The relationship between stocks and bonds seems to be changing. Higher rates are causing them to react similarly.
As the Greek debt drama reaches a boiling point, it’s more important than ever that investors choose diversification.
Without the 7.2 billion euro tranche of the bailout, which the Eurozone insists won’t be made available until conditions for structural reforms are met, Greece’s cash position looks dire.
There are several major points of contention related to the structural reforms. Money may change hands before they’re resolved.
If no resolution is reached soon, the Greek debt crisis might derail the European rally and cause a rise in volatility not just in Europe, but in global markets at large.
In this series, we’ll explore the latest developments in the 11th hour negotiations by the beleaguered nation and its creditors. Are your investments in Greece safe?
Diversification is important because a diversified portfolio has higher risk-adjusted returns than a portfolio exposed to only one security.
Materials, technology, and energy indices have the highest exposure to emerging markets, and utilities have the least.
If economic growth continues to disappoint, yields are likely to stay low. This means the quest for yield is well and truly on.
Without monetary accommodation, US equities are likely to be more volatile. Investors may choose to tile their portfolios in a different direction.
The outlook for growth in the US isn’t optimistic. Earnings are estimated to be flat to negative in 2Q15, which could drag the stock markets down.
Investors should focus on dividend growth equities (IYLD) for alternative sources of income. Dividend-paying stocks can act as a cushion in this low-yield world.
Many structural considerations are likely to keep yields low in the future. Demand for Treasuries and bonds is likely to be more than the supply in the next two years.
While investors shouldn’t abandon the United States, we believe they should be raising their allocation to international equity markets and look for opportunities abroad.
Market highs are not the same as market tops, and stocks reach new highs fairly often.
We’ll explore whether record highs signal a top for equity markets or whether there’s still some room for growth in the current bull market.
The toll of the dollar on the US tech sector has not been as heavy as extolled. This sector continues to display strength, especially mature companies, and investors need not fear an exogenous shock like the tech bubble burst of 2000.
Although the valuation multiples for the tech sector are higher than its historical averages, the prices are supported by robust earnings growth.
The primary reason for tech strength is the fact that most tech giants have effective currency hedging techniques in place.
Despite the currency headwinds plaguing the sector, technology has managed to register a revenue growth rate of 5.5%, second only to healthcare , among all the S&P 500 sectors.