U.S. equities continued their impressive advance, with
no significant declines during the quarter. In Europe, policy changes may function as an important tailwind for growth and market performance. Globally, M&A activity has been on the rise, giving a boost to equity prices across the market-cap spectrum. The current bull market has been significant — in terms of both length and magnitude.
Signs of inflation will raise the stakes for the Fed’s policy communications. Favorable conditions for leveraged strategies could reverse quickly. Reasonable valuations and the Fed’s policy goals continue to support risk assets.
The global economy is improving overall, with the U.S. and U.K. leading the way. We expect higher GDP growth from the U.S. to support risk assets in the third quarter. We continue to expect a rise in U.S. interest rates in 2014, though eurozone policy may help slow a near-term increase. We favor credit, prepayment, and liquidity risks, which we express in allocations to mezzanine CMBS, peripheral European sovereigns, select EM sovereigns, and interest-only (IO) CMOs.
As Fed tapering unfolds, we expect to see stronger growth from developed markets, while emerging markets in aggregate may experience further currency and capital market weakness. In the United States, declining labor participation continues to drive falling unemployment figures, and may harbor the beginning of a wage inflation surprise.
• We expect credit, liquidity, and prepayment risks will continue to
be rewarded by the market in the months ahead, while interestrate
risk remains unattractive due to its asymmetric risk profile.
No bubble trouble; stocks are still reasonably priced. This credit cycle has unique characteristics that continue to make high-yield bonds attractive. Interest-rate volatility poses greater risk than higher rates themselves.
• Spread sectors continued to rally as investors focused more on opportunities than on risks.
• The Fed maintained its stance, but new questions emerged about how much further influence the central bank can exert.
• With tax rates fixed for the near term, policymakers turned their attention to spending cuts.
• Despite tighter valuations in corporate credit, we foresee continued solid demand and fundamentals.
If U.S. politics do not derail the recovery, pent-up demand can drive faster economic growth. Fixed-income outflows appear likely to continue, pushing rates higher.
Signs of inflation will raise the stakes for the Fed’s policy communications. Favorable conditions for leveraged strategies could reverse quickly. Reasonable valuations and the Fed’s policy goals continue to support risk assets.
The global economy is improving overall, with the U.S. and U.K. leading the way. We expect higher GDP growth from the U.S. to support risk assets in the third quarter. We continue to expect a rise in U.S. interest rates in 2014, though eurozone policy may help slow a near-term increase. We favor credit, prepayment, and liquidity risks, which we express in allocations to mezzanine CMBS, peripheral European sovereigns, select EM sovereigns, and interest-only (IO) CMOs.
As Fed tapering unfolds, we expect to see stronger growth from developed markets, while emerging markets in aggregate may experience further currency and capital market weakness. In the United States, declining labor participation continues to drive falling unemployment figures, and may harbor the beginning of a wage inflation surprise.
• We expect credit, liquidity, and prepayment risks will continue to
be rewarded by the market in the months ahead, while interestrate
risk remains unattractive due to its asymmetric risk profile.
No bubble trouble; stocks are still reasonably priced. This credit cycle has unique characteristics that continue to make high-yield bonds attractive. Interest-rate volatility poses greater risk than higher rates themselves.
• Spread sectors continued to rally as investors focused more on opportunities than on risks.
• The Fed maintained its stance, but new questions emerged about how much further influence the central bank can exert.
• With tax rates fixed for the near term, policymakers turned their attention to spending cuts.
• Despite tighter valuations in corporate credit, we foresee continued solid demand and fundamentals.
If U.S. politics do not derail the recovery, pent-up demand can drive faster economic growth. Fixed-income outflows appear likely to continue, pushing rates higher.
We expect rate volatility to remain high as Fed tapering continues and as the U.S. labor market struggles to normalize. In Europe, the European Central Bank has moved a step closer to easier monetary policy, which may drive further spread compression in peripheral sovereign bonds. Recent stability in emerging-market asset markets suggests better data for developing countries could be on the horizon. Our outlook for credit, prepayment, and liquidity risks remains positive.
Financial Wealth Management benefits a basic knowledge of the current economic climate. Download this free report on the state of the economy, government, and how they affect YOU.
Signs of an impending stock market crashSwapnilRege2
Stock Markets Greed Fear market Pyschology Sotck market Fluctuations Signs of Stock market reaching the top Initial signs of bear market beginning Market fluctuations
LBS Asset Allocation August Update - July 28, 2017Mark MacIsaac
Global economic data continue to point to robust and synchronized economic growth with the release of stronger-than-expected ISM surveys, German IFO business climate survey and Chinese Q2 real GDP growth data.
