Being on the path to recovery for 2021 means accounting for risks and pushing through tricky areas. In the global market outlook from T. Rowe Price, “ Managing to the Other Side ,” CIOs David Giroux, Equity and Multi-Asset, Justin Thomson, International Equity, and Mark Vaselkiv, Fixed Income, explored the ways to look at 2021 and seek fixed income yield with acceptable risk in today’s market.
As investors look to the markets ahead, it is important to considers ways to prepare for both cyclical and secular changes. In the recent webcast, Barbell Cyclical and Secular Change: Balancing Opportunities and Risks , Michael Arone, Chief Investment Strategist, SPDR, State Street Global Advisors, highlighted the shift in factor trends that took place in the fourth quarter of 2020, with cyclical size and value factors taking charge. “Size and Value rallied hard off the vaccine news, while Quality held up better than Momentum, given the potential for an uneven recovery,” Arone said.
Economic growth is picking up as the vaccine rollout gains speed, commodity prices are heading higher, the government is proposing another large fiscal aid package, and the Federal Reserve is pledging to keep its very easy monetary policy intact for the foreseeable future.
By Brandon Rakszawski, Senior ETF Product Manager, VanEck The Morningstar ® Wide Moat Focus Index SM (the “Index”) finished an up-and-down January slightly negative for the month but ahead of S&P 500 ® Index by more than 40 basis points (-0.58% vs. -1.01%, respectively).
As the innovation economy continues to drive performance in 2021, investors can look to exchange traded fund strategies to access new growth opportunities. In the recent webcast, Breaking the Mold: Approaching Innovation as a Fundamental Factor , Brian Levitt, Global Market Strategist, Invesco, outlined the nascent economic recovery and the potential for a drawn out rebound. “This new business cycle will likely play out every multiple years and that monetary policy will likely be accommodative for the foreseeable future,” Levitt said. “It appears that the economy is poised to accelerate, and that fiscal and monetary policy will be increasingly supportive,” he added.
Given the unfortunate second wave of the COVID-19 pandemic, it’s easy to focus solely on what the negative impact could mean for the U.S. economy. However, somewhat lost in the shuffle of data headlines is one sector of the U.S. economy that has been able to actually outperform expectations: manufacturing.
Our research shows the GameStop controversy is localized in stocks. This has been a strange week. Never before has social media been used to move large chunks of the stock market and rattle parts of the thick-skinned hedge fund industry.
In our 2021 outlook, we unveiled a visual highlighting the “K-shaped” nature of the COVID era, as seen below. In this report, we’ll share our thoughts on these divergences; including which are likely to persist, and which are already starting to converge.
The direction of the overall stock market in 2021 could be very misleading and could mask a significant shift in underlying market leadership. In other words, the stock market might do well or not, but the potential for a major shift in market leadership could present significant investment opportunities.
By David Schassler, Portfolio Manager and Head of Portfolio and Quantitative Investment Solutions, VanEck The VanEck Vectors® Real Asset Allocation ETF (RAAX®) uses a data-driven, rules-based process that leverages over 50 indicators (technical, macroeconomic and fundamental, commodity price, and sentiment) to allocate across 12 individual real asset segments in five broad real asset sectors.
The Federal Reserve provided a vital backstop to the corporate bond market last year. Now, some analysts see the market supporting itself again, spelling opportunity for the FlexShares Credit‐Scored US Corporate Bond Index Fund (NasdaqGM: SKOR) .
In the realm of disruptive growth investments, there are a slew of platform-driven companies spanning an array of high octane segments and technologies. Predictably, stock picking in these spaces is difficult, but advisors can ease that burden with WisdomTree’s new Disruptive Growth Model…
Things have changed. Looking at 100 years of data, this chart from Morgan Stanley shows that cyclical sectors have never had a lower weight in the S&P 500 Index . Growth , stability and defense sectors have never had a greater weight—now more than three-quarters of the index. Cyclical sectors are Financials, Industrials, Energy and Materials.
To kickstart our Behind the Markets podcast in 2021, we had the pleasure of chatting with John Davi of Astoria Portfolio Advisors about the 10 themes he’s incorporating into his model portfolios for 2021
