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Short-term tactical outlook

Market Outlook Jul 2018

A snapshot of current views on equity, fixed-income and alternative asset classes — updated monthly to help you tactically adjust for opportunities and risks.

Overall positions


Fixed income



Key Takeaways

  • Tariff discussions have caused a slight increase in market volatility. But we believe the positive forces in the market still outweigh this potential challenge for risk assets.
  • We’re maintaining a moderate overweight to equities. Economic data continues to be resilient with strong growth and sustained earnings momentum.
  • Yield-curve inversion is a risk to watch. If the flattening U.S. yield curve persists, we could see it invert. This is important to monitor given the association between an inverted yield curve and an economic recession.

Within equities


Within fixed income


Within alternatives





Alternative investments involve substantial risks and are more volatile than traditional investments, making them more suitable for investors with an above-average tolerance for risk. Foreign investments subject the fund to risks, including political, economic, market, social and others within a particular country, as well as to currency instabilities and less stringent financial and accounting standards generally applicable to U.S. issuers. There are risks associated with fixed-income investments, including credit risk, interest rate risk, and prepayment and extension risk. In general, bond prices rise when interest rates fall and vice versa. This effect is usually more pronounced for longer term securities.

Diversification does not assure a profit or protect against loss.