After two consecutive months of market tumult and negative returns, the S&P 500 in April exhibited greater calm and eked out a positive return. Volatility was lower in April than it was in March and closer to its five year average across each of the major segments of the global equity market. Unlike 2017, markets in post-January 2018 have been much less decisive. The ongoing divergence of supply and demand factors in the bond market is creating mounting upward pressure on interest rates.
The first quarter of 2018 was plagued by volatility in equity markets. How did active managers fare in light of this?
A review of bonds, domestic equities, and international equities at the four-month mark of 2018.
The breakout of U.S Dollar may cause headwind for global equities.
To address questions about the benefits of international investing and diversification, we don’t have to look too far back in time.
Markets began the year as they had been over much of 2017, but changed their tone over the quarter—volatility reemerged, interest rates rose, the dollar fell, and equity markets retreated.
While U.S. equity valuations clearly are at historically high levels, is the outlook as bleak as it seems? Perhaps not. Let’s see why that is the case.
In biblical tradition, the four horsemen of the apocalypse are a quartet of immensely powerful entities personifying the four prime concepts – war, famine, pestilence and death – that drive the apocalypse. For today’s investors, the equivalent is historically high equity valuations, historically low bond yields, increasing longevity and, as a result, the increasing need for what can be very expensive long-term care.
Monday’s monster stock selloff is exhibit A for why I frequently recommend a 10 percent weighting in gold, with 5 percent in bullion and jewelry, the other 5 percent in high-quality gold stocks, mutual funds and ETFs.
This article describes three major methods of investing in international equity markets. They include bottom-up stock picking, “hybrid” stock picking and investing in funds or ETFs that closely follow broad-based international indices. The article also describes the fourth, alternative, method of international equity investing: construction of portfolios from single-country equity ETFs.