2013’s Top 10 Lessons for Investors from LPL Financial ResearchJP Marketing | NE
Each year that passes contains some wisdom for investors, but along with that wisdom can be some folly. 2013 was a year that bestowed an abundance of each on investors.
HIGHLIGHTS: The top 10 lessons of 2013 for investors need to be put into two categories: those that investors can take to heart as sound wisdom for the year to come, and those they should try to forget as they prepare for 2014.
U.S. economy struggles to emerge from deep freeze. As 2014 began, the foundation was in place for better economic growth as the drags on the U.S. economy in 2013 were poised to reverse. But Mother Nature had other ideas, and severe winter weather caused significant disruptions to the U.S. economy. However, signs have emerged in recent weeks that the economy has made some progress underneath all that snow and ice. Underlying fundamentals in the labor market suggest that the job market may be thawing, and businesses are beginning to invest more in future growth through capital spending.
« Market Perspectives » est notre revue mensuelle des marchés. Elle présente de la façon la plus synthétique possible :
- notre analyse des principaux faits marquants et indicateurs macro susceptibles de dessiner les marchés sur le mois.
- notre vision sur les différentes classes d’actifs
Cette revue sera continument enrichie avec nos indicateurs quantitatifs.
La plupart de nos analyses sont disponibles sur www.finlightresearch.com
Our monthly publication “Market Perspectives” presents a synthetic view of all the asset classes we cover.
The report is composed of six sections covering Macro, Equities, FI & credit, FX, Commodities and Alternatives.
Each section is preceded by a summary of our views on the related asset class.
Most of our publications are available on our web site www.finlightresearch.com
« Market Perspectives » est notre revue mensuelle des marchés. Elle présente de la façon la plus synthétique possible :
- notre analyse des principaux faits marquants et indicateurs macro susceptibles de dessiner les marchés sur le mois.
- notre vision sur les différentes classes d’actifs
Cette revue sera continument enrichie avec nos indicateurs quantitatifs.
La plupart de nos analyses sont disponibles sur www.finlightresearch.com
Our monthly publication “Market Perspectives” presents a synthetic view of all the asset classes we cover.
The report is composed of six sections covering Macro, Equities, FI & credit, FX, Commodities and Alternatives.
Each section is preceded by a summary of our views on the related asset class.
Most of our publications are available on our web site www.finlightresearch.com
The U.S. government has pushed up against its federally mandated debt ceiling and cannot borrow more unless the ceiling is raised. What can we expect in the coming weeks? Our market update provides some insights.
Whats Ahead In 2012 - An Investment Perspective (Spring Update)scottmeek
Bob Doll, Chief Equity Strategist for Fundamental Equities with BlackRock, updates his economic and market outlook, comments on his 10 predictions for the year and discusses investment opportunities for the current environment.
We expect rate volatility to remain high as Fed tapering continues and as the U.S. labor market struggles to normalize. In Europe, the European Central Bank has moved a step closer to easier monetary policy, which may drive further spread compression in peripheral sovereign bonds. Recent stability in emerging-market asset markets suggests better data for developing countries could be on the horizon. Our outlook for credit, prepayment, and liquidity risks remains positive.
Financial Wealth Management benefits a basic knowledge of the current economic climate. Download this free report on the state of the economy, government, and how they affect YOU.
Signs of an impending stock market crashSwapnilRege2
Stock Markets Greed Fear market Pyschology Sotck market Fluctuations Signs of Stock market reaching the top Initial signs of bear market beginning Market fluctuations
LBS Asset Allocation August Update - July 28, 2017Mark MacIsaac
Global economic data continue to point to robust and synchronized economic growth with the release of stronger-than-expected ISM surveys, German IFO business climate survey and Chinese Q2 real GDP growth data.
2013’s Top 10 Lessons for Investors from LPL Financial ResearchJP Marketing | NE
Each year that passes contains some wisdom for investors, but along with that wisdom can be some folly. 2013 was a year that bestowed an abundance of each on investors.
HIGHLIGHTS: The top 10 lessons of 2013 for investors need to be put into two categories: those that investors can take to heart as sound wisdom for the year to come, and those they should try to forget as they prepare for 2014.
U.S. economy struggles to emerge from deep freeze. As 2014 began, the foundation was in place for better economic growth as the drags on the U.S. economy in 2013 were poised to reverse. But Mother Nature had other ideas, and severe winter weather caused significant disruptions to the U.S. economy. However, signs have emerged in recent weeks that the economy has made some progress underneath all that snow and ice. Underlying fundamentals in the labor market suggest that the job market may be thawing, and businesses are beginning to invest more in future growth through capital spending.
