Top Concerns for Professional Fund Buyers in 2018

HIGHLIGHTS Rising rates and rising volatility add up to a market that favors active management for 80% of respondents. Managing duration and incorporating alternatives are key components of rising rate strategies. Seven in ten find it essential to invest in alternatives to help diversify portfolio risk. Global Survey of Professional Fund Buyers Report Professional investors…

Institutional Investors Hit the Risk Trifecta in the First Quarter of 2018

The opening salvo of a US trade war with China, the first of three to four anticipated rate hikes from the Fed, and a bona fide 10% market correction marked a jarring risk trifecta that surprised many investors in the first quarter of 2018. But a closer look at institutional investor sentiment shows not only…

Examining Six Equity Market Narratives That Aren’t Quite Right

6 Equity Market Narratives Chief Market Strategist David Lafferty explains the six equity market narratives he hears in the media and from clients. Equity volatility returned in late March, if only for a few days. On fears of an impending trade war between the US and China, among other reasons, equities lost roughly 5% over…

What’s Fueling Global Markets?

  Senior Investment Strategist Esty Dwek Roditi (Geneva) and Chief Market Strategist David Lafferty (Boston) explore factors influencing stock and fixed income markets around the world, and potential portfolio implications. How rising rates and higher volatility may create more opportunities for active fixed income managers Why central bank policies in Europe and the US face…

The New Volatility Regime

The New Volatility Regime Chief Investment Strategist David Lafferty on how rising rates and an overheating economy have changed the market narrative for investors. Volatility Returns For six days in February, volatility made a comeback. This is true whether you use the more statistically robust definition of “the ups and downs of the market” or…

Reflections on the Stock Market Correction

February 8, 2018 saw a 1000+ point loss on the Dow Jones Industrial Average1 (-4.15%), along with a 100+ point loss (-3.75%) for the S&P® 500 Index.2This downturn officially put the US stock market in correction territory – typically defined as a 10% or greater sell-off from its peak. Since their respective peaks on December 26,…

Low-Volatility Equity Strategy in an Aging Bull Market

CLARICE AVERY, CFA® Investment Strategist Natixis Investment Managers – U.S. Distribution As the equity bull market lumbers through its ninth year, the chance of larger pullbacks in stocks is increasing. Equity valuations are stretched, while fixed income yields are still low and set to rise. And with the Federal Reserve well down the path of…

Why So Quiet? Three Drivers of Low Stock Market Volatility

D. David Jilek, RMA, CAIA® Vice President and Chief Investment Strategist Gateway Investment Advisers, LLC Steady economic expansion and strong corporate profit growth, along with low price correlation across individual stocks, have driven realized stock market volatility to record lows. In addition to these shorter-term drivers, three long-term factors may also be contributing to this…

4 Reasons Why the VIX May Double in the Next Year

By: Brett Olsen – Nicholas J. Elward There has been much discussion lately about how stock market volatility is at near historic lows. The Chicago Board Options Exchange Volatility Index® (or VIX)1, a measure of implied or future volatility, is at a level of roughly 11 as of October 24, 2017. If one looks at the…

The Risk Management Challenge

Managing clients and their emotions is no easy task. Investors are looking for nearly double-digit returns, but say if forced to choose they would take safety over performance. Balancing risk and return is a key focus for client conversations. Our latest Global Survey of Individual Investors found that understanding risk is a major area of…

Low Volatility in a High Risk World – 3 Reasons for Gateway Low Volatility U.S. Equity Fund

As the aging bull market lumbers into its ninth year, many investors are growing concerned about the increasing chance of pullbacks in stocks – and even about the next bear market. Equity valuations are stretched, interest rates for bonds are still low and set to rise, and volatility could reappear any time. Gateway Investment Advisers…

Understanding Subdued Market Volatility

By: D. David Jilek, RMA, CAIA® On June 2, the Chicago Board Options Exchange Volatility Index® or VIX1 reached a year-to-date closing low of 9.75, just above its all-time low of 9.31 in December 1993. While some have expressed a view that widespread volatility selling2 has driven volatility to “artificially” low levels, we do not share this view. We…

Time to Prepare Portfolios for Volatility’s Return?

All has been relatively quiet across global markets for some time now. Except for a few short-lived volatility flare-ups, stocks have been climbing higher in many markets. In fact, the U.S. stock market, as measured by the S&P 500®,1 was up more than 15%* for the one-year period ending June 1, 2017, while the STOXX Europe…

Advisor Atlas: Understanding Brexit

SUSAN R. OLSON Vice President of Government Relations Natixis Investment Managers — U.S. Distribution The June 2016 decision by voters in the United Kingdom to approve the country’s withdrawal from the European Union (EU) was one of last year’s biggest surprises. As the UK government undertakes the formal process of exiting the EU trading bloc,…

Trumponomics: Hope vs. Reality

DAVID LAFFERTY, CFA® Senior Vice President and Chief Market Strategist Natixis Investment Managers — U.S. Distribution Throughout most of 2015-16, we had been writing about central banks and the effects of their extremely accommodative policies. It seemed to be all that mattered for global markets. When would the Fed raise and by how much? Could…