But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
Why there was no single catalyst for last week’s stock rally
I think stocks can make further gains, and would continue to favor Japanese equities while adopting a more positive stance on U.S. consumer stocks.
However, even though income growth is likely to remain lackluster, consumer spending could well be boosted going forward by lower energy prices and the recent drop in interest rates, which has pushed 30-year mortgage rates back down to 4%.
Indeed, a combination of sluggish income growth, below-trend spending and high valuations has resulted in significant under-performance: The sector is down year-to-date versus a 6% gain for the S&P 500.
What a difference a week makes. After a significant sell-off the week before, stocks staged a strong rebound last week. Now, with a seeming shift in sentiment, where do we see value in the market as we look ahead?
While the Fed has been busy in recent years with the modern equivalent of a printing press, the newly created money has been mostly sitting on bank balance sheets.
Within the United States, I recognize opportunities, particularly in large cap, cyclical names. On the fixed income side, high yield now represents an attractive option given recent spread widening.
What does this recent bout of volatility tell us about the economy and financial markets? Volatility is returning to its long-term average. First, to a large extent, the recent rise in…
Russ explains why the recent elevation in market volatility is normal and shares his four key takeaways from this changed investment climate.
Favor large- and mega-cap stocks. These market segments have held up better than their small- and mid-cap counterparts in the last few weeks, providing a bit of cushion from the volatility.
As for what this all means for investors going forward, while investor sentiment has clearly shifted, economic fundamentals remain relatively stable.
Russ provides the key facts about the global economy investors need to know now, and he shares the outlook for equity markets.
Diversification: Finally, companies in frontier markets tend to just focus on demand in their local countries and thus are less tied to the global economy than emerging markets like China…
As I’ve been warning for some time, this period of unusually quiet markets is coming to an end. Investors should expect elevated volatility going forward.
Are equities experiencing an overdue correction or the start of a bear market? That’s what many investors are wondering after U.S. stocks recently posted their worst three-day streak since 2011. Russ weighs in.
Since 2010, stock market risk – measured using the volatility of daily returns – was roughly equal in and outside the United States. Recently, that has changed.
After last week’s sell-off, many investors are worried that another global recession could be on the horizon. Russ provides his take.
The CPI and PCE are both important indicators of U.S. inflation. CPI is more important from an individual perspective, while PCE is more important for monetary policy.
Finally, it’s worth considering incorporating non-traditional, or alternative, strategies into your investing arsenal. With such investments, you can potentially enhance diversification and amplify your portfolio’s growth potential.
U.S. stocks are no longer cheap, and that has stocks outside U.S. borders looking even more reasonable. Specifically, I see opportunities in Japan.
Now that the fourth quarter is here, it’s time to assess your investment portfolio before 2014 draws to a close. Russ provides five investing to-dos to consider.