Quality stocks take a bite out of momentum
|
|
- Beatrix McLaughlin
- 5 years ago
- Views:
Transcription
1 Capital market insights Conversation guide August 2018 Quality stocks take a bite out of momentum Shark Week may be a late summer television staple, but stock investors have seen plenty of FAANGs throughout this entire year. The tech and internet heavyweights Facebook, Amazon, Apple, Netflix and Google swim at the top of the stock market food chain, but recent earnings stumbles have raised doubts about their future dominance. As the economic cycle evolves, momentum may begin to fade while fundamentals rise to the surface. That makes stock selection more crucial for returns as, historically, quality companies are positioned to potentially outperform in more difficult market conditions. Market leadership appears to be shifting from momentum to quality stocks. Earnings growth is coming from a diverse range of sources. Quality growth stocks tend to perform well at this point of the economic cycle.
2 Market leadership appears to be shifting from momentum to quality stocks. Year-to-date stock market gains have been driven almost exclusively by a handful of fast growing and well-known technology firms. The combined total return of the FAANG stocks outperformed the S&P 500 Index ( S&P 500 ) as a whole in the first half of 2018, 3.38% vs. 2.65%, respectively. If you take out the six-month return contribution of these five stocks from the S&P 500, the rest of the index would be in negative territory for the first half of the year. Recent stumbles from these market leaders show that momentum may be losing steam and stocks appear to be trading more on fundamental factors. While the narrow band of market leading stocks may be testing the limits of their growth potential, stocks of companies with stable earnings and strong balance sheets are poised to likely contribute more to future stock market growth. Chart 1: S&P 500 Index quality stocks vs. momentum stocks October 2015 to July S&P 500 Quality S&P 500 Momentum Oct-15 Apr-16 Oct-16 Apr-17 Oct-17 Apr-18. Source for chart data: FactSet. Past performance does not guarantee future results. Capital market insights 2
3 Earnings growth is coming from a diverse range of sources. FactSet estimates Q2 earnings growth from S&P 500 companies will continue to rise at a year-overyear rate of 21.3%; and if so, marking the second quarter in a row when earnings growth comes in at an annualized rate of more than 20%. The tandem rise in earnings growth and the stock market serves as a good reminder that corporate earnings are the primary driver of stock market performance, not simply momentum. It s not all about tax reform recent strength in earnings growth has more to do with fundamentals than tax reform. Of the 21% earnings growth rate expected for Q2, the majority (17%) is coming from fundamental sources such as revenue growth and margin expansion. Even factoring out the contributions from lower corporate taxes and share buybacks, earnings growth would still be at a healthy rate in the mid-teens indicating that most earnings strength is not coming from the sugar rush of tax reform. Projections of future earnings growth for the next two years also indicate a continuation of ongoing strength in the fundamental drivers of earnings and a waning influence from tax reform. Chart 2: Contributions to earnings growth, estimated Calendar years % Revenue Growth Margin Expansion 7% Share Repurchases 1% 5% 10% 1% 9% 1% 1% 3% 4% 8% 5% 4% 2018E 2019E 2020E Source for data: FactSet, Nationwide estimates (August 2018) Capital market insights 3
4 Quality growth stocks tend to perform well at this point of the economic cycle. Quality growth can be defined as companies that historically exhibit stable earnings, good cash flow, a strong balance sheet and a defensible competitive position in the marketplace. Perhaps more crucial, quality growth companies are those that have multiple levers they can pull to sustain performance and profitability as the economic cycle evolves and business conditions change. Earnings growth may become more difficult for companies to achieve in the later stages of the expansion cycle that s why quality companies that have strong fundamentals and greater flexibility appear better poised to outperform momentum stocks. As fundamentals move to the forefront, stock selection and active portfolio management become more important to achieving consistent returns. Chart 3: 10-year risk/return comparison July 2008-July % 12.0% MSCI Quality (U.S.) Annualized Return 11.5% 11.0% MSCI Momentum (U.S.) S&P % 14.0% 14.5% 15.0% 15.5% Standard Deviation Source for chart data: Morningstar. Past performance does not guarantee future results. Capital market insights 4
