Global Forwarding Acquisition Announced Maintain Neutral rating. After market close,
More informationNavigating the New Environment
Navigating the New Environment May 12, 2018 by Liz Ann Sonders, Jeffrey Kleintop & Brad Sorensen of Charles Schwab Key Points U.S. stock indexes have rebounded from their correction lows, although remain
More information[Please refer to Appendix. Verizon Communications, Inc. (VZ) Competition Weighing on Revenue, but Cash Flow Solid RAISING PRICE TARGET
July 26, 2016 Baird Equity Research Connected Technology Verizon Communications, Inc. (VZ) Competition Weighing on Revenue, but Cash Flow Solid Maintain Neutral rating. This morning, Verizon reported mixed
More information[Please refer to Appendix. Sherwin-Williams Co. (SHW) High-Quality Beat Positive for Shares RESEARCH UPDATE
April 21, 2016 Baird Equity Research Packaging & Coatings Sherwin-Williams Co. (SHW) High-Quality Beat Positive for Shares Strong start to 2016 led by core sales. We believe that the shares of Sherwin-Williams
More information[Please refer to Appendix. Comcast Corporation (CMCSA) Solid Q3, Though Competition Concerns Weighing on Stock ESTIMATE CHANGE
October 27, 2016 Baird Equity Research Connected Technology Comcast Corporation (CMCSA) Solid Q3, Though Competition Concerns Weighing on Stock X1 a differentiator. Yesterday morning Comcast reported solid
More informationCORRECTION PERSPECTIVES
LPL RESEARCH WEEKLY MARKET COMMENTARY February 12 2018 CORRECTION PERSPECTIVES John Lynch Chief Investment Strategist, LPL Financial KEY TAKEAWAYS A perfect storm of investor worries collided over the
More informationBah Humbug: U.S. Markets Tumble to Yearly Lows After Fed Guidance Projects More Rate Hikes for 2019
Bah Humbug: U.S. Markets Tumble to Yearly Lows After Fed Guidance Projects More Rate Hikes for 2019 December 19, 2018 by Paul Eitelman of Russell Investments Markets hit the rewind button this afternoon
More informationANOTHER TOUGH WEEK COMMENTARY REASSURANCE KEY TAKEAWAYS LPL RESEARCH WEEKLY MARKET. October
LPL RESEARCH WEEKLY MARKET COMMENTARY October 29 2018 ANOTHER TOUGH WEEK John Lynch Chief Investment Strategist, LPL Financial Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial Ryan Detrick, CMT
More information[Please refer to Appendix. Sherwin-Williams Co. (SHW) Clean 4Q Beat Solid Guidance VAL on Track RESEARCH UPDATE
January 26, 2017 Baird Equity Research Packaging & Coatings Sherwin-Williams Co. (SHW) Clean 4Q Beat Solid Guidance VAL on Track Reiterate Outperform rating Top Coatings Pick. We believe that the shares
More informationDIGEST. Tax Reform Myths and Realities PAGE 1. How Tax Reform Impacts Charitable Giving Maximize Your Gifts With These Tax-Efficient Strategies
DIGEST NEWS AND PERSPECTIVE FOR GROWING AND PRESERVING YOUR WEALTH SPRING 2018 Tax Reform Myths and Realities PAGE 1 How Tax Reform Impacts Charitable Giving Maximize Your Gifts With These Tax-Efficient
More informationUPDATE ON GROWTH AND VALUE STOCKS
LPL RESEARCH WEEKLY MARKET COMMENTARY September 18 2017 UPDATE ON GROWTH AND VALUE STOCKS Burt White Chief Investment Officer, LPL Financial Jeffrey Buchbinder, CFA Market Strategist, LPL Financial KEY
More informationExtending the Cycle. December 8, 2015 by Erik Knutzen of Neuberger Berman
Extending the Cycle December 8, 2015 by Erik Knutzen of Neuberger Berman We think recent market turbulence is a midcourse bump in a rather long road. At our most recent (fourth-quarter) Asset Allocation
More information2017 was a Banner Year Look for a More Normal 2018
Retirement Income Solutions Helping to grow and preserve your wealth 2017 was a Banner Year Look for a More Normal 2018 February 2018 Summary The U.S. stock market posted a strong 2017 with returns of
More informationFED UP WITH LOW INTEREST RATES?
FED UP WITH LOW INTEREST RATES? Will the US Federal Reserve hike interest rates in 2015, and what effect would this have on the fledgling US economic recovery and the financial markets? Authors: Kathleen
More informationGlobal Bear Market at our Doorstep?
