Investors all over the world often prefer to stay in their home markets. But at what cost? Going global can open up a world of choice to help improve a portfolio’s equity risk and return profile.
The U.S. high yield bond market has grown substantially to around $1.3 trillion today. At the same time, the global high yield market has become more geographically diverse. North America’s share of the market has fallen from 87.1% in 2005 to 62.6% in 2016.
The Department of Transportation's Federal Highway Commission has released the latest report on Traffic Volume Trends, data through July. "Travel on all roads and streets changed by 0.8% (2.2 billion vehicle miles) for July 2017 as compared with July 2016." The less volatile 12-month moving average was up 0.13% month-over-month and 1.2% year-over-year. If we factor in population growth, the 12-month MA of the civilian population-adjusted data (age 16-and-over) is up just 0.05% month-over-month and up only 0.6% year-over-year.
The latest Conference Board Leading Economic Index (LEI) for August increased to 128.8 from 128.3 in July and is currently at another all-time high.
Going into today’s important Federal Reserve meeting (with a press conference and an update to the economic projections, aka the “dot plot,” along with the usual statement), we at PIMCO along with most market participants expected the Fed to announce formally the start of balance sheet reduction this fall, perhaps in October. And that’s exactly what the Federal Open Market Committee (FOMC) did.
The US stock market today looks a lot like it did at the peak before all 13 previous price collapses. That doesn't mean that a bear market is imminent, but it does amount to a stark warning against complacency.
Today's seasonally adjusted 259K new claims, down 23K from last week's revised 282K, was better than the Investing.com forecast of 300K. Hurricane Harvey and Irma impacted this week's claims.
My colleagues and I have been actively speaking about the evolution taking place in many emerging markets over the past few decades. We’ve seen dramatic shifts occurring, with the often one-dimensional economic models of the past giving way to new and diverse growth drivers.
The Federal Housing Finance Agency (FHFA) has released its U.S. House Price Index (HPI) for July. U.S. house prices were up 0.2 percent on a seasonally adjusted nominal basis from the previous month. Year-over-year the index is up 6.2% (nonseasonally adjusted). Seasonally adjusted, the index is up 5.20% year-over-year.
Value investing is very similar to farming. A farmer needs fertile ground, well-planted seeds, unshakable patience, loads of sunshine, watering and weeding, as well as a great deal of courage and faith to succeed in the long run. Today, we believe that investors need to reexamine the benefits of a value investing approach toward the end of an era which has rewarded growth stock investing.