Fidelity's Asset Allocation Research Team (AART) examines major themes in global financial markets and presents its investment outlook in this quarterly market update.
It has been a difficult year for major tech companies. To demonstrate, consider what the news and polling firm Morning Consult wrote in June 2017: Google and Facebook “are enjoying high favorability ratings among U.S. consumers …”
Despite some volatility at the start of the month, October turned out to be a rather steady ride for stocks as the S&P 500 Index put in a new all-time high.
Stocks gained on new U.S. jobs, while Chinese exports and imports may show little progress.
The Federal Reserve last week lowered rates for the third time over the past year. Interestingly, Chairman Jerome Powell said the Fed thinks interest rates are in a good place at the moment, telling investors that it may be time for a pause. We think this is a mistake by the Fed. Head of Fixed Income Colin Robertson explains.
Every year, Northern Trust’s Capital Market Assumptions Working Group develops forward-looking, historically aware forecasts for global economic activity and financial market returns — which drive our five-year asset class return expectations and inform our asset allocation decisions. All of this comes together in the form of our long-term strategic asset class allocation suggestions, which are used by institutional and individual investors worldwide.
Equities finished higher for the fourth straight week, with the S&P 500 Index up 1.5% and most U.S. averages setting record highs. The biggest tailwinds included the de-escalation of U.S./China trade tensions, Fed accommodation, and earnings results that have not been as bad as expected. Health care, technology and industrials were the best-performing sectors for the week, while REITs, energy and consumer staples were the weakest.
AAM Viewpoints – Is There a Dividend Sweet Spot? Part Two: Large, Mid & Small-Capitalization Securities
In August I released an article titled “Is There a Dividend Sweet Spot?” The research in that article was intended to help investors in their pursuit of dividend-paying equities.
Truth be told, we are not certain “uninvert” is even a word. A Google search for uninvert led us to the website Wiktionary and the definition in our headline above, while a search on the Merriam-Webster website informed us uninvert was not to be found in the world’s most famous dictionary.
Global central banks have delivered an unusual late-cycle dovish pivot this year – to extend an already-long economic expansion. The Fed’s rate cut last week was the latest installment of this dovish push.
U.S. Treasury yields declined last week, led by longer maturities.1 The Federal Reserve (Fed) cut interest rates by 25 basis points (bps), and the 30-year Treasury yield dropped by more than 15 bps in the following days.
Last Friday, October 25, was a big day for bitcoin, rallying as high as 42% and closing out the day up almost 30%. This was the third-largest, single-day run-up in bitcoin’s history! The strong price appreciation came on the back of comments from Xi Jinping, president of the People’s Republic of China, on the potential of blockchain technology, stating that China needs to “seize the opportunity… and accelerate the development of blockchain technology…”1