5 Key takeaways Stock investors have been smitten with the FAANG stocks this year, but their recent stumbles may be a sign of a market in transition. Earnings growth may become more difficult for companies to achieve in the later stages of the expansion cycle that s why quality companies that have strong fundamentals and greater flexibility appear better poised to outperform momentum stocks. Look for market leadership to shift as the economic cycle continues to evolve. Earnings may continue to be strong and drive stock returns, especially as momentum factors fade and higher quality companies become more meaningful later in the economic cycle. Include exposure to quality companies in your equity allocation to position your portfolio for the rising importance of fundamentals. For more help or information, contact your financial advisor. This material is not a recommendation to buy, sell, hold or roll over any asset, adopt an investment strategy, retain a specific investment manager or use a particular account type. It does not take into account the specific investment objectives, tax and financial condition or particular needs of any specific person. Investors should discuss their specific situation with their financial professional. Except where otherwise indicated, the views and opinions expressed are those of Nationwide as of the date noted, are subject to change at any time and may not come to pass. S&P 500 Index: An unmanaged, market capitalization-weighted index of 500 stocks of leading large cap U.S. companies in leading industries; gives a broad look at the U.S. equities market and those companies stock price performance. MSCI US Index: A free float-adjusted market capitalization weighted index that is comprised of equity Real Estate Investment Trusts (REITs). The index is based on the MSCI USA Investable Market Index (IMI), its parent index, which captures the large, mid and small cap segments of the USA market. Nationwide Funds are distributed by Nationwide Fund Distributors LLC (NFD), member FINRA, Columbus, Ohio. Nationwide Investment Services Corporation, member FINRA. Nationwide, the Nationwide N and Eagle and Nationwide is on your side are service marks of Nationwide Mutual Insurance Company Nationwide MFM-2896AO.1 (08/18)
The inflation threat: real or exaggerated?
Capital market insights Conversation guide March 2018 The inflation threat: real or exaggerated? Volatility has returned to the stock market, as investors have become increasingly concerned that accelerating
More informationmay reveal new opportunities
Understanding the business cycle Overview Understanding the business cycle may reveal new opportunities Learn about the business cycle and where we are now, so you can make more informed choices about
More informationGetting ahead of the (yield) curve
Capital market insights Conversation guide May 2018 Getting ahead of the (yield) curve The yield curve has been a hot topic in the financial media recently. It is one of the best indicators of future economic
More informationWill Trump s tariffs topple U.S. growth?
Capital market insights Conversation guide June 2018 Will Trump s tariffs topple U.S. growth? Global investors had plenty of reasons to worry over the last month including fresh doubts about the European
More informationVolatility returns, fundamentals remain strong
Capital market insights Conversation guide February 2018 Volatility returns, fundamentals remain strong If record-low volatility and more than a year of positive monthly returns on the S&P 500 Index had
More informationSectors Are Shifting: The Impact of the New GICS Framework
LEADERSHIP SERIES Sectors Are Shifting: The Impact of the New GICS Framework Four important considerations for sector investors. Denise Chisholm l Sector Strategist Richard Biagini l Quantitative Analyst
More informationReducing home bias and portfolio volatility through global investing
Home bias White paper Reducing home bias and portfolio volatility through global investing Key highlights Home bias is the tendency for investors to favor or overweight domestic investments in their portfolios
More informationNationwide 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 informationTop 10 Reasons This Remains A Misunderstood and Underutilized Asset Class. Please see last page for important disclosures.
18 INTERNATIONAL SMALL CAP Top 10 Reasons This Remains A Misunderstood and Underutilized Asset Class Please see last page for important disclosures. 1 INTERNATIONAL INVESTING IS RISKY. 2 INTERNATIONAL
More informationBusiness cycle investing
+5+5+5+8++15 +11 U+15 Business cycle investing White paper Business cycle investing Learn how the business cycle influences investment performance and how investors can identify potential return opportunities.
More informationLPL RESEARCH PRIVATE CLIENT INSTITUTIONAL INSIGHTS THOUGHT LEADERSHIP. August 2016 DIVERSIFICATION MAY BE POISED FOR A COMEBACK MEMBER FINRA/SIPC
LPL RESEARCH PRIVATE CLIENT THOUGHT LEADERSHIP INSTITUTIONAL INSIGHTS August 2016 DIVERSIFICATION MAY BE POISED FOR A COMEBACK MEMBER FINRA/SIPC During the first half of 2016, diversification has provided
More informationA VERY GOOD SIX MONTHS FOR SMALL CAPS. Russell 2000, Relative Performance vs. Russell Jul May Mar Jun 2014.