6 June 2012 Global Bear Market at our Doorstep? by William Cai, Vice President, Personal Financial Services This article was featured in the Jun 2012 issue of The Business Times. Below is the original
More informationMarket Bulletin. 1Q18 earnings update: A tailwind from taxes. April 27, In brief. Volatility shows up to the party
Market Bulletin April 27, 2018 1Q18 earnings update: A tailwind from taxes In brief Volatility returned in the first quarter of 2018 as markets struggled to find their footing amidst concerns of inflation,
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 informationEconomic Perspectives 3 rd Quarter Executive Summary. TRICIA NEWCOMB CIMA Associate, Senior Strategy Analyst
Economic Perspectives 3 rd Quarter 2017 Executive Summary The final estimate of Q2 GDP indicated that the economy grew at a 3.1% rate, the highest quarterly growth rate since Q1 of 2015. Consumer spending
More informationAnother Milestone on the Road to Policy Normalization
LEADERSHIP SERIES OCTOBER 2017 A feature article from our U.S. partners Another Milestone on the Road to Policy Normalization The twin tailwinds of strong earnings and easing financial conditions are unlikely
More informationRisk of Policy Error Clearly Rising Some Key Charts and Index Levels
Risk of Policy Error Clearly Rising Some Key Charts and Index Levels 4 th March 2018 What a difference a few weeks make. At the end of January, financial markets were melting up, commentators were salivating
More informationKey Takeaways. Global Investment Strategy Technical Strategy Briefing. U.S. Dollar Index. S&P 500 Index. Chart of the Week. Crude Oil.
Global Investment Strategy Technical Strategy Briefing May 8, 2017 Sameer Samana, CFA Global Quantitative and Technical Strategist Key Takeaways S&P 500 Index The S&P 500 Index is continuing to consolidate
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 information"Phenomenal" Expectations
"Phenomenal" Expectations March 4, 2017 by Liz Ann Sonders, Brad Sorensen and Jeffrey Kleintop of Charles Schwab Key Points U.S. stock indexes broke to the upside, on better economic data but also heightened
More informationINTERNATIONAL 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 informationMarket Perspective. Our View After the Snapback
Market Perspective Our View After the Snapback January 22, 2019 Investment and Insurance Products: Are not FDIC or any other Government Agency Insured Are not Bank Guaranteed May Lose Value Keith Lerner,
More informationforward PERSPECTIVES The Next Chapter: Lower Returns and Higher Volatility Bruce Cooper, CFA TD Asset Management Ken Miner, CFA TD Asset Management
forward PERSPECTIVES The Next Chapter: Lower Returns and Higher Volatility Bruce Cooper, CFA TD Asset Management Ken Miner, CFA TD Asset Management December 2014 The Next Chapter: Lower Returns and Higher
More informationStorm Clouds and Silver Linings
INSIGHTS MARCH 2018 A feature article from our U.S. partners Storm Clouds and Silver Linings The recent correction rattled the market, but it may be just what stocks needed to resume their uptrend. Jurrien
More informationGlobal Macroeconomic Monthly Review
Global Macroeconomic Monthly Review April 2019 Dr. Gil Michael Bufman, Chief Economist Arie Tal, Research Economist Economics Department, Capital Markets Division 1 Please see disclaimer on the last page
More informationFinancial Markets Perspective
Financial Markets Perspective 4101 Main Street, Suite C Hilton Head Island, SC 29926 843.342.3044 www.victoriacapitalus.com FUNDAMENTALS MATTER January 2014 A BRIEF SUMMARY OF THE CURRENT ECONOMY Last
More informationFOURTH QUARTER EARNINGS SEASON
LPL RESEARCH WEEKLY MARKET COMMENTARY KEY TAKEAWAYS We expect a solid fourth quarter earnings season and believe a 14 16% year-over-year increase in S&P 5 earnings is achievable. Economic surprises, strong
