Investors remain concerned as they weigh four key developments. To help navigate the current volatility, Morningstar Investment Management provides perspective on the major asset classes.
Every investor, even the professionals, invest for one primary reason: to meet individual financial goals. From our vantage point, better yields across fixed-income and lower-valuation multiples within equities make markets more attractive today than they were a year ago. Here’s our take on the market
Stocks and bonds have had a tough start to 2022, falling together at the same time. This is one of the most uncomfortable market scenarios, but the silver lining is that it has created opportunity. Here's our take.
Given the overarching questions about capitalism and political freedom, many are rightfully fearful about the uncertainty ahead. The key is to understand what we can control and position ourselves in assets that give you the highest likelihood of reaching your goals. We seek a steady journey but must expect modest setbacks, which sow the seeds for the future.
It appears that FOMO has been reduced to one letter, F. Fear surrounds inflation, rising interest rates, and the potential for a recession —all of which have spooked the equity markets. We believe the long-term financial potential of owning a portfolio of high-quality businesses can far outweigh the more challenging periods.
To support client conversations on the challenging investment environment, we provide slides to help offer perspective on volatility, global challenges, and more.
Our principles: stay true to the process; recognize uncertainty for what it is; remain focused on fundamentals; and utilize periods of uncertainty to consider implications for portfolio positioning.
Mounting tensions between Russia and Ukraine resulted in a Russian invasion into Ukraine sovereign territory in February. We continue to monitor events and their impact on asset classes closely. As our conditions and our views evolve, we offer our perspective on the market’s response.
Fears of the dreaded “triple R” are growing—encompassing a recession, rising rates, and a loss in real household incomes. It is a dangerous time for investors, especially for those that draw a straight line from economic events to portfolio changes. We must be intentional and focused on our goals, including understanding what was already priced in and managing any risks to our convictions.
The rapid escalation between Russia and Ukraine has dramatically shifted investor sentiment. We are witnessing a meaningful setback in key financial markets, prompting volatility and negative speculation. This is normal amid uncertainty, but it is worth stepping back to understand the fundamentals of the situation.
Volatility, the rise and fall of prices, is inevitable. We aim to judiciously compound returns and avoid permanent capital impairment. We don’t predict. We invest.
Technological innovation in the financial services industry has helped make investing more attainable for U.S. households, allowing for broader ownership of individual stocks, mutual funds, ETFs, and a variety of other financial products. However...