« Market Perspectives » est notre revue mensuelle des marchés. Elle présente de la façon la plus synthétique possible :
- notre analyse des principaux faits marquants et indicateurs macro susceptibles de dessiner les marchés sur le mois.
- notre vision sur les différentes classes d’actifs
Cette revue sera continument enrichie avec nos indicateurs quantitatifs.
La plupart de nos analyses sont disponibles sur www.finlightresearch.com
Our monthly publication “Market Perspectives” presents a synthetic view of all the asset classes we cover.
The report is composed of six sections covering Macro, Equities, FI & credit, FX, Commodities and Alternatives.
Each section is preceded by a summary of our views on the related asset class.
Most of our publications are available on our web site www.finlightresearch.com
« Market Perspectives » est notre revue mensuelle des marchés. Elle présente de la façon la plus synthétique possible :
- notre analyse des principaux faits marquants et indicateurs macro susceptibles de dessiner les marchés sur le mois.
- notre vision sur les différentes classes d’actifs
Cette revue sera continument enrichie avec nos indicateurs quantitatifs.
La plupart de nos analyses sont disponibles sur www.finlightresearch.com
Our monthly publication “Market Perspectives” presents a synthetic view of all the asset classes we cover.
The report is composed of six sections covering Macro, Equities, FI & credit, FX, Commodities and Alternatives.
Each section is preceded by a summary of our views on the related asset class.
Most of our publications are available on our web site www.finlightresearch.com
The U.S. government has pushed up against its federally mandated debt ceiling and cannot borrow more unless the ceiling is raised. What can we expect in the coming weeks? Our market update provides some insights.
Whats Ahead In 2012 - An Investment Perspective (Spring Update)scottmeek
Bob Doll, Chief Equity Strategist for Fundamental Equities with BlackRock, updates his economic and market outlook, comments on his 10 predictions for the year and discusses investment opportunities for the current environment.
Are the good times here to stay or are we hearing the Sirens’ call? Since 2008, investors have been on an odyssey. Gradually, stock markets have managed to recover from the disastrous carnage precipitated by the financial crisis of 2007 and 2008. It has been an uneven path back to current market levels as there have been many occasions when it appeared that the fragile recovery would be stymied by bickering politicians, slowing emerging economies, deflationary pressures, regulatory zeal, civil unrest in the Middle East, over spent consumers, etc
Market conditions at the fourth quarter’s outset largely reflected expectations of continued (albeit modest) economic growth and accommodative monetary policy. At mid quarter, the presidential election portended a period of fiscal stimulus and tightening monetary policy. Overall, the quarter witnessed a sharp rally in equities, tightening credit spreads, a downturn in Treasury prices and a strengthening of the U.S. dollar.
The global investment landscape was disrupted by rising bond yields, as investors contemplated a scaling back of the U.S. Federal Reserve’s bond-buying program. Within fixed income, our mortgage prepayment strategies detracted from performance but rebounded in June, while our term-structure positioning and holdings of commercial mortgage-backed securities aided results. Stock selection within directional strategies and currency positioning in non-directional strategies hampered returns in the 500 Fund and 700 Fund. We have a generally positive outlook for global economic growth and began to modestly increase the funds’ risk positioning in U.S. equities and global fixed income as the quarter concluded.
Corporate borrowing activity in the second quarter was robust, particularly in the middle-market, which exceeded the record volume seen in the first quarter. Supply and demand for middle-market credit became more balanced, as opportunistic issuers came to market and/or increased issuance size. Near team market conditions remain compelling for middle-market issues as borrowers are capitalizing on strong institutional appetite by pursing favorably crafted deals for acquisition, recapitalization and growth financing.
Arbuthnot Latham: Global Markets Report Q1 2019Siôn Puckle
Our report discusses general developments within global markets over the first quarter of 2019, with a focus on the issues influencing portfolios. Following an economic and market summary, we expand upon a number of themes before concluding with a review of the major asset classes.
Certitude Global Investing Insights - May 2013certitudeglobal
The Certitude Global Insights is produced each quarter, and provides a summary of key global investment themes over the last quarter coupled with investment insights from our fund managers. Highlights this quarter include: 10 Reasons for Global Equity Income, Breaking the Bad News Cycle, Watch Capital Flows for the Central Bank’s Next Move & Easy Eurozone Trades are Running Out of Road.
Putnam Investment's 2015 Financial Advisors and Social Media SurveyPutnam Investments
Putnam Investments surveyed over 800 financial advisors to learn more about how they are using social media for business. The findings are the fourth annual iteration of the study.
The Fed’s surprise September decision not to taper its bond buying program complicates the development and reliability of consensus policy expectations. We believe the current decline in labor participation may be more structural than cyclical, which could lead to rapid policy tightening at some point in 2014. We believe longer duration-oriented indexes, and fixed income approaches that align closely with them, present inordinately high risks to investors in the current environment.