LPL RESEARCH WEEKLY MARKET COMMENTARY il 20 SIZING UP SMALL CAPS Burt White Chief Investment Officer, LPL Financial Jeffrey Buchbinder ket Strategist, LPL Financial KEY TAKEAWAYS The Russell 2000 Index
More informationNATIONWIDE ASSET ALLOCATION INVESTMENT PROCESS
Nationwide Funds A Nationwide White Paper NATIONWIDE ASSET ALLOCATION INVESTMENT PROCESS May 2017 INTRODUCTION In the market decline of 2008, the S&P 500 Index lost more than 37%, numerous equity strategies
More informationNVIT Investor Destinations Funds
NVIT Investor Destinations Funds Nationwide VIT Quarterly Asset class: Allocation Share class Class II Strategy Overview The NVIT Investor Destinations Funds (NVIT ID Funds) consist of seven risk-based
More informationCapital Markets: Observations and Insights Searching for Yield and Asking for Trouble? As of June 30, 2016
Capital Markets: Observations and Insights Searching for Yield and Asking for Trouble? As of June 30, 2016 Key Observations Strong bond performance has supported bond-like equities and hurt growth stocks
More informationBalancing Risk with Return. Nationwide Investor Destinations Funds
Balancing Risk with Return Nationwide Investor Destinations Funds As of June 30, 2017 Nationwide Investor Destinations Funds Nationwide Investor Destinations Funds are risk-based asset allocation funds.
More informationWhy Active Now in U.S. Large-Cap Equity
LEADERSHIP SERIES Why Active Now in U.S. Large-Cap Equity With changing economic and market conditions, the time may be right for actively managed U.S. large-cap funds to take the lead. Darby Nielson,
More informationGoing Beyond Style Box Investing
Going Beyond Style Box Investing NCPERS Presented by Erin Doyle Orekhov, Client Portfolio Manager May 22, 2017 For financial professional or qualified institutional investor use only. Not for inspection
More informationBusiness cycle investing
Business cycle investing White paper Business cycle investing Learn how the business cycle influences investment performance and how investors can identify potential return opportunities. Key highlights
More informationQUARTERLY MARKET UPDATE January 2019
Year-End Market Reversal Symbol Name 2018 Return (%) AGG ishares Core US Aggregate Bond ETF 0.0 HYG ishares iboxx $ High Yield Corp Bd ETF -1.9 LQD ishares iboxx $ Invmt Grade Corp Bd ETF -3.8 SPY SPDR
More informationMarket Commentary. Economic Summary
Market Commentary 3 rd Quarter 208 Economic Summary The juggernaut that is the U.S. economy continued to roll, as it entered its ninth consecutive year of economic expansion. Until recently, growth has
More informationSmart Beta Dashboard. Thoughts at a Glance. June By the SPDR Americas Research Team
By the SPDR Americas Research Team Thoughts at a Glance Factor performance diverged across regions in Q2. In the US, all factors with the exception of underperformed broad US equities. As volatility in
More informationKeep cool as interest rates rise.
Capital market insights Conversation guide Nationwide Market Insights SM Keep cool as interest rates rise. Interest rates rose higher in the wake of President Trump s election last November. Expectations
More informationQuality Value Momentum Strategy
Quality Value Momentum Strategy Ford Equity Research 11722 Sorrento Valley Road, Suite I San Diego, CA 92121 800.842.0207 (USA) 858.455.6316 Fax www.fordequity.com Background Can a low-turnover portfolio
More informationSmart Beta Dashboard. Thoughts at a Glance. January By the SPDR Americas Research Team
By the SPDR Americas Research Team Thoughts at a Glance 2017 marked another year of factor performance shifts. s comeback in the US on the heels of the US election and the potential for a Trump-flation
More informationQuarterly Sector Update
FOURTH QUARTER 2016 Quarterly Sector Update PRIMARY CONTRIBUTORS Asset Allocation Research Team (AART) Fidelity Management & Research Company, Equity Division Fidelity SelectCo SECTOR UPDATE What Is Fidelity
More informationSector Investing: Essential Building Blocks for Portfolio Construction
Sector Investing: Essential Building Blocks for Portfolio Construction April 30, 2014 Brett Hammond Managing Director Head of Index Applied Research MSCI Matthew Goulet, CFA Vice President Sector Investment
More informationQuantitative Investing Integrating the Human Perspective
Quantitative Investing Integrating the Human Perspective Speaker: Vladimir de Vassal, CFA, Director of Quantitative Research Portfolio Manager, Quantitative Equities Glenmede Investment Management, L.P.
