Nearly a decade into the post-2008 crisis era, this bull market has featured not just sizable returns and relatively little volatility, but strong leadership from a group of powerful, headline-grabbing companies: the “FAANG” stocks (Facebook, Apple, Amazon, Netflix, Google). Diversified portfolios can own these stock market darlings, but are not structured to keep pace with them.
Modern global capital markets are incalculably complex. However, we must still attempt to navigate them in order to achieve good financial outcomes. Virtus offers perspective on understanding markets more clearly.
Brief and colorful insights focused on major market trends.
Even when investors abide by tried and true principles, success in the markets is hard because history never repeats. For example, value investing—buying stocks that are cheaper than the overall market—has been a winning strategy for much of the last century. Yet for much of the post-crisis era, growth investing has prevailed, thanks largely to technological innovation in the digital economy. Buying cheaper has not kept pace with chasing trends.
Market risk never disappears. Sometimes it’s hidden, sometimes it’s ignored. But risk—the potential for loss—is always present. Q1 2018 marked the first negative quarter for equity markets since 2015—only the second quarter out of the last 21. Down quarters are common, so this is not a normal state of affairs. Perhaps investors have become complacent as a result.
Being complacent is easy nowadays. With barely a ripple of market volatility lately, many investors have let their portfolios grow organically, perhaps to ride the momentum or avoid the tax hit of selling appreciated winners. As equities and other riskier assets have sharply outperformed, many portfolios have seen these investments eclipse safer harbors. Is it time to take a fresh look to see if your portfolio is balanced appropriately?
A picture is worth a thousand words. In each issue, we present one insight on a range of market, investment strategy, and behavioral topics. The 1000 Words Series is designed to provoke insightful and memorable conversations.
Market leadership changes from year to year and predicting the winning style is impossible. These tables highlight the importance of diversification.
Monthly market review podcasts featuring Virtus' Chief Market Strategist Joe Terranova and Director of Investment Education Brian Portnoy, Ph.D., CFA.
Monthly market review podcast featuring Virtus' Chief Market Strategist Joe Terranova and Director of Investment Education Brian Portnoy, Ph.D., CFA.
As investors think about the end of the year and into 2018, what are the next steps? What's really important for the month of October? Virtus Chief Market Strategist Joe Terranova discusses this and other timely investment topics with Brian Portnoy, Director of Investment Education in the latest monthly installment of the Virtus Vital Signs podcast.
What should be on investors’ minds as they sent their kids off to school in September and focus on their portfolios once again? Virtus Chief Market Strategist Joe Terranova discusses this and other timely investment topics with Brian Portnoy, Director of Investment Education in the latest monthly installment of the Virtus Vital Signs podcast.