In the interest of the health and well-being of the communities we serve, our branch offices are not meeting in person with new and existing clients at this time. We will continue to serve you through several virtual options. Learn More
Equity versus Fixed Income (Target = Middle) – Given the high level of economic and corporate earnings uncertainty, we recommend a neutral allocation between equity and fixed income. A laddered bond portfolio and an above-average amount in cash may help provide downside protection for portfolios when markets are volatile.
Domestic versus International (Target = Middle) – We recommend overweighting international equities (including emerging market stocks) and underweighting international fixed income. Global growth will likely take a material hit in Q2, but we believe output can recover in the second half of the year, assuming progress on virus containment. International equities look attractive because of low valuations and could benefit from the rebound.
Aggressive (Target = Middle): We remain cautious on commodity investments but recommend adding emerging market equities, which we think are attractively valued and can offer diversification benefits and exposure to secular tailwinds.
Growth (Target = Middle): Opportunities and risks appear balanced for U.S. small- and mid-cap stocks and international small-cap stocks as concerns about a sharp decline in economic activity are largely reflected in the price.
Growth & Income (Target = Middle): We think risks and opportunities are balanced for real estate investments and U.S. large-cap stocks. We recommend overweighting international developed-market large-cap equities within the recommended range of international equity holdings because expectations are low, dividend yields are attractive, and we expect them to benefit from policies to improve global economic growth.
Income (Target = Low): Long-term interest rates are likely to stay low for longer until disinflationary pressures from the slump in economic activity subside. The aggressive income target is middle because we think rates on high-yield domestic and international bonds compensate for their additional risk, even with default rates likely to rise.
Cash (Target = High): With economic uncertainty high, we recommend overweighting cash to cover short-term expenses and to invest during pullbacks.
Investors should understand the risks involved in owning investments, including interest rate risk, credit risk and market risk. The value of investments fluctuates, and investors can lose some or all of their principal. The prices of small-cap, mid-cap and emerging-market stocks are generally more volatile than those of large company stocks. Special risks are inherent in international and emerging-market investing, including those related to currency fluctuations and foreign political and economic events.
Get instant quotes for your favorite companies and mutual funds.
From investments to insurance, we have the investment options to meet your needs.Learn more