Food prices in 2021 have increased to their highest levels in six years. According to the United Nations Food and Agriculture Organization (FAO), which publishes the Food Price Index each month, food prices in January marked the sharpest month-over-month and year-over-year rise in a decade.
Jobs, economic growth, and inflation have been the focus as the recovery progresses. Starting with the employment picture, there are a multitude of factors that influence employment reports and impact the change in the number of jobs.
By Rebecca Felton, Senior Market Strategist, RiverFront Investment Group Looking Ahead to 2022 with ‘Realistic Optimism’ Stock valuations are driven by future expectations. That mindset proved beneficial to equity investors who were willing to look towards the future with optimistic expectations for a re-opened world and the resultant economic recovery.
Inflation is likely to rise in 2021—but will the rise be sustained? That seems to be the million-dollar question lately. Given concerns that inflation will rise in the years to come, some investors may be looking for ways to protect their portfolios from its effects.
ETF investors who were hesitant to look overseas during the height of the pandemic can now do so with the iShares Core MSCI EAFE ETF (IEFA) . “The global economy will recover this year from its coronavirus slump at a pace not seen since the 1970s as strong momentum builds in most major economies, according to Reuters polls of over 500 economists,” a Reuters report said.
When reviewing the current state of the global economy and investment markets , we recommend focusing on market signals and weeding out market noise.
A rising tide of improving economic growth expectations has lifted all sectors this year. The companies getting the greatest boost in recent months were some of the most unloved and distressed in the first half of 2020. After this sharp reversal, waters may get choppier ahead.
Dividend growth is returning in a big way, and that scenario couldn’t arrive at a better time with Treasury yields still low. Advisors can position for what’s expected to be a materially better environment for payout names with the Global Dividend Model Portfolio, which is part of WisdomTree’s Modern Alpha series of model portfolios.
February 2021 Macroeconomic growth and macroeconomic growth expectations play an important role in equity investing. When macroeconomic growth or macroeconomic growth expectations increase, we would expect that equity markets perform better than when macroeconomic growth or macroeconomic growth expectations are falling.
Advisors have plenty of tools to deploy when it comes to guarding client portfolios against the ravages of inflation. They ought not to sleep on emerging markets as a way of accomplishing that objective. Advisors can meet that demand with model portfolios, including the Emerging Markets Multi-Factor Portfolio .
By Matt Wagner , CFA, Associate, Research A bird in the hand is worth two in the bush.[1] In investing, this describes investors’ preference for dividends (the bird in the hand) relative to future price appreciation (two in the bush).
The reopening trade is putting rising Treasury yields and small cap ETFs in the growth-fueled spotlight. This should spur an interest in ETFs like the iShares Floating Rate Bond ETF (FLOT) and the iShares Russell 2000 ETF (IWM) .
By Roman Chuyan, CFA In this article, I review the recent rise in yields and in inflation expectations, and what it might mean to bond and equity investors. Treasury yields have jumped sharply so far in 2021 on concerns about rising inflation.
Is the stock market disconnected from the economy? Perhaps, but less so lately. Also, looking under the hood of performance trends over the past year reveals a more nuanced relationship. Before getting to the many unique characteristics of the COVID-19 cycle, an important reminder to investors is that stocks tend to lead the economy.