More informationCLICK TO EDIT MASTER TITLE STYLE Market Perspective
Market Perspective Global Earnings Remain Supportive November 8, 2017 Keith Lerner, CFA, CMT Managing Director, Chief Market Strategist 2017 SunTrust Banks, Inc. SunTrust is a federally registered service
More informationGMO Asset Allocation Insights
GMO Asset Allocation Insights FAANG SCHMAANG: Don t Blame the Over-valuation of the S&P Solely on Information Technology Anna Chetoukhina and Rick Friedman Introduction A small group of technology stocks
More informationSmart Beta Dashboard. Thoughts at a Glance. March By the SPDR Americas Research Team
By the SPDR Americas Research Team Thoughts at a Glance For the first two months of Q1, US outperformed the broader market by nearly 5%. However, as 10-year Treasury yields and inflation expectations came
More informationThird Quarter 2018 Review
Rush Zarrabian, CFA Portfolio Manager Corbett Road Investment Mgmt Macro Musings October 24, 2018 Third Quarter 2018 Review SUMMARY Despite the recent bout of market volatility, MACROCAST continues to
More informationINTERNATIONAL EQUITIES: FLEXIBLE APPROACHES ALIGN WITH DC PLAN SIMPLIFICATION
BENJAMIN SEGAL Portfolio Manager, Head of Global Equity Team BRIAN FALEIRO Product Specialist Global Equity Team KEITH SKINNER Product Specialist Global Equity Team MICHELLE RAPPA Head of Defined Contribution
More informationThe Compelling Case for Value
The Compelling Case for Value July 2, 2018 SOLELY FOR THE USE OF INSTITUTIONAL INVESTORS AND PROFESSIONAL ADVISORS 0 Jan-75 Jan-77 Jan-79 Jan-81 Jan-83 Jan-85 Jan-87 Jan-89 Jan-91 Jan-93 Jan-95 Jan-97
More informationWHY EQUITIES NOW? THINGS TO CONSIDER
October 4, 2017 WHY EQUITIES NOW? THINGS TO CONSIDER Scott Krauthamer, CFA, CAIA Managing Director Equities, AB MJ Zayac Director, Institutional Retirement Specialist, AB There is no guarantee that any
More informationLarge Cap Growth Strategy
Fourth Quarter 2018 Large Cap Growth Strategy Key Takeaways Peter Bourbeau Managing Director, Portfolio Manager Slowing global growth and signs of weakness among the market leaders of the last several
More informationAn All-Cap Core Investment Approach
An All-Cap Core Investment Approach A White Paper by Manning & Napier www.manning-napier.com Unless otherwise noted, all figures are based in USD. 1 What is an All-Cap Core Approach An All-Cap Core investment
More informationSMART BETA REBALANCE SUMMARY USA SINGLE FACTORS
SMART BETA REBALANCE SUMMARY USA SINGLE FACTORS NOVEMBER 2018 Momentum Index Sector Neutral Quality Index Enhanced Value Index Additions 69 18 16 Deletions 67 18 13 Turnover % 54% 21% 24% Wtd. Avg. Market
More informationHow to evaluate factor-based investment strategies
A feature article from our U.S. partners INSIGHTS SEPTEMBER 2018 How to evaluate factor-based investment strategies Due diligence on smart beta strategies should be anything but passive Original publication
More informationINVEST IN SOMETHING REAL NOT FOR USE IN OHIO.
TM INVEST IN SOMETHING REAL NOT FOR USE IN OHIO. RISK FACTORS u Past performance is not a guarantee of future results. u Investing in real estate assets entails certain risks, including changes in: the
More informationChart 1: Market Cap to GDP (Buffett Indicator) - The US stock market is still highly valued despite the recent performance. 2
December 24th, 2018 1 Since our framework turned negative in October, we have suggested that being defensive was the proper posture. We continue to support that assertion given the current market environment.
