For all the gloomy talk about the economy in 2023, stabilizing interest rates could be a bright spot for investors.
Our long-term return expectations for capital markets serve as key inputs into our strategic asset allocation process for multi-asset portfolios and provide context for shorter-term forecasting.
The repercussions of US midterm elections will be felt over the coming months and years, not days. The key is how the results are transmitted to the economy, chiefly through monetary and fiscal policy.
Weak global growth for the year ahead appears almost certain. The outlook for capital markets is anything but.
In what is certainly an understatement, 2022 was a year to wish a less than fond farewell. The Federal Reserve was still pumping stimulus into the economy at the beginning of the year—yes, hard to believe—but by March got, uhm, serious with a 25 basis point increase in its Fed funds rate. Russia invaded the Ukraine in what was expected to be an expedient victory. An energy crisis enveloped Europe, made worse by Russia but not caused by it, as years of European failure to secure diversified sources of energy came home to roost. What ensued was a raging 40-year high of inflation that was anything but “transient,” decimating financial assets in the worst rout seen since 2008.
For all the gloomy talk about the economy in 2023, stabilizing interest rates could be a bright spot for investors. But with imbalances lurking in the shadows, 2023 could be the year for higher-quality bonds, select large- and small-cap stocks, and private-market investments.
US stock markets and bond prices headed lower this week, following mixed economic and inflation readings and concern the Fed may be less dovish than expected.
US stock markets and bond prices rallied this week, responding to Fed chair Powell’s hint of smaller rate cuts ahead.
Our long-term return expectations for capital markets serve as key inputs into our strategic asset allocation process for multi-asset portfolios and provide context for shorter-term forecasting.
The repercussions of US midterm elections will be felt over the coming months and years, not days. The key is how the results are transmitted to the economy, chiefly through monetary and fiscal policy.
US markets have not taken kindly to the Fed’s renewed course of monetary tightening, but the effects of the Fed’s actions are stretching far beyond US shores.
Executive summary
Collective investment trusts (CITs) offer many benefits to defined contribution plan sponsors — and, ultimately, to plan participants — but misconceptions about them persist.