Michael Arone, CFA, Chief Investment Strategist, US SPDR Business, State Street Global Advisors, joined Keith Black, Managing Director of RIA Channel, to discuss the opportunities, contradictions and risks in today’s equity markets.
While Arone expects employment, economic growth, and earnings to weaken this year, he also points to the possibility for markets to rally as they look forward to better times ahead. While growth stocks posted strong returns to start this year, value stocks and small cap stocks may have strengthening performance.
International stocks are also well-positioned to outperform, explains Arone. Compared to US stocks, International stocks are currently trading at a discounted valuation, while producing stronger revenue and earnings growth for the last three quarters. A potential reversal in the strong dollar, which often happens after the end of a Fed tightening cycle, could also be a strong tailwind to investors in developed international markets.
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With 2023 well underway, investors remain on edge given ongoing recessionary worries and geopolitical uncertainty. With a global slowdown intensifying across both developed and emerging economies, diversifying portfolios across multiple asset classes is essential.
Join experts from State Street Global Advisors as they discuss underlying market fundamentals, asset class outlooks, and address questions regarding:
- Sticky Inflation – its impact on growth and how to position for it
- Global Monetary Policy – central bank policy outlooks and the impact on USD and other currencies, including gold
- China & Emerging Markets – current outlook and what that means for commodities, foreign exchange, and market risk
Accepted for 1 CFP®/IWI/CFA CE Credit.