More informationSchroder ISF* QEP Global Quality Q Investment Report
For professional investors only Schroder ISF* QEP Global Quality Q2 2018 Investment Report * Schroder International Selection Fund is referred to as Schroder ISF throughout this document. Q2/2018 Schroders
More informationSTRATEGY OVERVIEW. Long/Short Equity. Related Funds: 361 Domestic Long/Short Equity Fund (ADMZX) 361 Global Long/Short Equity Fund (AGAZX)
STRATEGY OVERVIEW Long/Short Equity Related Funds: 361 Domestic Long/Short Equity Fund (ADMZX) 361 Global Long/Short Equity Fund (AGAZX) Strategy Thesis The thesis driving 361 s Long/Short Equity strategies
More informationA Case For Mid Cap Equities
THE MISSING PIECE Mid Caps A Case For Mid Cap Equities Mid-cap companies can provide opportunities to enhance portfolio returns with an attractive risk/return profile. However, like golfers who are missing
More informationWhy Global Dividend Growth?
Why Global Growth? Market Commentary 2018 WHEN INVESTORS ARE LOOKING FOR YIELD, many may consider dividend-paying equities. s offer a potentially consistent form of return and may help buffer risk during
More informationAlphaSolutions Sector Rotation Model
AlphaSolutions Sector Rotation Model An investment model based on trending and momentum strategies Portfolio Goals Primary: Seeks long term growth of capital by investing in highranked U.S. Equity Sectors
More informationAspiriant Risk-Managed Equity Allocation Fund RMEAX Q4 2018
Aspiriant Risk-Managed Equity Allocation Fund Q4 2018 Investment Objective Description The Aspiriant Risk-Managed Equity Allocation Fund ( or the Fund ) seeks to achieve long-term capital appreciation
More informationDIVERSIFICATION BY DESIGN
Legg Mason US Diversified Core ETF (Ticker: UDBI) Legg Mason Developed Ex-US Diversified Core ETF (Ticker: DDBI) Legg Mason Emerging Markets Diversified Core ETF (Ticker: EDBI) DIVERSIFICATION BY DESIGN
More informationQuarterly Sector Update
LEADERSHIP SERIES SECOND QUARTER 2018 Quarterly Sector Update PRIMARY CONTRIBUTORS Fidelity Management & Research Company, Equity Division SECTOR UPDATE Scorecard: Technology and Discretionary on Top U.S.
More informationCapturing Opportunity, Managing Risk
EVOLVING WORLD GROWTH FUND Capturing Opportunity, Managing Risk An Active Approach to Emerging Markets Investing THE CALAMOS DOCTRINE As the global marketplace changes, successfully investing for growth
More informationCalamos Growth Fund (CVGRX)
Calamos Growth Fund (CVGRX) Active Growth Investing for Over 20 Years 2Q 2015 The opinions referenced are as of the date of publication and are subject to change due to changes in the market or economic
More informationLPL RESEARCH THOUGHT. October 2018 LEADERSHIP. Sustainable Investing. Strategic Discover y MEMBER FINRA/SIPC
LPL RESEARCH P R I VA T E C L I E N T THOUGHT October 2018 LEADERSHIP Sustainable Investing Strategic Discover y MEMBER FINRA/SIPC CONSIDER THE FOLLOWING An energy company fails to uphold sound health
More informationDispelling the Myths of International Investing
LEADERSHIP SERIES Dispelling the Myths of International Investing There are multiple reasons to consider an increased allocation to this often-misunderstood asset class. The long-term rally in U.S. stocks
More informationIn our experience, advisors often work to educate their clients about the importance of diversification across asset classes.