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 informationIntermediate Outlook July 13-20, 2009 Jim Curry, Publisher
Intermediate Outlook July 13-20, 2009 Jim Curry, Publisher S&P 500 CASH S&P 500 Cash Index - 07/17/09 Close - 940.38 SPX CASH: 5-Day Projected Support and Resistance levels: High - 976; Low - 908 SEPT
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 informationGlobal Equities PUTTING RECENT MARKET VOLATILITY IN PERSPECTIVE
PRICE POINT February 2018 Timely intelligence and analysis for our clients. Global Equities PUTTING RECENT MARKET VOLATILITY IN PERSPECTIVE KEY POINTS The upswing in equity market volatility can be attributed
More informationOUT OF THE WOODS? COMMENTARY STRONG FUNDAMENTALS KEY TAKEAWAYS LPL RESEARCH WEEKLY MARKET. February
LPL RESEARCH WEEKLY MARKET COMMENTARY February 20 2018 OUT OF THE WOODS? John Lynch Chief Investment Strategist, LPL Financial Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial KEY TAKEAWAYS Stocks
More informationCornerstone Report: Weekly Market Update
Cornerstone Report: David McCord, CMT After a rocket move off the lows, which impressively ate into a good chunk of overhead resistance, stocks were turned away at the 200-day average. I m starting with
More informationSTRONG WEEK AHEAD OF BIG WEEKEND
LPL RESEARCH WEEKLY MARKET COMMENTARY December 3 2018 STRONG WEEK AHEAD OF BIG WEEKEND John Lynch Chief Investment Strategist, LPL Financial Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial KEY
More informationMarket Maps. Bob Dickey, Technical Strategist, Portfolio Advisory Group. December RBC Capital Markets, LLC / Portfolio Advisory Group
Market Maps Bob Dickey, Technical Strategist, Portfolio Advisory Group RBC Capital Markets, LLC / Portfolio Advisory Group All values in U.S. dollars and priced as of market close, December 1, 2017, unless
More information2018 MID YEAR OUTLOOK
2018 MID YEAR OUTLOOK MAIN THEMES Reflection Outlook Top of Mind REFLECTION SYNTRINSIC INVESTMENT COMMITTEE Syntrinsic s internal Investment Committee collaboratively evaluates economic data, forecasts
More informationINVESTMENT STRATEGY. Volatility Returns. us.cibc.com/private-wealth
INVESTMENT FINANCIAL STRARTEGY MARKETS VOLATILITY MONITOR RETURNS INVESTMENT STRATEGY Volatility Returns 1 The S&P 500 has dropped over six consecutive trading sessions and is now 7% below the all-time
More informationSunTrust Advisory Services, Inc. Market Perspective The Pain Trade. Keith Lerner, CFA, CMT Director, Chief Market Strategist March 6, 2017
SunTrust Advisory Services, Inc. Market Perspective The Pain Trade Keith Lerner, CFA, CMT Director, Chief Market Strategist March 6, 2017 The Pain Trade Far more money has been lost by investors preparing
More informationWILL GOLD CONTINUE TO SHINE?
LPL RESEARCH WEEKLY MARKET COMMENTARY March 7 216 WILL GOLD CONTINUE TO SHINE? Burt White Chief Investment Officer, LPL Financial Jeffrey Buchbinder, CFA Market Strategist, LPL Financial KEY TAKEAWAYS
More informationGAUGING GLOBAL GROWTH: AN UPDATE FOR 2015 & 2016 John J. Canally, Jr., CFA Chief Economic Strategist, LPL Financial
LPL RESEARCH WEEKLY ECONOMIC COMMENTARY October 1 15 GAUGING GLOBAL GROWTH: AN UPDATE FOR 15 & 16 John J. Canally, Jr., CFA Chief Economic Strategist, LPL Financial KEY TAKEAWAYS As companies report third
More informationMedium Risk Portfolio QUANTUM FUNDS PORTFOLIO REVIEW NOVEMBER DECEMBER 2014 OBJECTIVE AND STRATEGY COMPOSITION OF PORTFOLIO QUANTUM FUNDS
QUANTUM FUNDS ($500 INVESTMENT) Medium Risk Portfolio QUANTUM FUNDS PORTFOLIO REVIEW NOVEMBER OBJECTIVE AND STRATEGY The fund pursues the objective of long-term total returns combined with capital preservation.
More informationMELT-UP OR MELT-DOWN?
