The Bank of England recently raised short-term interest rates, as developed-market central banks continue with what we expect to be a gradual withdrawal of monetary stimulus. Can the global economy maintain its steady growth? What factors could impact our forecast?
This is the first week of a weekly poll series we will launch on our site. It takes one minute and once you submit your response you'll be taken to a page where you can see the results. Continue the conversation on the results page about why you chose your answer by clicking on "COMMENT ON" APViewpoint link.
Poll question: Which type of "smart-beta" investing will yield the best long-term results?
A review of last month’s market-moving events across countries and asset classes
The lack of wage growth in the U.S. labor market has been a frequent topic during our global multi-asset investment calls. Typically at this point in the economic cycle (mid-to-late cycle), wages are growing at a 4%+ pace. However, wage growth has been very modest over the past few years (2%-3% growth), puzzling many investors and frustrating many workers who have expected larger increases.
Even though they may not know it, many global consumers have at least one loan tied to the London Interbank Offered Rate (LIBOR). Yet, LIBOR’s regulator is calling for an end to the rate by the end of 2021.
Value investing is under attack. The US equity market is at its most expensive level in history and has spent most of the past six years in the top quintile of expensive. In addition, value equities have underperformed the broad market and more widely growth equities for over ten years.
We recently met with Geopolitical Strategist Peter Zeihan to discuss three geopolitical shifts for US financial advisors to watch in the coming months.
The stock market continued to hit new highs through the third quarter, confounding those who focused on the rapidly changing headlines in the U.S. and throughout the world.
Nearly 10 years after its unprecedented response to the 2008 crisis, the Fed is finally making plans to unwind $4 trillion of fixed income investments. Other global central banks are not far behind. From interest rates to credit spreads and defaults, the impact of these actions will reach all corners of the fixed income market. Matt Toms Fixed Income CIO for Voya Investment Management will discuss: • Pitfalls and risks in the current fixed income market; • Overlooked opportunities; and • What investors should consider when building fixed income portfolios to navigate this uncharted environment.
Matt will answer attendees’ questions during the session and will be available to continue the discussion on APViewpoint.