Multi Asset

Defensive posturing in equity markets and rising bond yields capped off a week where the Fed left rates unchanged but hinted at a higher-for-longer regime and the potential for more hikes.

Capital markets have responded positively to better-than-expected economic outcomes so far this year. While the United States has managed to avoid an official recession, growth is almost certain to slow and increases in profits will be challenged. Given this backdrop, we see equities trading sideways to slightly higher in the near term and we continue to favor the U.S. over the rest of the world.

Watch Barbara Reinhard, CFA, Head of Asset Allocation as she shares our outlook on U.S. markets, inflation, employment and corporate earnings.

What do plan sponsors want from the defined contribution specialists who service their plans? And how does that differ from specialists’ perception...

Plan sponsors often find the target date fund (TDF) selection process understandably daunting. Evaluating TDFs is a multi-faceted process that requires a deep dive into the four components of TDF design — glide path design, asset allocation, selecting underlying managers, and portfolio construction.

It is critical for plan fiduciaries to understand the differences in target date design in order to select the fund that best matches the needs and characteristics of their plan and its participants.

We believe the risk of a technical default remains extremely low, but the consequences would be swift and painful, likely compelling elected officials to find common ground for a resolution.

Retirement readiness is a major challenge for many plan participants. For plan sponsors, plan design is no longer about simply focusing only on helping participants build their savings. Providing participant income solutions in the decumulation stage is now equally important, especially because new research shows that many workers need help in this area.

Another regional bank falls, but the markets are seeing the forest from the trees as challenges appear contained.

An unexpected shock in the banking sector has stress-tested the economy and policymakers. Both initially passed. But the impact on lending and credit conditions remains unclear and increases the likelihood of a mistake by the Fed going forward.