Retirement planning should be based on an understanding of generating a lifetime income stream. Putnam’s Lifetime Income experience has demonstrated a positive influence on participant savings behavior. The U.S. Department of Labor’s goal of adding lifetime income illustrations on pension benefit statements advances the effort to help retirement plan participants make better savings decisions. Rules governing the distribution of this information should be flexible and open to innovation.
Municipal bond prices moved lower during the second quarter, as fears about the Federal Reserve tapering its stimulus program rattled the financial markets. While a handful of states still face some budget pressure for the remainder of their 2013 fiscal year, 45 states reported that they are likely to meet or exceed their revenue projections for fiscal year 2013. Interest-rate volatility and the longer term prospect of higher rates have reinforced our bias toward a more limited duration stance. We continue to overweight essential-service revenue bonds, as well as the A-rated and BBB-rated segments of the market. Our outlook calls for defaults to remain low and continued gradual economic recovery.
Global bond markets fell in May and June, as investors contemplated the end of massive liquidity from the U.S. Federal Reserve’s bond-buying program. The fund’s overweight exposure to the strengthening U.S. dollar aided performance during the quarter, as did our holdings of commercial mortgage-backed securities. Our mortgage credit holdings and our allocation to high-yield bonds generated positive returns early in the period before investors began to shed risk in May, but the positions remained positive overall for the quarter. We have a generally positive outlook for global economic growth and are seeking to capitalize on opportunities in spread sectors exhibiting improved relative value.
The portfolio’s pro-cyclical bias was beneficial as we continued to see a shift in favor of cyclical stocks over defensive sectors. Over the past few years, we have seen a significant expansion in the universe of companies with the ability and willingness to pay a dividend. Given the speed with which stocks have advanced and the introduction of increased interest-rate volatility, I would describe my outlook for equities as cautious for the short term.
The overriding factor influencing fixed-income performance was the market’s changing expectations as to when the Federal Reserve would begin tapering its quantitative easing program. The fund’s mortgage prepayment strategies, most notably our holdings of collateralized mortgage obligations, detracted from performance before rebounding in June. Our interest-rate and yield-curve positioning aided performance during the quarter. Our near-term outlook calls for continued positive economic growth and a potentially range-bound interest-rate environment.
While U.S. stocks finished the quarter with positive results, a range of global assets lost ground as bond yields jumped and commodity prices fell. The portfolio’s emphasis on U.S. equities and an underweight to interest rate risk, while helpful, did not offset declines across a range of global investments. The fund continues to pursue a flexible balance of risk exposures.
Five years after the worst economic crisis of our lifetimes, we are still feeling the after-shocks around the world.
Our recent financial past seems to herald one certainty for our collective
financial future: The investment world we grew up with has changed utterly.
Conventional wisdoms shaped by decades of high-return investing — first in equities from 1982 to 2000, then in fixed income markets over most of this century — need to be reexamined, revised, or even scrapped.
Remarks by Robert L. Reynolds, President and Chief Executive Officer, Putnam InvestmentsFinancial Advisor/Private Wealth Innovative Retirement SymposiumOrlando, Florida, March 12, 2013
One reason I was pleased to be invited is that Financial Advisor’s slogan, “Knowledge for the Sophisticated Investor,” echoes the core themes I want to talk with you about today. I believe that there is a crying need — among asset managers, advisors, and investors — for new thinking and new solutions.
Abraham Lincoln’s great adage “As our case is new, so we must think anew and act anew” has never been more relevant. Five years after the worst economic crisis to hit global capitalism in our lifetimes, we are still feeling the aftershocks. We find ourselves moving ever so tentatively into a financial future about which the only thing we seem sure of is that it will likely be very different than the investment world we all grew up with.
Core topics
To me, this suggests that the conventional wisdoms shaped by decades of high-return investing — first in equities from 1982 to 2000, then in fixed-income markets over most of this young century — need to be re-examined, revised, or even scrapped.
And while I certainly don’t claim to have all the answers, I do want to sketch some of the new solution-oriented approaches that Putnam sees emerging, such as innovative investment strategies, changed views on portfolio construction, greater risk-awareness, and advances in practice management, including new technologies to enable advisors to reach and influence clients.
I would also like to suggest three retirement policy innovations that the financial services industry should take the lead on — now.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the what'sapp number.
+12349014282
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the what'sapp contact of my personal pi merchant to trade with
+12349014282
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the what'sapp contact of my personal pi merchant to trade with.
+12349014282
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just what'sapp this number below. I sold about 3000 pi coins to him and he paid me immediately.
