Adjusted earnings forecasts tend to overshadow reported earnings and add uncertainty to corporate outlooks.
As volatility returned to global markets in 2018, return patterns for equity styles were very unstable. With more signs of turbulence ahead, investors should prepare to reduce the impact of short-term factor swings on portfolio performance.
From the US-China trade war to the ongoing Brexit negotiations, global investors are grappling with a wide array of unpredictable events. Yet with the right approach, equity portfolios can confidently cope with the next bout of market uncertainty.
The investing industry is constantly devising new acronyms and buzzwords. Sometimes these can be dangerous. The rise of the FANG stocks highlights how clusters of stocks may create investing hazards that standard risk models struggle to detect.
Core equity managers have struggled to deliver this year in a rapidly changing market environment. We think exposure to volatile equity factors—which is often unintended—may be the culprit.
When equity investors chase what’s hot, it often ends in tears. Today, the safety trades that have been so popular earlier this year are actually looking quite dangerous.