LPL RESEARCH WEEKLY MARKET COMMENTARY February 5 2018 MELT-UP OR MELT-DOWN? John Lynch Chief Investment Strategist, LPL Financial Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial KEY TAKEAWAYS
More informationUS Q3 GDP acceleration due to inventory build but final domestic demand remains weak
ISSN: 1791 35 35 November 26, 2013 Olga Kosma Economic Analyst okosma@eurobank.gr US Q3 GDP acceleration due to inventory build but final domestic demand remains weak Real GDP accelerated to 2.8% q-o-q
More informationQ EARNINGS PREVIEW:
LPL RESEARCH WEEKLY MARKET COMMENTARY July 5 216 216 EARNINGS PREVIEW: BETTER TIMES AHEAD? Burt White Chief Investment Officer, LPL Financial Jeffrey Buchbinder, CFA Market Strategist, LPL Financial KEY
More informationNovember 2017 Market Update
Market Update (11/2017) Allianz Investment Management LLC November 2017 Market Update Key Points Equities rallied to fresh all-time highs as the prospects for tax reform continued to move forward. Jay
More informationOctober 2016 Market Update
Market Update (10/2016) Allianz Investment Management LLC October 2016 Market Update Key Points The lack of further easing measures from both the Bank of Japan and the European Central Bank are causing
More informationWILL YIELDS KEEP RISING?
LPL RESEARCH B O N D MARKET PERSPECTIVES February 6 2018 WILL YIELDS KEEP RISING? John Lynch Chief Investment Strategist, LPL Financial Colin Allen, CFA Assistant Vice President, LPL Financial KEY TAKEAWAYS
More informationKey Takeaways. Global Investment Strategy Technical Strategy Briefing. U.S. Dollar Index. S&P 500 Index. Chart of the Week. Crude Oil.
Global Investment Strategy Technical Strategy Briefing July 10, 2017 Sameer Samana, CFA Global Quantitative and Technical Strategist Key Takeaways S&P 500 Index The S&P 500 Index has broken out and remains
More informationAppendix 1: Materials used by Mr. Kos
Presentation Materials (PDF) Pages 192 to 203 of the Transcript Appendix 1: Materials used by Mr. Kos Page 1 Top panel Title: Current U.S. 3-Month Deposit Rates and Rates Implied by Traded Forward Rate
More informationA year of opportunities
Foresters Financial Clark D. Wagner President Foresters Investment Management Company, Inc. and Chief Investment Officer Foresters Financial Edwin D. Miska Director of Equities Foresters Investment Management
More information2016 April Financial Market Update
Charles Sherry Director, Institutional Education Group Blue Ocean Global Wealth 51 Monroe St., Plaza West 06 Rockville, MD 20850 Tel: 720.308.4560 csherry@blueoceanglobalwealth.com 2016 April Financial
More informationMarket Insight: It s Nasty Out There Is This a Bear Market?
December 16, 2018 Market Insight: It s Nasty Out There Is This a Bear Market? Year-end commentaries are supposed to be filled with reflection, thankfulness, and inspiration for the New Year. In the grand
More informationGot to love these odds
Got to love these odds April tends to be kind, not cruel, to stocks. Published 04-05-2019 Linda Duessel, CFA, CPA, CFP Senior Vice President Senior Equity Strategist As we sit on the verge of another earnings
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 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 informationPERSPECTIVE ON MARKET VOLATILITY
LPL RESEARCH WEEKLY MARKET COMMENTARY October 15 2018 PERSPECTIVE ON MARKET VOLATILITY John Lynch Chief Investment Strategist, LPL Financial Ryan Detrick, CMT Senior Market Strategist, LPL Financial Jeffrey
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 informationThe Economy, Inflation, and Monetary Policy
The views expressed today are my own and not necessarily those of the Federal Reserve System or the FOMC. Good afternoon, I m pleased to be here today. I am also delighted to be in Philadelphia. While
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 informationWhy is Investor Confidence Lagging?
