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Short-term tactical outlook

Market Outlook Nov 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

Equities

Fixed income

Alternatives

Cash

Key Takeaways

  • Duration-sensitive fixed-income assets are underweight. Higher short-term rates are making shorter duration investments more attractive.
  • October’s equity market correction has created a tactical opportunity. We’re experiencing a favorable equity environment on a number of fronts: strong economic growth, a corporate-friendly regulatory environment and positive earnings reports.
  • We still prefer U.S. equities over international equities. Trade tensions, stronger earnings growth in the U.S. than abroad and a more favorable economic environment in the U.S. are all trends that continue to support U.S. equities.

Within equities

 

Within fixed income

 

Within alternatives

 

 

Disclosures

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.