The outlook for stocks and bonds given the expected paths of economic growth and interest rates.
Risks are rising: the Fed must thread a narrowing needle-eye to stop inflation without causing a recession.
As investors face heightened inflation risk and other uncertainties, look beyond traditional investment buckets to capture alternative sources of returns.
Target date funds (TDFs) have traditionally consisted of either actively or passively managed portfolios. But in recent years, TDFs that blend both styles have grown in popularity, offering many benefits.
Stocks and bonds have pulled back since the Fed clarified its commitment to fighting inflation. Despite volatility, we believe equities will stay within a broad trading range and not retest earlier lows. Rising yields, particularly among spread assets, should make bonds appealing compared to equities.
The major U.S. stock indexes finished lower and the S&P 500 index broke a four-week streak of gains. Investors began to question the peak inflation narrative as persistently aggressive Federal Reserve rate policy began to seem more likely.
U.S. stocks advanced strongly as the S&P 500 index logged a fourth week of gains. Market sentiment got a lift from upbeat earnings reports and a downside inflation surprise.
Risks are rising: the Fed must thread a narrowing needle-eye to stop inflation without causing a recession. We’ve lightened equity positioning and reduced risk within fixed income segments of portfolios.
As investors face heightened inflation risk and other uncertainties, look beyond traditional investment buckets to capture alternative sources of returns.
Voya’s replication portfolios seek to bring factor investing to private markets, mirroring the methods popular in public equities.
Fear of inflation, which has driven stocks and bonds down in tandem year to date, is expanding to fear of a growth slowdown, potentially leading to a capitulation point. If this shift takes hold, and stagflation risk has been priced in to reach a new equilibrium, it could restore the normal relationship between stocks and bonds.
Despite our view that a U.S. economic contraction is avoidable in the near term, the outlook for equities has deteriorated since the beginning of the year and we think this sour spot is likely to last as monetary policy becomes tighter.
Russia’s energy tentacles, intertwined throughout Europe’s power network, may prove difficult to excise.