Veronica Willis Investment Strategy Analyst WEEKLY GUIDANCE ON ECONOMIC AND GEOPOLITICAL EVENTS Why is Investor Confidence Lagging? July 3, 2018 Key takeaways» Typically, late in the economic cycle, we
More informationCLICK TO EDIT MASTER TITLE STYLE Market Perspective
Market Perspective Bull Market Intact as Healthy Reset Continues May 9, 2018 Investment and Insurance Products: Are not FDIC or any other Government Agency Insured Are not Bank Guaranteed May Lose Value
More informationMidyear Forecast: The Economy and Markets in 2017
Midyear Forecast: The Economy and Markets in 2017 As we move into the second half of 2017, we find ourselves in a familiar place. Once again, as in 2016, we saw a weak first quarter and rising concerns
More informationFixed Income Strategy
April 2018 Fixed Income Strategy It Looks Like the 3% Target on the 10-Year Treasury Yield Will Have to Wait Richard Belley, CFA, Fixed Income Strategist After months of relative underperformance, fixed
More informationProceed With Caution: Higher Probability for Normalized Market Returns Ahead
September 2015 Matt Neska, CFA, Domestic Equity Specialist Proceed With Caution: Higher Probability for Normalized Market Returns Ahead The current bull market in U.S. equities is entering its seventh
More informationCyclical Asset Allocation Quarterly
Global Investment Strategy Cyclical Asset Allocation Quarterly April 2, 2018 Our cyclical asset allocation process is based on a rolling three-year outlook which means that the Global Investment Strategy
More informationDON T SELL IN MAY COMMENTARY THE WORST SIX MONTHS OF THE YEAR KEY TAKEAWAYS LPL RESEARCH WEEKLY MARKET SELL IN MAY. May
LPL RESEARCH WEEKLY MARKET COMMENTARY May 7 2018 DON T SELL IN MAY John Lynch Chief Investment Strategist, LPL Financial Ryan Detrick, CMT Senior Market Strategist, LPL Financial KEY TAKEAWAYS The May
More informationChristopher Kent: Financial conditions and the Australian dollar - recent developments
Christopher Kent: Financial conditions and the Australian dollar - recent developments Address by Mr Christopher Kent, Assistant Governor (Financial Markets) of the Reserve Bank of Australia, to the XE
More informationFIVE FORECASTERS: FEW WARNING SIGNS
LPL RESEARCH WEEKLY MARKET COMMENTARY January 25 2016 FIVE FORECASTERS: FEW WARNING SIGNS Burt White Chief Investment Officer, LPL Financial; Jeffrey Buchbinder, CFA Market Strategist, LPL Financial; Barry
More informationLast Gasp in the Dollar. Market Update May 18, Seattle Technical Advisors
SeattleTA provides investment managers with technical analysis of the equity, fixed-income, commodity, and currency markets. While equities are expected to take a hit this week, the big news is expected
More informationEditor: Thomas Nilsson. The Week Ahead Key Events Jul, 2017
Editor: Thomas Nilsson The Week Ahead Key Events 10 16 Jul, 2017 European Sovereign Rating Reviews Recent rating reviews Upcoming rating reviews Source: Bloomberg Monday 10, 08.00 NOR: CPI (Jun) SEB Cons.
More information2018 Stock Market Outlook: Double-Digit Returns?
2018 Stock Market Outlook: Double-Digit Returns? January 4, 2018 by John Lynch of LPL Financial KEY TAKEAWAYS We forecast 8 10% returns for the S&P 500 in 2018. The S&P 500 is well positioned to generate
More informationFund Managers Get Bullish
Fund Managers Get Bullish November 15, 2017 by Urban Carmel of The Fat Pitch Summary: Global equities have risen 18% so far in 2017 and yet, until this month, fund managers have held significant amounts
More informationGundlach s Forecast for 2017
Gundlach s Forecast for 2017 January 11, 2017 by Robert Huebscher Investors will confront excessive debt, high P/E levels and political uncertainty as they enter the Trump presidential era. In response,
More informationWhat Is Behind the Equity Sell-Off?
IN-D EPTH A NALYSIS OF THE E QUITY MARKETS Investment Strategy Team What Is Behind the Equity Sell-Off? March 26, 2018 Key takeaways» Investors are concerned about the negative implications of a potential
More informationMarket Maps. Bob Dickey, Technical Strategist, Portfolio Advisory Group. April RBC Capital Markets, LLC / Portfolio Advisory Group
Market Maps Bob Dickey, Technical Strategist, Portfolio Advisory Group RBC Capital Markets, LLC / Portfolio Advisory Group All values in U.S. dollars and priced as of March 29, 2018, unless otherwise noted
More informationWILL EIGHT BE GREAT FOR THE BULL?
LPL RESEARCH WEEKLY MARKET COMMENTARY March 14 2016 WILL EIGHT BE GREAT FOR THE BULL? Burt White Chief Investment Officer, LPL Financial Jeffrey Buchbinder, CFA Market Strategist, LPL Financial KEY TAKEAWAYS
More informationWeekly Market Commentary
LPL FINANCIAL RESEARCH Weekly Market Commentary November 18, 2014 Emerging Markets Opportunity Still Emerging Burt White Chief Investment Officer LPL Financial Jeffrey Buchbinder, CFA Market Strategist
More informationAs we enter 2014, global economic growth seems to be on stronger footing across the world as the U.S. Fed is poised to begin
2014 Outlook Amid significant headwinds in 2013 the fiscal cliff, continued economic uncertainty, geopolitical issues and the partial government shutdown U.S. economic expansion remained subdued relative
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 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 information