Midyear Update: May Showers Bring June Flowers

Douglas Coté

We unabashedly tout our 2019 theme, “The Storm before the Calm,” as it accurately unfolded in the markets in the first half. The storm in December was followed by a calm from January through April, which sent markets to near record highs.

  • In the first half of 2019 our market theme, “The Storm before the Calm,” has unfolded as we predicted
  • We originally anticipated a rising rate environment, however, this outlook has changed and is allowing for a rebound in fundamentals
  • Markets have been soaring, with the S&P 500 posting its best half-year gain since 1997
  • Corporate earnings may be the best indicator to follow as they continue to beat all-time highs
  • An apt metaphor for investors may be to take advantage of the blowing wind and go “full sail”

Diversification does not guarantee a profit or ensure against loss

This commentary has been prepared by Voya Investment Management for informational purposes. Nothing contained herein should be construed as (i) an offer to sell or solicitation of an offer to buy any security or (ii) a recommendation as to the advisability of investing in, purchasing or selling any security. Any opinions expressed herein reflect our judgment and are subject to change. Certain of the statements contained herein are statements of future expectations and other forward-looking statements that are based on management’s current views and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Actual results, performance or events may differ materially from those in such statements due to, without limitation, (1) general economic conditions, (2) performance of financial markets, (3) interest rate levels, (4) increasing levels of loan defaults (5) changes in laws and regulations and (6) changes in the policies of governments and/or regulatory authorities.

The opinions, views and information expressed in this commentary regarding holdings are subject to change without notice. The information provided regarding holdings is not a recommendation to buy or sell any security. Fund holdings are fluid and are subject to daily change based on market conditions and other factors.

Past performance is no guarantee of future results.