Not only is baseball a fun past time – it also has educational value when it comes to deciphering U.S. versus Non-U.S. performance patterns.
Following the strongest U.S. equity market start to the year since 1997, Russell’s global strategist team has updated their outlook for the remainder of 2013. They remain positive, but expect gains will likely be limited by a mature earnings cycle, reasonably full valuations and moderate economic growth. In their view, Europe will likely remain a source of volatility.
The strong U.S. equity market rally in the first quarter of 2013 has some investors worried about a market pullback. In our opinion, this concern is a relatively unnecessary distraction for well-diversified investors.
The future is impossible to predict and history doesn’t repeat itself. But, the newly-launched Asset Class Dashboard, which contrasts the current and historical returns for a sample of asset classes (represented by relevant indexes), can help you and your clients contextualize the current return environment.
When portfolio diversification is at its best, there will always be parts of the portfolio that are lagging while others are excelling.
According to our most recent Financial Professional Outlook survey, advisors report that many of their clients think the equity markets are scary. So scary, in fact, that 60% of respondents said clients are looking to reduce exposure to risk assets. But is this really a safer approach to fund future investment goals?
If only weighing the relative merits of investing in national versus state-specific municipal bonds could be as simple as “want a lower tax bill? Invest locally.” Instead, evaluating things like required yield, cost savings and life diversification are among the keys to making an informed investment decision about municipal bonds.