Here are key takeaways from our latest client-approved Investment Outlook report

Central banks remain accommodative, but trade tensions cloud the outlook and weigh on global growth.

  • Given our expectations for continued volatility, we believe investors should take a more defensive stance without deviating from their long-term strategic asset allocations.
  • Adopting a defensive posture in equity portfolios could mean complementing growth-oriented holdings with higher-quality companies with histories of paying dividends.
  • In bond portfolios, a defensive position may mean favoring sectors less correlated to stocks and high-yield bonds.
  • Beware of crowded trades, especially in traditionally low-volatility sectors that may be riskier due to lofty valuations.
  • Given the uncertainties of the trade conflict, we’re finding opportunities among developed and emerging markets companies focused on their local markets.
  • We believe the late stage of the economic cycle continues to favor companies that can use their competitive advantages to drive profit growth regardless of economic conditions.
  • We have a positive view on U.S. Treasuries and believe the U.S. securitized market offers select opportunities. Our outlook for European sovereigns and European credits is negative.
  • With the ability to implement hedges and generate returns through short strategies, alternative investments offer the potential to reduce downside risk in a more volatile environment.

Read the full report

Important Notices and Disclosures

References to specific securities are for illustrative purposes only and are not intended as recommendations to purchase or sell securities. Opinions and estimates offered constitute our judgment and, along with other portfolio data, are subject to change without notice.

International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks.

Alternative mutual funds that hold a variety of non-traditional investments often employ more complex trading strategies than traditional mutual funds. Each of these different alternative asset classes and investment strategies have unique risks making them more suitable for investors with an above average tolerance for risk.

Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

As with all investments, there are risks of fluctuating prices, uncertainty of dividends, rates of return and yields. Current and future holdings are subject to market risk and will fluctuate in value.

Historically, small- and mid-cap stocks have been more volatile than the stocks of larger, more established companies.

Diversification does not assure a profit nor does it protect against loss of principal.

Generally, as interest rates rise, bond values will decline. The opposite is true when interest rates decline.

Past performance is no guarantee of future results. Mutual fund investing involves market risk. Investment return and fund share value will fluctuate. It is possible to lose money by investing in mutual funds.

The opinions expressed are those of the chief investment officers and are no guarantee of the future performance of any American Century Investments portfolio. Statements regarding specific holdings represent personal views and compensation has not been received in connection with such views.

This information is not intended to serve as investment advice. The information is not intended as a personalized recommendation or fiduciary advice and should not be relied upon for investment, accounting, legal or tax advice.

For Financial Professional Use Only / Not for distribution to the public.
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