THE BTS TACTICAL FIXED INCOME FUND IN THE CONTEXT OF A BROADER PORTFOLIO by Matthew Pasts, CMT, CEO, BTS Asset Management, Inc. In our experience, advisors often work to educate their clients about the
More informationQ Performance Report
Q1 2018 Performance Report Generated by: NASDAQ: TIPRX (A Shares) Investing in the Fund involves risks, including the risk that you may receive little or no return on your investment or that you may lose
More informationQuantitative Review of U.S. Equities Second Quarter 2018
Quantitative Review of U.S. Equities Second Quarter 2018 Despite heightened concerns about global trade barriers in an environment of new tariffs and aggressive trade rhetoric, U.S. equities moved solidly
More informationPACIFIC FUNDS SM DIVERSIFIED ALTERNATIVES
PACIFIC FUNDS SM DIVERSIFIED ALTERNATIVES AN ALTERNATIVE ASSET CLASS SOLUTION AS OF 12/31/17 MFC0769-1217 DIVERSIFY TO HELP MANAGE MARKET VOLATILITY AND GENERATE SMOOTHER RETURNS Many investors are looking
More informationA Global Tactical Asset Allocation Fund
Voya Perspectives Markets. Insights. Opportunities. TM Strategies Perspectives Fund Broad Diversification Based on Market Fundamentals Broad global diversification offers access to a world of opportunities
More informationGLOBAL EQUITY MARKET OUTLOOK: FAVOR U.S.; STICK WITH EM
LPL RESEARCH WEEKLY MARKET COMMENTARY KEY TAKEAWAYS U.S. economic and earnings growth continue to stand out globally and support our positive view of U.S. equities. We continue to see upside potential
More informationSocial Security 5 th Annual Consumer Survey
NATIONWIDE RETIREMENT INSTITUTE Social Security 5 th Annual Consumer Survey April 2018 Future retirees* have fears about Social Security that are out of their control 4 of 5 agree the Social Security system
More informationOppenheimer Rising Dividends Fund
Ticker Symbols: OARDX (Class A shares), OYRDX (Class Y shares), OIRDX (Class I shares) Performance Summary Portfolio Managers Raman Vardharaj, CFA Since 06/18 Manind Govil, CFA Since 10/16 Client Portfolio
More informationWells Fargo Compass Advisory Program Managed Diversified Stock Income Plan
Wells Fargo Advisors Portfolio Management Quarterly Commentary Wells Fargo Compass Advisory Program Managed Diversified Stock Income Plan December 31, 2017 Kent Newcomb, CFA Co-Portfolio Manager Jack Spudich,
More informationPioneer Disciplined Growth Fund
Pioneer Disciplined Growth Fund COMMENTARY Performance Analysis & Commentary September 2018 Fund Ticker Symbols: PINDX (Class A); INYDX (Class Y) us.amundipioneer.com Third Quarter Review The Fund s Class
More informationGetting Smart About Beta
Getting Smart About Beta December 1, 2015 by Sponsored Content from Invesco Due to its simplicity, market-cap weighting has long been a popular means of calculating the value of market indexes. But as
More informationIt is a complicated world out there, part 2
It is a complicated world out there, part 2 By Sandy McIntyre Capital Markets Strategist, CI Investments August 15, 2018 Now that I am confused, what do I do? Part 1 of It s a complicated world out there
More informationWhy Dividends? Market Commentary January 2018
Why Dividends? Market Commentary January 2018 OVER THE YEARS, INVESTOR APPETITE FOR DIVIDENDS has waxed and waned. Historically, research in dividend investing has measured everything from performance
More informationMANAGED FUTURES INDEX
MANAGED FUTURES INDEX COMMENTARY + STRATEGY FACTS JANUARY 2018 CUMULATIVE PERFORMANCE ( SINCE JANUARY 2007* ) 120.00% 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% AMFERI BARCLAY BTOP50 CTA INDEX S&P 500 S&P
More informationThe Q2 Factor Winner? Small Cap.
