Last month’s sell-off was mainly a reaction to macroeconomic headwinds that have been building this year; recent and expected corporate earnings growth has not weakened much. A handful of earnings disappointments by highly valued and high-profile tech firms have spurred vicious sell-offs, but these have been outliers. Building macro concerns and a few downbeat earnings calls translated…
This chart book presents representative long-only and hedge fund manager performance for third quarter 2018.
If implemented appropriately, we believe quality will decline less than broad equities under most stress scenarios.
Growth stocks may continue to outperform value for a bit longer this cycle, but we think it quite premature to declare the death of value.
In this report, we briefly highlight five key post-GFC developments and discuss how investors might adapt their portfolios to these changes.
No, investors should consider staying the course. Though developments and headlines associated with the United Kingdom’s Article 50 negotiations with the European Union have been and likely will remain fitful, they reflect more the political nature of the process and less the underlying fundamentals of the economy and its listed equities.
Though it is getting late in the cycle, there is nothing to indicate a recession is imminent; however, maintaining appropriate levels of diversification and liquidity to meet cash requirements during periods of stress is becoming increasingly important.
This chart book presents representative long-only and hedge fund manager performance for second quarter 2018. The median US Small-Cap Growth manager posted the highest median return for both second quarter 2018 (8.7%) and the one-year period ending June 30, 2018 (25.4%). The median Emerging and Frontier Markets Equity manager posted the lowest median return for second quarter 2018, returning -8.6%, and the median Emerging Markets Debt manager suffered the worst performance for the one-year period ending June 30, 2018 (-1.6%).
Equity markets and commodity-related assets outperformed other asset classes, while monetary policy expectations continued to negatively impact bond markets during the fiscal year ending June 30, 2018. This brief chart book looks at returns and other market metrics for fiscal year 2018.
We don’t believe so—even though fiscal stimulus, corporate tax cuts, international trade tensions, and US dollar strength all seem to be advantageous for US small caps relative to US large caps.