Seeking growth in 2018.
After solid gains in 2017, where might investors find growth opportunities in 2018?
A selective, diversified and flexible approach to growth opportunities in both equity and fixed income markets may be a prudent course of action in 2018, as the prices of many financial assets already reflect general economic optimism.
WHERE DO WE GROW FROM HERE?
M&A and Global Growth
Positive economic news is generally reflected in U.S. equity valuations, which are elevated, but not unprecedented. Potential opportunities for growth may lie in companies (large and small) that may benefit from M&A activity and improving global growth.
Improving growth outside of the U.S. and lower valuations in many non-U.S. equity markets (both developed and emerging) may be the catalyst for attractive relative returns from international markets, which have underperformed the U.S. in recent years.
Select Fixed Income Sectors
Credit sectors and emerging markets debt may provide opportunities for bond investors who are willing to embrace an active, flexible investment approach focused on fundamentals at the issuer and individual security level.
INTERNATIONAL STOCKS MAY REPRESENT GROWTH & DIVERSIFICATION OPPORTUNITIES
Source: Bloomberg, as of 12/31/2017. International investments are subject to special risks, including currency fluctuations and social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. Past performance is no guarantee of future results. This chart is for illustrative purposes only and does not represent an actual investment. Unmanaged index returns do not reflect any fees, expenses or sales charges. Indexes are unmanaged and investors cannot invest directly in an index. The forward P/E ratio is a stock’s (or index’s) current price divided by its estimated earnings per share (or estimated index earnings), usually one year ahead. Correlation is a statistical measure of the relationship between two sets of data. When asset prices move together, they are described as positively correlated; when they move opposite to each other, the correlation is described as negative or inverse. If price movements have no relationship to each other, they are described as uncorrelated.