The Q2 Factor Winner? Small Cap. July 23, 2018 by Nick Kalivas of Invesco As global risks grow, factor diversification may help investors stay prepared With fears of a trade war looming over global large-cap
More informationQuarterly Sector Update
LEADERSHIP SERIES FIRST QUARTER 2018 Quarterly Sector Update PRIMARY CONTRIBUTORS Fidelity Management & Research Company, Equity Division SECTOR UPDATE Scorecard: Technology Continued to Lead Q4 marked
More informationFIVE KEYS TO EMERGING MARKET OUTLOOK John Lynch Chief Investment Strategist, LPL Financial Jeffrey Buchbinder, CFA Equity Strategist, LPL Financial
LPL RESEARCH WEEKLY MARKET COMMENTARY KEY TAKEAWAYS We favor emerging market and U.S. equities for tactical asset allocations based primarily on our outlooks for global economic growth and earnings. We
More informationAn Economic Perspective on Dividends
2017 An Economic Perspective on Dividends Table of Contents Corporate Outlook... 1 2 Market Environment... 3 7 Payout Ratio... 8 9 Long-term View...10 12 Global View... 13 16 Active Management... 17 Risk
More informationReasons to Consider Dividend-Paying Stocks
Reasons to Consider Dividend-Paying Stocks By Fayez Sarofim & Co. May 2014 Reasons to Consider Dividend-Paying Stocks 1. Generate Income in a Low Yield Environment 2. Realize Potential for Dividends to
More informationAI: Weighted Sector Strategy DEC
KEN STERN & ASSOCIATES DEC 31 2016 1 Tactical Rebalanced AI: Strategy DEC 31 2016 Ken Stern & Associates Strategy seeks to track the investment results of the Morgan Stanley Capital International USA Investable
More informationQUARTERLY SUMMARY As of June 30, 2018 US Growth Stock SMA
QUARTERLY SUMMARY As of June 3, 8 US Growth Stock SMA PORTFOLIO MANAGER: Joseph B. Fath JOINED FIRM: INVESTMENT APPROACH Focus on companies with double-digit earnings and cash flow growth - emphasize sustainable
More informationRisk Concentrations in US Equity Markets
Risk Concentrations in US Equity Markets The current market environment in US equities has inspired us to publish this note. Even casual observers likely can t help noticing that a small group of companies
More informationPORTFOLIO DIAGNOSTICS REPORT. Myths, Misconceptions and Blind Spots Overcoming the Home Bias in Equity Investing. Labs: Portfolio Diagnostics Services
Labs: Portfolio Diagnostics Services PORTFOLIO DIAGNOSTICS REPORT Myths, Misconceptions and Blind Spots Overcoming the Home Bias in Equity Investing By Janus Henderson s Portfolio Construction Services
More informationFinding Strategic and Cyclical Exposure: Sector and Factor Investing. For financial professional use only. Do not distribute to the public.
Finding Strategic and Cyclical Exposure: Sector and Factor Investing For financial professional use only. Do not distribute to the public. 1 Housekeeping Ask Questions Polls Survey & Giveaway Complete
More informationEric 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 informationINVESTMENT IMPLICATIONS OF THE NEW TAX LAW: EQUITIES AT A GLANCE
LPL RESEARCH WEEKLY MARKET COMMENTARY January 2 2018 INVESTMENT IMPLICATIONS OF THE NEW TAX LAW: EQUITIES AT A GLANCE John Lynch Chief Investment Strategist, LPL Financial Barry Gilbert, PhD, CFA Asset
More informationQUARTERLY SUMMARY As of March 31, 2018 US Growth Stock SMA
QUARTERLY SUMMARY As of March 31, 18 US Growth Stock SMA INVESTMENT APPROACH Focus on companies with double-digit earnings and cash flow growth - emphasize sustainable growth, not momentum growth. Integrate
More informationInvestment opportunities: A look at the emerging markets consumer sector
Summer 2018 Investment opportunities: A look at the emerging markets consumer sector Bart Grenning Lead Portfolio Manager, Emerging Markets Equities Emerging markets (EM) equity sectors are as diverse
More informationThe Value of Dividends. Searching for Income in a Low-Rate Environment. The Value of Dividends. Highlights. Long-Term Total Return Driver
The Value of Dividends The Value of Dividends Searching for Income in a Low-Rate Environment Matt Oldroyd, CFA, American Century Investments Vice President, Client Portfolio Manager, Value Equities Highlights
More informationSmart Beta: Index Investing, Evolved
Franklin LibertyShares TM Topic Paper November 2017 Smart Beta: Index Investing, Evolved Global investing literally and figuratively is foreign to many US investors. That s why some have taken a passive
More informationThe Timely Case for Quality and Value Stocks
Click here to visit the Barrow Funds website When you click on link above, you are leaving the Barrow Street Advisors website BARROW STREET ADVISORS The Timely Case for Quality and Value Stocks December
