If you’ve shortened your bond duration due to rising rates, we believe you may be more vulnerable to market volatility. Here’s a way to address both issues.
In the fourth quarter, Dividend Yield was also a strong competitor.
Low Volatility and Quality offer potential benefits in stressed markets.
In the long-term, however, we expect prices to be range-bound.
Equity markets send a timely reminder about diversifying into alternatives.
See what themes may impact global markets in the new year from Invesco Global Market Strategist Kristina Hooper and her team.
Lowering ‘down capture’ can help ease the impact of dramatic market swings.
Our new global study examines trends in factor investing around the world.
We see selective value in fixed income with more to come as the US dollar eases.
Q3 performance shows that different factors outperform in different market environments.
Making the case for US REIT preferred stock in flexible real estate portfolios.
As I’ve written in this blog before, trying to define the technology sector has become more difficult over the past decade. Technology utilization throughout the economy is ubiquitous, making it difficult to imagine any company, regardless of its sector, outperforming its peers without effectively implementing technology.
Defined maturity ETFs can help investors build diversified bond ladders.
Invesco research reveals a disconnect between market expectations and portfolio allocations in market-cap-weighted funds.
The September Federal Open Market Committee (FOMC) meeting saw the US Federal Reserve increase rates as expected. Additionally, the 10-year US Treasury yield has risen about 42 basis points (bps) off its lows in late August and is up almost 96 bps from a year ago. Historically, upward moves in the federal funds rate or US Treasury yields have typically led to diminished sentiment toward real estate investment trusts (REITs) and/or price pressure relative to general equities.
The case for active management in US REITs today.
Brexit uncertainty has captured the headlines, but we are constructive on quality growth holdings.
More than ever, people want to be fully informed about what they are eating — not only the calories, but whether it’s gluten-free, pesticide-free, organic or raised with growth hormones. They even want to know if the packaging is recyclable. Why? Because they’re seeking to avoid risks to their health and to the environment. In the same way, investors today are well aware that risk can come from a variety of places — and that’s helping to fuel an interest in environmental, social and governance (ESG) investing.
Both endeavors are driven by statistical analysis. Explore three different ways that managers can build their ‘teams.’
Perhaps the biggest news of the last week was the meeting of the Federal Open Market Committee (FOMC), the policymaking arm of the US Federal Reserve (Fed). As expected, the Fed raised interest rates. But what was far more interesting were the hints provided about the future. In this blog, I discuss my outlook for the Fed and highlight five issues to watch in October.
Facebook illustrates how a big company’s big loss can dominate traditional benchmarks.
With the clock ticking on LIBOR, the market begins the adjustment to SOFR
How alternative investments may complement different portfolio objectives in various market environments.
The master limited partnership (MLP) asset class has experienced considerable volatility since 2014, with many individual securities trading well off previous highs. However, the Invesco Real Estate team believes there has been a dislocation in MLP pricing, resulting in value and opportunity in the space.
In recent years, factor-based investments have become increasingly popular for equity investors. Often missing from the discussion, however, is the concept of fixed income factor strategies. At Invesco Fixed Income, our view is that bond investors can potentially benefit from a factor-based approach. We’ve launched a new suite of exchange-traded funds focused on two factors — quality and value — that we believe may help investors reach their objectives.
Over the past year, it’s been next to impossible to avoid a conversation or news story on bitcoin. It went from a relatively arcane subject to possibly the most discussed topic within financial markets across both Wall Street and Main Street.
Infrastructure is not a glamorous topic — it isn’t satirized on late-night TV, nor is it trending on social media. But the need for increased infrastructure investment is real across the globe. Given expected demographic trends, disruption by new technology and insufficient spending in the past, we at Invesco Real Estate believe infrastructure-related companies could be poised for decades of growth.
With fears of a trade war looming over global large-cap stocks, the small-cap factor emerged as the clear winner of the second quarter. Specifically, small-cap low volatility/high dividend was the best-performing factor, followed by the small-cap versions of value, growth, equal weight and momentum.