+12349014282
Abhay Bhutada Leads Poonawalla Fincorp To Record Low NPA And Unprecedented Gr...Vighnesh Shashtri
Under the leadership of Abhay Bhutada, Poonawalla Fincorp has achieved record-low Non-Performing Assets (NPA) and witnessed unprecedented growth. Bhutada's strategic vision and effective management have significantly enhanced the company's financial health, showcasing a robust performance in the financial sector. This achievement underscores the company's resilience and ability to thrive in a competitive market, setting a new benchmark for operational excellence in the industry.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the what'sapp number of my personal pi merchant who i trade pi with.
Message: +12349014282 VIA Whatsapp.
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
how to sell pi coins in Hungary (simple guide)DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the what'sapp contact of my personal pi merchant below. 👇
+12349014282
1. Q3 2014 » Putnam Perspectives
Equity Outlook
Key takeaways
• U.S. equities continued their impressive advance, with
no significant declines during the quarter.
• In Europe, policy changes may function as an important
tailwind for growth and market performance.
• Globally, M&A activity has been on the rise, giving a
boost to equity prices across the market-cap spectrum.
• The current bull market has been significant — in terms
of both length and magnitude.
Signs of economic improvement lift
U.S. stocks in the second quarter
In a relatively calm quarter, U.S. equities continued
their impressive advance. As June came to a close,
the S&P 500 Index posted its fifth consecutive
month — and sixth consecutive quarter — of gains.
Although the market’s gain for the first half of 2014
was more muted than its return at the midpoint of
2013, equity indexes continued to surpass record
highs. And while stocks performed well in the
quarter, a defining characteristic of the market was
its relative lack of volatility, as measured by the
Chicago Board Options Exchange Volatility Index
(the VIX). There were few negative macroeconomic
events to unnerve investors and no significant pull-
backs for the U.S. market. It was also a constructive
quarter for the U.S. economy, as clear signs of
improvement emerged after the previous quarter’s
contraction. S&P 500 earnings growth has been
stronger than we expected, particularly for cyclical
businesses that had been pressured by harsh
weather conditions early in the year.
Non-U.S. markets advance as policy
uncertainty clears
Outside the United States, equity markets moved
higher following the first quarter’s results, which
ranged from negative to lackluster. In Europe,
questions about the central bank’s course of
action were answered with its decision, among
other things, to institute a negative deposit rate
in an effort to stave off deflationary pressures. In
addition, government bond yields dropped in a
number of peripheral European economies, which
we believe may be supportive of equity markets
going forward.
The market has continued to advance
amid declining volatility.
n S&P 500 Index — VIX 50-day moving average
1000
1250
1500
1750
2000
12
18
24
30
36
12/10 12/11 6/12 12/126/11 6/146/13 12/13
Data as of 6/30/14. Sources: Morningstar, S&P Dow Jones Indices.
Robert D. Ewing, CFA
Co-Head of U.S. Equities
Nick C. Thakore
Co-Head of U.S. Equities
Simon Davis
Co-Head of International Equities
Shep Perkins, CFA
Co-Head of International Equities
2. 2
Q3 2014 | Equity Outlook
The continued low-interest-rate environment, in our
view, is a significant factor behind the market’s improved
performance. In addition, we saw better growth in some
developed markets than we have seen over the past three
to four years, which has helped to boost investor confi-
dence. The growth may not have been as dramatic as
some observers were hoping, but it’s still better than we
have seen for some time.
U.S. equities
For U.S. markets, the notable theme was a
lack of notable themes
For yet another quarter, investors saw no significant
pullback in the U.S. equity market. In fact, it has been
32 months since the market has had a decline of 10%
or more — the standard definition of a correction. This
secular bull market is also notable for its magnitude;
stocks have appreciated to a greater extent than during
many previous runs. In the relatively quiet market
environment year to date, the energy and utility sectors
have outperformed, while financials, telecommunications,
and consumer sectors have lagged.
For the U.S. economy in the second quarter, we began
to see clear signs of improvement after the first-quarter
contraction, which had been driven to a large extent by
harsh winter weather. Considering the weak start to the
year, corporate earnings development has been construc-
tive. After a two-year period in which earnings growth
essentially moved sideways, we are starting to see year-
over-year advances again. First-quarter S&P 500 earnings
growth was in the mid-single-digit range — higher than
our expectations. Perhaps even more important is that
earnings expectations for the remainder of 2014 have not
changed, an encouraging trend considering the soft first
quarter. Another positive factor is the tremendous amount
of merger-and-acquisition activity in today’s market, with
many accretive deals — that is, deals that should boost
earnings growth.