More information20 YEARS FINANCIAL NEWS, 2016
We are proud to recognize Mercer Investment Consulting s Achievement as sub-advisor for Bluerock s Total Income+ Real Estate Fund INVESTMENT CONSULTANCY OF THE LAST 20 YEARS FINANCIAL NEWS, 2016 Providing
More informationTranslating Factors to International Markets
LEADERSHIP SERIES Translating Factors to International Markets Strategies that combine the potential diversification benefits of international exposure with the portfolio-enhancing benefits of factors
More informationSchroder Global Core Fund Wholesale Class. Overview. Performance to 30 June Fund characteristics as at 30 June Quarterly Report June 2018
Overview Fund objective To outperform the MSCI World ex Australia Index (net dividends reinvested) before fees across a broad range of market environments with limited index-relative risk. The Fund provides
More informationTHE VALUE FACTOR ISN'T DEAD, JUST MISAPPLIED
REPRINTED FROM POINT OF VIEW MAY 2018 THE VALUE FACTOR ISN'T DEAD, JUST MISAPPLIED CONTRARY TO POPULAR PERCEPTION, THE VALUE FACTOR HAS OUTPERFORMED OVER THE LAST DECADE. Investors are losing patience
More informationGlobal Technology TECHNOLOGY S GOLDEN ERA IS ONLY IN EARLY STAGES
PRICE POINT July 2018 In-depth analysis and insights to inform your decision-making. Global Technology TECHNOLOGY S GOLDEN ERA IS ONLY IN EARLY STAGES KEY POINTS We are relatively early in a golden age
More informationFundamentally weighted index strategies: A primer on asset allocation in three core asset classes
strategies: A primer on asset allocation in three core asset classes 1 2 3 Key takeaways strategies can serve as a complement to traditional cap-weighted index strategies. Combining fundamentally weighted
More information2 PROVEN RECORD OF 1 GLOBAL PORTFOLIO 3 HISTORY OF GLOBAL DIVIDEND FUND 28% 49% 51% 72%
BLACKROCK.COM/GD GLOBAL DIVIDEND FUND Investors are living longer and risk outliving their savings at a time when volatility is high and yields are low. In this new world of investing, a global portfolio
More informationETF PORTFOLIO ALLOCATION DYNAMICS. DELTASHARES SM MANAGED RISK ETFs
ETF PORTFOLIO ALLOCATION DYNAMICS DELTASHARES SM MANAGED RISK ETFs 1 DMRL DeltaShares SM S&P 500 Managed Risk ETF DMRM DeltaShares S&P 400 Managed Risk ETF DMRS DeltaShares S&P 600 Managed Risk ETF DMRI
More informationBALANCED FUND. 25 Years of Dynamic Asset Allocation. 4Q17 Asset Allocation. Overall Morningstar Rating TM
4Q17 Asset Allocation BALANCED FUND 25 Years of Dynamic Asset Allocation A: JDBAX C: JABCX I: JBALX N: JABNX R: JDBRX S: JABRX T: JABAX Overall Morningstar Rating TM Based on risk adjusted returns as of
More informationGrowth Investing. in Times of Market Volatility. White Paper
White Paper Growth Investing in Times of Market Volatility April 2018 Executive Summary Many investors may be dismayed by the volatile nature of high-flying growth stocks. While, by definition, growth
More informationAre We There Yet? # Days. Quantitative Investment Decisions 999 Vanderbilt Beach Road Suite 200 Naples, Florida
1 11 21 31 41 51 61 71 81 91 101 111 121 131 141 151 161 171 181 191 201 211 221 231 241 251 Are We There Yet? March lived up to expectations with a slightly negative Market return, -0.04%. The post-election
More informationSocial Security 4 th Annual Consumer Survey
NATIONWIDE RETIREMENT INSTITUTE Social Security 4 th Annual Consumer Survey September 2017 There s a need for greater Social Security understanding and education 91% 91% don t know what factors determine
More informationAdvisorShares. ETF Product Guide. alphabaskets.com
AdvisorShares ETF Product Guide 1.877.843.3831 www.advisorshares.com alphabaskets.com @advisorshares info@advisorshares.com advisorshares at a Glance Concentrated CWS AdvisorShares Focused ETF Concentrated
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 information20 YEARS CONSULTANCY OF THE LAST INVESTMENT. Mercer Investment Consulting s Achievement as sub-advisor for. We are proud to recognize
We are proud to recognize Mercer Investment Consulting s Achievement as sub-advisor for Bluerock s Income+ Real Estate Fund INVESTMENT CONSULTANCY OF THE LAST 20 YEARS FINANCIAL NEWS, 2016 Providing investors
More informationXtrackers MSCI ESG Leaders Equity ETFs
4Q.208 Xtrackers Xtrackers MSCI ESG Leaders Equity ETFs Seeking exposure to the highest ESG rated companies Best-in-class approach Indices target companies with the highest environmental, social, and governance
More information