Based on today’s relatively rich valuations, U.S. equity investors are likely to be disappointed after the next 10 years.
Historically, both equities and fixed income have performed solidly in the initial years of Fed tightening cycles.
Risk assets—particularly high-yield bonds and bank loans—are well positioned to enjoy a prosperous road ahead.
Behavioral finance reminds us that ignoring daily volatility roiling the market is wise. Instead, investors should focus on the positive, fundamental outlook for equities and fixed income.
The lead-up to the first rate hike by the Federal Reserve is historically a favorable environment for U.S. equities and credit.
The U.S. economy is strong relative to other countries, but its equity valuations mean less upside potential for long-term investors than other areas of the world.
If the mid-80s’ supply-driven oil crisis is a guide, we should expect further declines and a prolonged period where oil prices remain depressed.
Aggressive central bank accommodation from Europe to Japan and a dovish Federal Reserve bode well for equities and bond prices.
The recent selloff in U.S. stocks is healthy and could set markets up to reach new highs by year end. Long- term investors should not fall victim to panic and sell.
Investors should expect a quiet summer with markets rolling along, but with valuations becoming frothy now is a time to consider greater exposure to assets with higher credit quality.
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