Today’s risks are clear: stock valuations are high, credit spreads are tight and interest rates remain low. A modest tilt toward return-seeking assets still makes sense. But investors should also be willing to look beyond traditional stocks and bonds.
For investors in search of a way to boost income and diversify their bond portfolios, now may be the time to consider what local-currency emerging-market bonds offer.
We project solid global economic growth into 2018. The US should continue to raise rates gradually, while tapering of asset purchases moves onto the European Central Bank's agenda in the second half of this year.
After weathering the global financial crisis and an era of heavy regulation, the US banking sector has gotten what looks to be a clean bill of health. We think this opens a lot of possibilities for equity investors.
One of the biggest challenges for bond investors today is keeping income flowing without taking too much risk. We think a balanced barbell approach can help.
Illinois’s fiscal woes, shaped by years of political gridlock, culminated in a rating downgrade to BBB– on June 1. A downgrade to junk is possible. But Illinois could recover its footing, should legislators muster the political will to work together. We know it can be done, because of California’s example.
Economic insecurity, social insecurity and political ineffectiveness: these developments have fed a resurgence of populist policies in many regions of the world. We think there’s potential for major impacts on global capital markets.
It’s been a really good year for equities so far. Paradoxically, this is sowing the seeds of anxiety. Valuations are higher, so people are worried about a correction. Subdued volatility has stoked fears of renewed turbulence.
US growth stocks surged in the first half of 2017, fueled by mega-cap technology companies. Active managers of growth portfolios have done especially well, reinforcing the case for stock-picking strategies.
Disruptive forces are wreaking havoc across the global business world. But not all disruption is fatal. Lots of companies are facing the threat—and thriving. We think they deserve more credit than investors are giving them.