We maintain a risk-on stance in U.S. equities, as the near-term risk of a recession remains low. Investors with a cautious outlook can take steps to improve outcomes at the end of the market cycle.
This year has provided a wake-up call to fixed income investors that, yes, interest rates can rise and they can rise quickly. While the sharp increase in Treasury yields dented total returns on diversified fixed income portfolios, we believe it will still be possible to earn good returns over the next few years.
The U.S. equity bull market is over nine years old, but continues to grind on thanks to stronger sales and the reduced corporate tax rate. While the rally is undoubtedly long in the tooth, we don’t expect it to die of old age.
Nine years into what may turn out to be the longest economic expansion in U.S. history, we are starting to see signs that a recession may finally be on its way. Interest rates are on the rise, and the U.S. Treasury yield curve is flatter. We see no reason to dramatically shift one’s investment approach at this stage, but we are beginning to make changes to our strategies to prepare for the end of the cycle.
The 2018 mid-term elections were one of the most highly-anticipated mid-terms in recent history. As we digest the results and understand the new landscape, here are some initial thoughts on the potential impacts to the markets.
Going into yesterday’s midterm elections, our base case scenario was that Democrats would take the House while Republicans would retain the Senate. That has come to fruition, and has had an initially supportive effect on markets, with US stocks and bonds supported and the dollar weaker.
From an economic and markets perspective, the election results probably matter less than many think. Rising federal debt and deficit levels will limit Washington’s ability to accomplish much over the next two years.
Investor angst over the sustainability of earnings growth and the impact of trade tensions has pummeled equity markets. The U.S. midterm elections and their aftermath represent another catalyst that should be on investors’ radar, we believe.
On the latest edition of Market Week in Review, Russell experts discussed the ongoing volatility in markets, the U.S. GDP growth rate for the third quarter and the European Central Bank (ECB)’s plans for ending quantitative easing.
The domestic equity markets fell sharply in October amidst high volatility, with big swings day to day, and in some cases, intraday. After leading the way up over the last six months, the growth indices led the way down in the reversal, driven by steep losses in the largest technology names, such as Amazon and Netflix, both down roughly 20%.
October’s market volatility showed us signs that we may be in the late stages of the current bull market. Help your clients keep their emotions in check and prepare for more market uncertainty with these six steps.
Read the newest Strategas Insights for insight on the upcoming elections, Fed policy, trade with China, and other key factors affecting the US economy in the near term.
Does the stock market still have more to give? Geopolitical concerns are undeniable. Many equity market valuations appear to be expensive. Despite those truths, our manager research team has found that equity managers are generally bullish.
Are you confident you are choosing the best managers for your clients? The data from this Envestat report may surprise you.
Despite recent volatility, the technology sector has meaningfully outperformed the market in 2018. Investors are now wondering whether the gains can continue. We discuss why technology stocks have the potential to withstand near-term volatility and deliver long-term returns.
Even though we all know market fluctuations are a normal part of equity investing, large market declines are scary to most investors because they often happen rapidly and feel random.
Using stories to simplify industry jargon and explain market conditions may help make your client meetings more engaging and more memorable.
Are you establishing the right relationships and Center of Influence (COI) partnerships as a way to help deliver a higher standard of service to your clients? These tactics may help.
Understanding the current—and potentially future—state of the global economy helps investors put market movements into context. To promote that understanding, researchers from Vanguard Investment Strategy Group examine the economic trends that affect the investing environment in this new series.
We have no idea what will happen today, very little notion of what next week holds, a slight inkling as to potential one-year returns but could take a pretty solid stab at 30 years from now.
Things have a tendency to get a little bit scary around this time of year — and I’m not just talking about the little ghosts, goblins and ghouls knocking on your door Halloween night. I’m talking about what happens to your wallet.
As you make your fall push before year-end, remind yourself and your team: It takes a strategic plan, training, persistence and grit to reach the finish line.