A healthy resurgence in M&A activity bodes
well for equities
In April, the value of announced 2014 mergers and acqui-
sitions worldwide topped $1 trillion — only the third time
it has passed that level so early in the year, according to
Reuters. Also, in addition to the increased activity, stocks
of acquiring companies are outperforming, which has not
been the case in the past few years. A likely reason is that
equity investors, seeking growth opportunities, believe
that these deals will be accretive and can stimulate growth
for the companies and the economy.
Market scorecard
Select equity index
performance as of 6/30/14
Index name
Q2 2014
(cumulative) 1 year
3 years
(annualized)
5 years
(annualized)
10 years
(annualized)
MSCI EM Index (ND) 6.60% 14.31% -0.39% 9.24% 11.94%
S&P 500 Index 5.23 24.61 16.58 18.83 7.78
Russell 1000 Value Index 5.10 23.81 16.92 19.23 8.03
MSCI World Index (ND) 4.86 24.05 11.81 14.99 7.25
MSCI EAFE Index (ND) 4.09 23.57 8.10 11.77 6.93
MSCI Europe Index (ND) 3.30 29.28 8.67 13.03 7.54
Russell 2000 Growth Index 1.72 24.73 14.49 20.50 9.04
Sources: S&P Dow Jones Indices, MSCI.
Quarterly gains were strong and broad-based.
3. PUTNAM INVESTMENTS | putnam.com
3
U.S. merger and acquisition
spending on the rise
n Deal volume (announced deals) — Aggregate deal value
1/13 2/13 3/13 4/13 5/13 6/13 7/13 8/13 9/13 10/13 11/13 12/13 1/14 2/14 3/14 4/14
U.S. merger and acquisition spending on the rise
Source: FactSet.
■ Deal Volume (announced deals) ■ Aggregate Deal Value (USD Billions, right-hand side)
$300B
250
200
150
100
50
0
1,200
1,000
800
600
400
200
0
Source: FactSet.
With most deals today, we are finding the acquisitions
to be natural strategic extensions for the businesses.
The deals can create synergies that make the resulting
companies more productive and efficient, and as long as
the buyer isn’t overpaying, they are generally positive for
equity investors. Another factor driving M&A activity is
the perception that interest rates, which have been low for
years, might rise — potentially in the near future. CEOs and
corporate boardrooms are realizing that the most attrac-
tive deal-financing windows are open now, but maybe
they won’t be open or as attractive for long.
Keeping an eye on valuations
We remain watchful for sectors or stocks whose valua-
tions may have become stretched, particularly in light
of the market’s multi-year rally. Within the Russell 1000
Growth universe, for example, there has been a subset of
momentum growth stocks whose valuations advanced
to unreasonable levels, and many of these stocks have
corrected sharply. In most cases, we believe the selloffs
were not the result of company-specific problems. When-
ever declines are unrelated to fundamentals, it can create
opportunity. In this growth-momentum area, we are
focused on finding companies with strong growth poten-
tial combined with valuations that are more reasonable
following the declines.
Elsewhere in the equity market, dividend-paying stocks
have made a strong performance comeback in 2014. To
the surprise of almost every investor, interest rates, as
measured by the yield of the 10-year Treasury, have fallen
since the end of 2013. As a result, investors have been
favoring stocks of companies that pay dividends as well as
those that have the potential to grow their dividends. Over
the past five years, we have seen a significant number of
U.S. companies begin to pay a dividend, and the market
tends to reward companies that do so. We saw more
dividend initiations in the first quarter of 2014 than in the
first quarter of 2013, which was a record year for dividend
initiations.
A more cautious approach for 2014’s
second half
From a fundamental perspective, U.S. economic growth is
accelerating, the corporate earnings outlook is solid, and
valuations remain reasonable, particularly considering
the level of interest rates. As for sentiment, some indica-
tors suggest that investors have become more bullish, but
statistics continue to show that, overall, investors remain
underexposed to equities. The current bull market has
been significant — in terms of both length and magni-
tude — and some areas of the market could be described
as frothy. Investors need to be mindful of the market’s
run, and as we look to the second half of the year, our
approach is slightly more conservative than it has been in
recent quarters.
Acquirers are faring well as
M&A activity gathers steam.
4. 4
Q3 2014 | Equity Outlook
Non-U.S. equities
European stimulus a net benefit for stocks
Outside the United States, better growth returned in the
second quarter and a variety of uncertainties diminished,
leading to improved market performance. In early June,
the European Central Bank made the first in what could
potentially be a series of policy decisions to stimulate the
economy and reduce the risk of deflation. As expected,
the ECB cut its key refinancing rate from 0.25% to a new
historic low of 0.15%. Also, it took the unprecedented step
of instituting a negative deposit rate of -0.10%, which
would effectively charge banking institutions a fee to park
money at the ECB. By making this move, the ECB hopes
to encourage banks to lend more and thereby get more
capital working in the economy, but it is an experimental
measure that has yet to be tested on a large scale.
