Student of the Market by BlackRock
December 2022 highlights:
- Largest value outperformance since 2001
Value is currently experiencing the highest 1-year outperformance versus growth since 2001, but only 45% of all assets across both are in value funds right now. -
Bonds have not lost money 3 years in a row
When factoring in last year, 2022 will be the second straight year that bonds lost money, but they have never had that happen 3 years in a row. - Going against the crowd in municipal bonds
Quarterly periods of large outflows from municipal bonds funds have been an indicator of above-average performance over the next 12 months, historically.
Sleeping at Night? Consider Adding an Absolute Return Strategy
Perhaps the most concerning issue for multi-asset investors as we turn to 2023 is diversification—or the lack thereof in recent times. And while this is not the first time that the “traditional” correlation between U.S. Treasuries and equity markets has broken down—people tend to pay less attention when both are producing positive returns—it has been one of the worst years on record for the total return of a 60/40 portfolio in 2022.Herein lies the merits of discussing an absolute return approach with clients.
Global Convictions: January 2023 Asset Class Research
Heading into 2023, bearish sentiment among investors is coming off a very low base, with some of the worst recorded data since tracking started 35 years ago. With a contrarian lens, this could be a positive. However, while the overall valuation landscape has undoubtedly improved, there are many assets which remain around fair value. In such an environment, we continue to balance opportunities against risks.
PMC Weekly Market Brief - February 6, 2023
PMC Weekly Market Brief - February 6, 2023