The key question on investors’ minds is: Is this over? Or will stocks lose more ground? Before we can gauge the likelihood of this sell-off continuing, we must understand its origins.
Perhaps more than any other sport, baseball is famous for statistical analysis, and there are seemingly endless ways to evaluate every player. Similarly, there are many ways to evaluate stocks, and different portfolio managers assemble their “teams” using a variety of methods.
Read the latest commentary from Envestnet and Strategas for insight on monetary policy, trade tensions, and other key factors affecting the US economy in the near term.
On the latest edition of Market Week in Review, Russell Investments discussed possible factors behind the recent sell-off in global equity markets and what the road ahead may look like for investors.
Recessions are usually triggered by events that are largely unpredictable in advance. A careful review of the evidence shows that the onset of the next recession cannot be predicted by how long the current expansion has lasted.
The U.S. Federal Reserve (the Fed) is settling into a quarterly tightening routine that could see the federal funds rate rise above 3%. Even so, the upside for the U.S. dollar looks limited given its expensive valuation and crowded long positions.
On Wednesday, US stocks fell dramatically, with the Dow Jones Industrial Average falling more than 800 points. The rout was led by technology stocks, with the NASDAQ Composite Index down 316 points, but all sectors experienced losses.
Should investors be overweight to both growth and value? Is it even possible? The stock market is at an interesting point today, currently enjoying one of its longest expansions on record. As history has all-too well demonstrated, though, the good times won’t last forever.
Climate change is big news—both bad and good—for long-term investors. The bad news? The longer your time horizon, the more climate change risk is compounding. The good news? In our view, effectively managing your exposure can add alpha and reduce risk in every asset class.
There is evidence that stock picking works in certain markets while not in others. Learn the relevant metrics and how paying attention to them could improve portfolio results.
The value of the U.S. dollar has climbed since April, and its rise has been one of the biggest drivers of asset performance in 2018. The stronger dollar is both a consequence of, and catalyst for, tighter financial conditions.
Social media isn’t just for the millennial crowd and for sharing beach pics. It’s a way to engage with clients, increase your brand awareness, and build your network.
Municipal bonds have historically appealed mainly to investors subject to U.S. federal and state income taxes. However, investors not subject to these taxes, such as non-U.S. investors, are showing increasing interest in the asset class.
The desire to structure and manage client portfolios is oftentimes part of the advisor's value proposition. Selecting investments and being responsible for those decisions can be a worthwhile endeavor. But how effective is it in the long run?
A new study suggests that earning wealth through the stock market may be better accomplished by focusing on slow and steady long-term growth, rather than chasing top-tier performance.
Checklists are excellent tools for delivering results and optimizing your team’s time. Stoplists are even better for providing focus and helping your team work smarter. Here’s our list of 10 things to stop doing.
Join Sophie Antal Gilbert, a Consulting Director at Russell Investments and Jon Eggins a Senior Portfolio Manager for Global Equities at Russell Investments, as they explore some of the potential benefits and challenges of international tax-smart investing.
In this episode of The Bid, Kate discusses how to build resilience into portfolios, why tech still has room to run and why she’s still a champion of emerging markets.
2.5 quintillion bytes of data are generated every day, but IBM estimates that 90% of this data has actually been created in just the past two years. Rich Mathieson discusses how big data is transforming the way we think about investing.
Parents — your kids may have headed back to school, but before you know it, they’ll be heading off to college. Fittingly, September is National College Savings Month, so let’s talk strategy.
Do investors take less risk as they age? Do millennial investors have a higher risk tolerance than the average investor overall? This research paper explores how various demographic groups view risk and how investors' experiences shape their risk tolerance.
Capital gain distributions are something that investors often don’t pay attention to until late in the fourth quarter. But several events are coming together to make the tracking and monitoring of capital gain distributions a year-round exercise.
The behavioral wealth advisor takes a holistic and proactive approach to wealth management, creating a behavioral discipline throughout the client service model. They increase client confidence and minimize behavioral biases while improving retention and acquisition.