At a time when equity valuations are at historic highs, increasing exposure means increasing risk. We believe there are better approaches that may help deliver a portfolio's required returns.
Invesco Fixed Income’s macro factor framework provides an understanding of how developments in growth, inflation and financial conditions globally are likely to impact markets.
Beware the consequences of assuming that elevated CAPE ratios are here to stay, but if they are the "new normal," low future returns are likely to be the "new normal" as well.
Has the stock market gotten too expensive? Overall, we would say it hasn't. But we do feel some sectors are better positioned than others.
Part 3 Building Portfolios: Diversification without the Heartburn The wisdom of diversifying investor portfolios across a wide range of asset classes is indisputable. But diversifying client portfolios beyond mainstream stocks and bonds comes with challenges, starting with clients’ unfamiliarity with diversifying asset classes and a propensity for clients to regret diversifying when results disappoint.
See the numbers behind the debate.
Momentum is one of the most compelling factors in theoretical long–short paper portfolios, but live results of momentum strategies fall short of theoretical returns. Thoughtful implementation, a careful sell discipline, and an avoidance of stocks with stale momentum can narrow the gap between paper and live results.
Combining both approaches may improve your investment strategy.
Throughout history banks have been at the epicenter of every financial crisis. That notoriety of failure led to the formation of Central Banks. In the wake of the 2008 financial crisis, global banks have repaired and strengthened their balance sheets, especially in the U.S.
Harvard University’s endowment has transitioned from a portfolio of asset class sleeves to a generalist investment model—an approach we see clearly as multi-asset. At Russell Investments, we made the same move eight years ago—and are proud of the single, globally integrated investment team we have today.