Disappointing returns for healthcare stocks through the market’s recovery from the pandemic have raised concerns about the sector.
With the US economy accelerating and price pressures rising, investors have started wondering when the Federal Reserve will start to wind down, or taper, its current QE asset purchases—a pillar of accommodative monetary policy since the global financial crisis.
Passive equity portfolios continue to gain popularity, but some investors might not know that a small group of outperforming stocks have driven most of the gains in recent years.
We’re optimistic that environmental, social and governance (ESG)-linked bonds will help create a better, more sustainable world.
Municipal bonds have held up well this year, despite rising interest rates and inflation. Munis’ long-term outlook is strong too. What accounts for their outperformance in today’s environment?
Widespread lockdowns have resulted in record output declines and soaring debt across the euro area. But the political response to the COVID-19 crisis may be positive for the European integration project—and for euro-area bond markets.
Global indicators continue to signal a sharp business recovery from last year’s COVID-19 pandemic lows. While inflation expectations are increasing as a result, business improvements offer multi-asset investors good reasons to remain tilted to equities for the next stage of the recovery.
Retirement planning has evolved from a singular focus on savings to ensuring that account values provide income for life. Multiple generations of DC plan participants are concerned that they’ll outlive their retirement savings, and they’re turning to plan sponsors for solutions.
After a strong rally for value stocks in recent months, some investors are wondering if the rebound will continue.
As the US economy continues to reopen, economic growth is accelerating in line with our above-consensus forecasts.
Developed-market (DM) household savings recorded a significant gain last year, with an increase equivalent to 10% of combined gross domestic product (GDP).
Paradigm shifts are driven by creativity and innovation. Innovation is attracted to and stimulated by inefficiencies in a big, lucrative marketplace, such as financial services. Recently, our industry has seen a growing number of innovations in how financial-services products are delivered to consumers.
Many US technology companies use stock compensation to help align workers’ performance with shareholder interests.
US small-cap value stocks have enjoyed considerable success since value stocks began to outperform growth in October 2020.
Investors are reassessing which types of companies will thrive in the next stage of the recovery amid the recent rebound of value stocks.
Planning for retirement has historically been focused on saving as much as possible.
Global stocks rose in the first quarter, but volatile trading patterns reminded investors that the road to normal will be bumpy.
Today’s market environment taps into bond investors’ primal fears.
As US inflation expectations grow, many investors are concerned about the potential impact on stocks.
Across the industrial sector, low-carbon investing naturally leans toward renewable energy opportunities, like wind and solar power.
Companies globally are racing to reduce their carbon emissions. But what does it really take to achieve ambitious green targets?
Our brains have a set of built-in shortcuts that influence us every day.
It’s been a long time since investors have had to worry about inflation.
US core inflation likely will be volatile during 2021, as underlying economic forces continue to rebalance from the pandemic.
Our crisis dashboard includes signals from three areas: 1) public health, 2) the consumer sector and 3) financial markets. By pulling big data from traditional sources (earnings growth and gross domestic product, for example) and nontraditional sources (like Google Trends and Glassdoor), we can create a better mosaic of the road back.
The exit from the pandemic will be bumpy. Defensive stocks with attractive valuations can help provide balance through an uncertain recovery.
The recent selloff of US growth market darlings reflects increasing questions about whether their growth potential still justifies exceptionally high valuations. Away from the froth, growth investors can still find solid return potential in quality companies with profitable, sustainable business models.
As more plan participants worry about retirement income security, demand for guaranteed income solutions is growing—and plan sponsors are pondering the options.
Italy’s new prime minister, Mario Draghi, has a well-earned reputation for turning around difficult situations. But can he reverse Italy’s relative economic decline? And what does his program mean for Italian bond yields?
Hydrogen’s potential as an energy source is attracting renewed attention. It may take 20 years or so for the potential to be realized. But the effects are likely to be felt within the planning horizons of most long-term investors—a good reason to start thinking now about the investment implications.
The energy sector is beginning to adapt to the realities of climate change. Who is best positioned for the future?
As COVID-19 vaccines roll out and resrictions lift, a US economic rebound could lead to tighter Federal Reserve policy and higher yields. Municipal bond investors may worry about how rising yields could hurt their portfolios.
We expect US core inflation to surge in the months ahead, as comparisons to low price levels of a year ago cause sizable fluctuations. Ultimately, supply should respond to recovering demand, bringing inflation down and facilitating easy Fed policy.
Despite questions over financing the European Union’s (EU’s) new Green Deal, the green transition is now under way.
Investors have parked record piles of cash on the sidelines amid concerns about valuations and volatility. But short-term safety comes at a price. By defining long-term goals, investors can put idle cash to work despite uncertainty about the path to recovery.
Having strongly underperformed the wider stock market in 2020, high-dividend stocks have shown early signs of a rebound in recent weeks.
The pandemic has accelerated an evolution in bond trading, and it is already making a difference for investors—if bond managers have embraced tech-enabled trading.
The GameStop drama that has rattled US stocks reflects the growing power of individual investors to shape market events. But there are lessons for traditional, long-term investors, too. When markets ignore fundamentals, redoubling a focus on quality is the best way to produce consistent returns while reducing volatility.
The probability of more fiscal relief from Congress has risen—good news for the US economy and a boost to our growth forecast. While risks remain, and it’s too early to talk about the pandemic in the past tense, we’re optimistic the economy can return to more normal footing soon.
As inflows to sustainable equities break new records, here’s what investors should look for to identify portfolios that align with their responsible investing goals.
It may seem shocking, but a simple trip to the local store to pick up fresh produce or clothing could enable human exploitation. For investors, those same connections can exist within their portfolios—and it takes more than a passive effort to root them out.
As China begins the year of the Ox, many investors are wondering whether another bull run is possible in 2021. Given that last year’s rally was extremely narrow, we believe many parts of the market still offer pent-up recovery potential.
For European banks’ stockholders, 2020 was a year to forget. But bank bondholders enjoyed positive returns and may overcome COVID-19 challenges again in 2021, backed by solid balance sheets and supportive regulatory conditions.
Global stocks rebounded sharply from the coronavirus market crash in 2020, but the ride was rocky. With so many risks clouding the outlook, we believe that investors should focus on generating a smoother pattern of returns through the recovery from COVID-19.
Emerging-market stocks rebounded in 2020 even as the COVID-19 pandemic spread globally. As vaccines and other favorable conditions unfold, investors have good reasons to consider EM equities in 2021 while strategically considering their potential risks.
Municipal bond issuers’ financial health and resiliency—which helped in 2020—should support opportunities for active muni investors in 2021.
Small-cap US stocks rebounded sharply in the fourth quarter. Yet the recovery may still be in its early stages—particularly for smaller-cap value stocks—as pandemic risks recede and earnings drivers kick in during 2021.
Credit markets have staged an epic rebound from the depths of March 2020. But in a low-growth, low-yield world, we believe there may be more room to run in 2021.
Now’s the time to put the challenges of 2020 behind us and start the new year with a fresh perspective. While we can’t predict the future, we can break away from old behaviors and be intentional about our choices in the new year.
Emerging-market sovereign debt has rebounded sharply off the lows, but this hard-hit sector offers attractive yields and compelling growth opportunities to discerning investors.
