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Short-term tactical outlook

Market Outlook Jul 2017

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

Equities remain neutral.

Fixed income

Fixed income remains neutral.

Alternatives

Alternatives remain moderately overweight.

Cash

Cash remains moderately underweight.

Key Takeaways

  • At the halfway point of 2017, the S&P 500 Index has already met our full-year projections for growth. Overall volatility remains historically low.
  • Future return potential seems asymmetric; there may be a greater likelihood of negative returns than positive returns. Catalysts for concern include the unwinding of quantitative easing by central banks and the weakening of commodity prices.
  • Our aggressiveness remains neutral overall, but barely. We are preparing to decrease risk.

Within equities

Within equities

Within fixed income

Within alternatives

Within alternatives

Currency

Currency

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Jeffrey L. Knight

Global Head of Investment Solutions and Co-Head of Global Asset Allocation

Jeff Knight leads the Global Asset Allocation Team, a dedicated group of investment professionals who manage asset allocation portfolios. The team evaluates economic conditions, market opportunities and risks across the global landscape to determine asset allocation views.

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.

Diversification does not assure a profit or protect against loss.