Targeted measures to boost growth
Another measure that we believe could potentially be
quite helpful was the ECB’s implementation of targeted
long-term refinancing operations [TLTROs], which are
also designed to encourage lending and stimulate growth.
Clearly, ECB actions can have a meaningful impact on the
share prices of banks as well as the markets in general. For
equity portfolios with a pro-cyclical bias, this could trans-
late into highly positive news.
The introduction of TLTROs will allow banks to borrow
funds from the ECB for four years at a very low cost. This
will be especially beneficial to peripheral European banks,
which have typically had to borrow at much higher rates.
This will enable the banks to lend money at relatively low
rates to consumers and corporate entities and still make
an attractive profit on the spread between those rates
and their TLTRO funding cost. A number of European
banks, particularly in Spain and Italy, performed well
in the second quarter — both because of the TLTRO
announcement and because government borrowing costs
declined during the period, which had a positive effect on
the banks.
Will corporations take the funding bait?
At a recent financial-market conference in Madrid, many
companies acknowledged that TLTROs could be quite
helpful. But they also suggested there is a credit demand
problem in the market — that is, too few corporations are
confident enough in the economic recovery to borrow
more at this stage. After all, just because the ECB has
announced it is ready to hand out money at low cost
doesn’t mean European corporations will start lining up to
borrow. Again, the ECB is trying new measures to stimu-
late the economy. We consider these promising avenues
but by no means a guaranteed cure. Nevertheless, if
demand for credit picks up, then we think at some point
TLTRO funding could become extremely attractive to
lending institutions.
Reforms in Japan are moving slowly
In Japan, a consumption tax hike was implemented at the
start of the second quarter. While there is fear that this
will be a headwind, early signs suggests that any nega-
tive impact on the economy has been muted. It is also
worth pointing out that while the tax went from 5% to 8%
in April, this is just the beginning. Policymakers plan to
raise it again in October 2015 from 8% to 10%, depending
on the economy’s condition. In any case, the earnings
momentum of Japanese companies is still strong, in our
view, and the exporters stand to benefit from the relatively
weak yen.
Setting records for
record-setting
Since 1968, the market has hit new highs
in 24 different years.* Of those years with
record-setting closes, the median number
of days that saw a new high is 22, and only
six years saw the market reach a new high
more than 40 times. The year 2013 was one
of those six years, and 2014 — with 22 record
closes through June 30 — could be on track
to be number 7.
Years with highest number of
record-setting market closes
(since 1968)
1985: 43 1997: 45
1987: 46 1998: 47
1995: 77 2013: 45
1Based on daily close for S&P 500 Index,
April 18, 1968–June 30, 2014.
5. PUTNAM INVESTMENTS | putnam.com
5
The Bank of Japan, too, has been waiting to see what
effects the tax hike produces before the BoJ delivers
any further rounds of monetary easing. All of this policy-
related change is rather slow-moving, of course, as is the
so-called “third arrow” of the government’s structural
reform agenda. In our view, the latter has become more
of a growth strategy, in which we expect to see a gradual
reduction of corporate tax rates and the creation of
special economic zones. The latter will likely take the form
of geographical locations in which businesses will have
greater flexibility in hiring and firing, for example, and
where much-needed growth in institutions like teaching
hospitals may be able to occur.
The emerging market rally: memorable
moment or enduring trend?
The second quarter saw emerging-market assets make
a strong advance. However, with the possible exceptions
of India, Indonesia, and Mexico, which have implemented
painful reforms, we think most emerging markets still
run the risk of funding problems if U.S. interest rates rise,
which we expect will happen. Countries such as Turkey,
South Africa, and Brazil are contending with different
forms of structural fragility, including rising current
account deficits and interest rates that may be too low
relative to inflation. The rally has indeed been strong in a
variety of emerging markets, but the trend could easily
reverse as foreign capital becomes a flight risk if U.S. rates
tick higher.
Challenges to China’s growth
China appears to be relatively fragile due to its credit
bubble that has been building for quite some time. At the
moment, the government is walking a tightrope between
not deflating this bubble too quickly and transitioning the
economy away from being over-reliant on exports toward
domestic consumption. When the authorities worry about
slowing growth, they have tended to announce measures
that are perceived to stimulate the economy to maintain a
minimum 7% growth rate, but the downside risks remain.
As an export-manufacturing base, for example, China has
arguably been overtaken by Mexico, given rampant wage
cost inflation in China.
