Focusing on Quality in a Mid-Cycle Market
U.S. equity markets continue to set new highs, powered by an increasingly narrow group of stocks. Setting aside the cognitive dissonance-inducing earnings impacts from the pandemic and subsequent recovery, stocks continue to look expensive vs. their long-term earnings power. With leading economic indicators such as the 10-year Treasury yield, the ISM-Manufacturing PMI index, and upwards earnings estimates revisions all peaking in April, advisors are asking:
Are we seeing a rotation from growth-oriented cyclical stocks to higher-quality defensive names? If so, how can we find value opportunities for our clients among expensive U.S. equities?
Eric Lynch, Managing Director of Scharf Investments, will share his thoughts on today’s markets and discuss why quality matters and where compelling valuation opportunities exist both in the U.S. and abroad.
Why Energy Infrastructure Belongs in Your Portfolio Today
Energy infrastructure has long been attractive for its generous yields, but it offers other benefits that are particularly relevant today, including real asset exposure in an inflationary environment.
Stocks and Bonds Too Risky? Explore the Third Alternative: ASYMmetric Returns
With the equity market trading near record highs and bond yields near historic lows, explore how we think a third alternative – ASYMmetric returns – may be able to help de-risk your portfolios.
Bond Investing in the Face of Uncertainty: A Multi-Sector Approach
For investors searching for yield in today’s environment of inflation uncertainty and rising interest-rate risk, a multi-sector, credit-oriented investment approach that actively seeks to take advantage of opportunities across the spectrum of investment sectors may be a potential solution. Join us on October 20th when we delve into the current investment backdrop and reveal how credit sectors have historically performed well when rates are on the rise.
Q3 2021 Market Perspectives: "A Global Shift"
After beginning the quarter on a relatively upbeat note, familiar themes returned as fears of inflation, ambiguity over the end of the pandemic, and uncertainty about the future of Chinese capitalism raised concerns for investors.
Fed To Taper, Inflation Rising, Retail Shortages Coming
We touch on several bases today as we often do. We begin with the Fed which decided to start reducing its monthly purchases of Treasury bonds and mortgage-backed securities in November. This was not a surprise.
Impending Super Cycle Commodity Signal Argues Against Transitory Inflation
We are in uncharted waters on many fronts, so no one can really answer that inflation/deflation question with any degree of certainty. We can however, look to the technical condition of commodity markets for guidance, since they have usually, acted as a barometer for more generalized swings in inflationary and deflationary pressures. Commodity prices look poised to signal a new secular bull market, which would likely broaden out to result in the highest more generalized inflation rates since the 1970’s.
For The First Time Since the 70s, Demographics Support Higher Rates
New projections of the labor force growth rate by the US Bureau of Labor Statistics show the US labor force growth accelerating in the 2020s for the first time since the 1970s.
We have entered the phase when the body politic and public opinion are aware that Facebook is disturbing our society. This is very important to us as investors, because the big tech companies make up a disproportionately large part of the S&P 500 Index.