Many investors think US stocks are due for a correction: They feel that the market has run too far, that the Fed has been slow to act, that complacency has created pockets of excess. Do these gut feelings mean a major equity correction looms? Not yet, in our view.
Though they’ve defied expectations this year, higher interest rates appear to be all but inevitable. Investors need to take measure of the rate sensitivity in their portfolios—and stay agile—to negotiate the rough market crosscurrents a rate reversal may bring.
It’s been a very strong earnings season for US companies. But for many, it’s becoming much more challenging to expand profit margins. In a tougher environment, we think investors should focus more closely on revenue growth to find stocks that can thrive. (more…)
Katsuaki Ogata (pictured) and Takuji Oya
Japanese prime minister Shinzo Abe’s latest blueprint for sustained long-term economic growth was met with quite a bit of skepticism. It’s easy to play down the so-called Third Arrow as an assortment of cryptic reform measures. But we believe that there’s some substance that warrants equity investors’ attention. (more…)
Joseph G. Paul (pictured) and Greg Powell
In a world of ultralow interest rates, the quest for income has left many investors stumped. Bonds are generally seen as more dependable sources of income than stocks. But our analysis suggests that income streams from equities are much more stable than widely believed. (more…)
Chris Marx (pictured) and Kent Hargis
With markets so calm, it’s easy to become complacent about the corrosive effects that volatility can have on long-term investment success. If you don’t need the money for a long time, you can ride out the inevitable market squalls. But if you’re close to or already drawing from those funds, volatility can be costly. (more…)
The pace of innovation is accelerating and equity investors are increasingly at risk of getting left behind. We think that moving away from the benchmark can help portfolios keep up with rapid change across many industries. (more…)
The US stock market is at record highs, and warnings of a downturn are loud and shrill on every side. Even if you’re convinced you should own more stock, you may find it difficult to buy now. What if you invest your money and the market suddenly drops?
It’s a truism that what goes up, must come down—but when, and by how much? That matters, especially if you’re talking about the US stock market. (more…)
It’s often hard to resist the temptation of an inexpensive, passive equity allocation. But we think you can find plenty of good reasons to go active just by looking around the markets today. (more…)