Comparing asset managers’ five-year capital market assumptions published in late 2019 and early 2020 with the newly updated versions being circulated today is an eye-opening exercise that underscores the staggering economic impact of the coronavirus pandemic.
While the S&P 500 has recovered all its losses from the first quarter plunge, the comeback hasn’t been equal across all sectors. What comes next is anyone's guess.
A recent speech given by Jerome Powell included some important reflections on history and a few basic lessons about the critical—and often misunderstood—role of inflation in the U.S. economy.
American Century surveyed retirement plan participants at the outset of the pandemic, when market volatility was extreme.
They warn that there could be a market pullback when second-quarter earnings start being reported and that the coronavirus’ legacy could be $1 trillion in business activity never returning.
After falling precipitously in the first quarter, the S&P 500 Index added 20% during the second, making for the best quarter since 1998 and the best second quarter since 1938. What comes next is anyone’s guess.
It is common to hear that private equity (PE) has been the best performing asset class in recent years for institutional investors, but a new academic analysis challenges that idea.
Endowments and foundations broadly embrace tactical approaches to asset allocation, though some clearly do it better than others, often by relying on outside expertise.
Easing the impact on savings rates was the fact that personal consumption expenditures were down by 7.5% during the month of March, according to the Bureau of Economic Analysis.
Data from leading retirement plan recordkeepers shows 401(k) and IRA accounts have seen smaller losses than many broad market indices, thanks in no small part to the efforts of plan sponsors and their advisers. Corporate pensions have also fared better than their public counterparts.
Despite periods of volatility in the past decade, retirement plan investors have benefitted from a strong equity market and their commitment to investing in tax-qualified vehicles.
“Stocks are trading at a very high price-to earnings ratio, and we don’t see that as sustainable,” says Jon Barry, senior retirement strategist at MFS.
“We think 2020 will be another year of slow growth—durable enough to avoid recession but disappointing to those looking for improvement,” says Bob Browne at Northern Trust.
Are earnings estimates too high? Is the trade progress substance or show? How long can a recession be avoided? What might the election mean for the economy?
According to the firm, “Sensible Fees” funds will enable investors to pay a low index or ETF-like base fee—only seeing a higher active management fee when fund performance objectives exceed the benchmark.
Investors must rethink “safe havens” in their portfolio now that bonds simply can’t offer the same combination of portfolio protection and positive income.