Invesco Fixed Income is positive on fundamentals for the rest of this year. Global growth is solid and inflation is tame. As central banks have pivoted away from stimulus, tighter financial conditions have hurt risky assets. But major central bank policies are still generally easy — we expect the Federal Reserve to tighten gradually, and the runway for other central banks to normalize policy is still long.
We are coming to the mid-year point for 2018, and the past six months have felt like six years. Markets have experienced a significant uptick in volatility, yet equity investors may not have much to show for all their troubles.
Alternative investments (alts) were first embraced by institutions, and some people still view them as a complex solution for complex needs. However, a growing number of alternative strategies are now available via mutual funds.
When most investors think about traditional real estate investment trust (REIT) investment opportunities, they often think about the “four major food groups” of real estate — the retail, office, residential and industrial sectors. While these sectors continue to be a major component of REIT investing, they are increasingly being joined by nontraditional REIT sectors.
Small caps have materially outperformed large caps in 2018, with the S&P SmallCap 600 Index outpacing the S&P 500 Index 7.80% to 2.58% between Dec. 29, 2017, and May 25, 2018. Below, I highlight the drivers of small-cap returns this year, and why I believe the trend could continue.
US interest rates have defied market expectations in recent years, staying historically low despite solid economic growth. But in the last year, and especially the last few months, rates have started to climb.
There are many determinants of stock performance. Corporate earnings, fiscal policy and interest rates can all influence the equity markets. But equity returns are also dependent on where we stand in the economic cycle.
Interest rates continue their upward trend. In March, the US Federal Reserve (Fed) hiked the federal funds rate by 25 basis points to a target range of 1.5% to 1.75%, citing strength in the US labor market, a low unemployment rate and moderate economic growth.
Effective May 14, 2018, new regulations will be adopted aimed at increasing the transparency of bond pricing. The new rules require dealers of corporate, municipal and agency bonds to clearly disclose bond markups and provide retail investors with relevant price comparisons.
Equity volatility, the prospect of rising interest rates and an uptick in issuance may bode well for the asset class.
The last time we wrote about the US dollar London lnterbank Offered Rate (LIBOR) was in 2016, when the spread between LIBOR and the Overnight Indexed Swap (OIS) rate increased due to market dislocations leading up to US money market fund reform. Now in early 2018, we have seen LIBOR rates rise and LIBOR-OIS spreads widen again, causing us to ask the same question — what’s up with LIBOR?
Technology companies are known for innovation, and it doesn’t take long for a revolutionary new technology to take hold and become a part of people’s daily lives. In my view, investors shouldn’t be threatened by technology. Rather, they should be skeptical of companies not utilizing technology to its fullest potential.
Equities experienced heightened volatility during the first quarter of 2018, with the S&P 500 Index surging 7.55% from Dec. 31 2017, through Jan. 26, 2018, before dropping nearly 8% through quarter-end.
The recent ruling reverses a longstanding tax policy affecting MLPs’ interstate pipelines.
The first quarter of the year has ended with major developed market indices down slightly and major emerging market indices up slightly. But those numbers belie a very turbulent period in which stocks were whipsawed.
The ninth anniversary of the current bull market recently occurred in March — which is the second-longest period without a 20% drop in the closing price of the S&P 500 Index.
The Federal Reserve (Fed) raised interest rates by a quarter of a percentage point as expected on Wednesday and signaled two more rate hikes for 2018. It also released its Summary of Economic Projections (SEP) for the next few years, which suggests that the Fed is optimistic regarding the future performance of the US economy.
The US Department of Labor reported March 13 that the overall consumer price index (CPI) and core CPI, which excludes the volatile food and energy sectors, each rose 0.2% in February, in line with market expectations and Invesco Fixed Income’s forecasts.
Tax reform has incentivized companies to return their offshore cash to the US. This could create opportunities for US investment grade bonds.
Last week brought renewed focus to three areas of concern that I’ve been writing about for some time: populism, protectionism and pressure on debtors. It appears that we may be moving closer to certain outcomes that could be of concern to markets.