Long-term investors should look beyond stock market volatility
Market volatility can be unsettling, but history shows that prices have returned to less volatile patterns over time. That can be good news for long-term investors.
Review regular updates and insight from our investment management team. Market Perspectives cover broader issues, including the global economy, market environment or sector overviews. Portfolio Perspectives offer analysis from a portfolio manager or team on a specific fund.
China’s aggressive tech ambitions and the ongoing trade war present challenges, but may create opportunities for long-term investors. Our team discussed navigating the current global technology environment amid the uncertainty.
Many investors have been reluctant to invest in emerging market equities because of concerns about volatility. We believe the fundamentals argue in favor of a strategic allocation.
Volatility has been the story of 2019. While we believe market headwinds will keeping global economic growth relatively weak for the rest of the year, signs of stabilization could appear in the next few months.
The Business Roundtable recently updated its view on the “Purpose of a Corporation” and the reactions were immediate. Is it the end of capitalism? Just lip service to support entrenched management teams? Our team analyzed the potential impact on business, industry analysis and corporate governance.
While the small-cap category recently has underperformed, we believe our process for identifying innovators among the universe of small-cap companies, particularly in the information technology and health care sectors, can create long-term investment opportunities.
August has been a highly volatile period for the financial markets. Reignited trade tensions and recent yield-curve inversions have spooked investors, culminating in a 3% drop in the S&P 500 Index on Aug. 14, its worst day of the year.
The Fed announced a much-anticipated one-quarter-percentage-point cut to the federal funds rate. Following the decision, Fed Chairman Powell's press conference commentary was perceived as unexpectedly hawkish. While the market had a 'buy the rumor, sell the news’ reaction, but we believe underlying fundamentals should support continued growth during the rest of 2019.
Economic fundamentals were solid at the start of the year. Could trade disruptions put the economic expansion at risk in the second half of 2019?
While trade tension and government investigations may create unknowns, the secular drivers of technology and health care are diverse and growing. We believe we are at a unique crossroads as innovation in science and technology converge at an unprecedented pace, which is creating new investable opportunities.
We have shifted the portfolio slightly more defensive, while maintaining exposure to areas we believe should participate in market upside.
Fear of recession has depressed valuations of many economically sensitive businesses. Contrary to popular belief, this may be an opportune time to invest.
The risks of a prolonged U.S.-China trade standoff have increased, but we believe long-term fundamentals in emerging markets will offer opportunities.