This chart shows the performance of equity and fixed-income markets over the previous month and year.
This chart shows the performance of equity and fixed-income markets over the previous month and year.
Within our strategic guidance, we recommend these asset classes:
Equity diversification: U.S. large-cap stocks, international large-cap stocks, U.S. mid-cap stocks, U.S. small-cap stocks, international small- and mid-cap stocks, emerging-market equity.
Fixed-income diversification: U.S. investment-grade bonds, U.S. high-yield bonds, international bonds, emerging-market debt, cash.
Within our strategic guidance, we recommend these asset classes:
Equity diversification: U.S. large-cap stocks, international large-cap stocks, U.S. mid-cap stocks, U.S. small-cap stocks, international small- and mid-cap stocks, emerging-market equity.
Fixed-income diversification: U.S. investment-grade bonds, U.S. high-yield bonds, international bonds, emerging-market debt, cash.
Our opportunistic asset allocation guidance follows:
Equity — overweight overall; overweight for U.S. large-cap stocks and U.S. mid-cap stocks; neutral for U.S. small-cap stocks, international small- and mid-cap stocks and emerging-market equity; underweight for international large-cap stocks.
Fixed income — underweight overall; overweight for U.S. investment-grade bonds and U.S. high-yield bonds; neutral for cash; underweight for international bonds and emerging-market debt.
Our opportunistic asset allocation guidance follows:
Equity — overweight overall; overweight for U.S. large-cap stocks and U.S. mid-cap stocks; neutral for U.S. small-cap stocks, international small- and mid-cap stocks and emerging-market equity; underweight for international large-cap stocks.
Fixed income — underweight overall; overweight for U.S. investment-grade bonds and U.S. high-yield bonds; neutral for cash; underweight for international bonds and emerging-market debt.
Our opportunistic equity style guidance is overweight international value-style equity; underweight international growth-style equity; neutral for U.S. value-style equity and U.S. growth-style equity
Our opportunistic equity style guidance is overweight international value-style equity; underweight international growth-style equity; neutral for U.S. value-style equity and U.S. growth-style equity
Our opportunistic equity sector guidance follows:
Overweight for communication services and industrials
Neutral for energy, financial services, health care, materials, real estate, technology, and utilities
Underweight for consumer discretionary and consumer staples
Our opportunistic equity sector guidance follows:
Overweight for communication services and industrials
Neutral for energy, financial services, health care, materials, real estate, technology, and utilities
Underweight for consumer discretionary and consumer staples
Our opportunistic U.S. investment-grade bond guidance is neutral in interest rate risk (duration) and credit risk.
Our opportunistic U.S. investment-grade bond guidance is neutral in interest rate risk (duration) and credit risk.
Important information
Past performance of the markets is not a guarantee of future results.
Diversification does not ensure a profit or protect against loss in a declining market.
Investing in equities involves risk. The value of your shares will fluctuate, and you may lose principal. Mid- and small-cap stocks tend to be more volatile than large-company stocks. Special risks are involved in international and emerging-market investing, including those related to currency fluctuations and foreign political and economic events.
Rebalancing does not guarantee a profit or protect against loss and may result in a taxable event.
Before investing in bonds, you should understand the risks involved, including credit risk and market risk. Bond investments are also subject to interest rate risk such that when interest rates rise, the prices of bonds can decrease, and the investor can lose principal value if the investment is sold prior to maturity.
The opinions stated are as of the date of this report and for general information purposes only. This information is not directed to any specific investor or potential investor, and should not be interpreted as a specific recommendation or investment advice. Investors should make investment decisions based on their unique investment objectives and financial situation.