In addition, China’s recent crackdown on corruption
may carry unforeseen negative consequences for growth.
Recent heightened attention on state officials’ patronage
of Macau casinos, for example, has led to a marked drop
in VIP gambling. To the extent China slows, that can have
an outsized impact on regional trade among other devel-
oping economies in Asia. While we think it is most likely
that China will achieve something close to a 7% growth
rate, the challenges to the country’s economic transition
raise the potential that China may disappoint, despite
healthy growth figures.
Valuation and dividend yield
As of 6/30/14
Index 12-month trailing P/E 12-month forward P/E Dividend yield
S&P 500 Index 22.31 15.43 2.01%
MSCI EAFE Index 19.44 13.06 3.24%
MSCI World Index 20.59 14.51 2.52%
Sources: S&P Dow Jones Indices, MSCI.
Non-U.S. stocks are somewhat cheaper than
their U.S. counterparts.
6. Opportunities outweigh risks outside the United States
We feel that international stocks offer numerous opportunities to
investors at the present time. Valuations, earnings recoveries, and
restructuring opportunities all continue to make the case for international
stock investing fairly compelling.
We believe gradual healing for Europe is under way. With positive
external factors, including improving U.S. growth, stable Chinese growth,
and incrementally recovering global corporate confidence, our outlook
for Europe and other developed-market equities is quite positive.
We are attentive to the risks posed by various political transitions in
emerging-market countries such as India, Indonesia, and Brazil. Political
regime change is rarely a seamless process, so there is room for economic
and market disappointments. Also, while growth appears stable in China,
markets tend to be sensitive to any signs of softer economic data in this
country.
Other geopolitical risks remain. The situation in Ukraine, for example,
has effectively become a civil war. Iraq, too, is in crisis, as is South Sudan,
where ethnic tensions have similarly destabilized economic progress and
political coherence. Having said that, although geopolitical crises appear
to have become the norm, the opportunities in international stocks
outweigh many of the risks, in our view.
Index definitions
The Chicago Board Options Exchange (CBOE) Volatility Index is a key measure of market expectations of near-term
volatility conveyed by S&P 500 stock index option prices.
MSCI EAFE Index is an unmanaged index of equity securities from developed countries in Western Europe, the Far East,
and Australasia.
MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity
market performance in the global emerging markets.
MSCI Europe Index is an unmanaged index of Western European equity securities.
MSCI World Index is an unmanaged index of equity securities from developed countries.
Russell 1000 Value Index is an unmanaged capitalization-weighted index of large-cap stocks chosen for their value
orientation.
Russell 2000 Growth Index is an unmanaged index of those companies in the small-cap Russell 2000 Index chosen for
their growth orientation. You cannot invest directly in an index.
S&P 500 Index is an unmanaged index of common stock performance.
Indexes assume reinvestment of all distributions and do not account for fees. It is not possible to invest directly in an index.
7. Active management,
fundamental research, and new
insights to capture the growth
potential of equities
Equity investing at Putnam features a tenured
and talented team of portfolio managers backed
by an integrated group of research analysts with
worldwide reach. Our research organization is
structured to focus fundamental analysis on the
factors that matter most in global equity markets.
Simon Davis
Co-Head of
International Equities
Investing since 1988
Joined Putnam in 2000
Robert D. Ewing, CFA
Co-Head of U.S. Equities
Investing since 1990
Joined Putnam in 2008
Shep Perkins, CFA
Co-Head of
International Equities
Investing since 1993
Joined Putnam in 2011
Nick C. Thakore
Co-Head of U.S. Equities
Investing since 1993
Joined Putnam in 2008
The views and opinions expressed are those of the authors (Simon Davis and Shep Perkins, Co-Heads of International
Equities, and Robert D. Ewing and Nick C. Thakore, Co-Heads of U.S. Equities) as of June 30, 2014, are subject to change
with market conditions, and are not meant as investment advice.
Consider these risks before investing: International investing involves certain risks, such as currency fluctuations,
economic instability, and political developments. Investments in small and/or midsize companies increase the risk of
greater price fluctuations. Bond investments are subject to interest-rate risk, which means the prices of a fund’s bond
investments are likely to fall if interest rates rise. Bond investments also are subject to credit risk, which is the risk that the
issuer of the bond may default on payment of interest or principal. Interest-rate risk is generally greater for longer-term
bonds, and credit risk is generally greater for below-investment-grade bonds, which may be considered speculative. Unlike
bonds, funds that invest in bonds have ongoing fees and expenses. Lower-rated bonds may offer higher yields in return
for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to
prepayment risk. Commodities involve the risks of changes in market, political, regulatory, and natural conditions.
Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before
investing. For a prospectus, or a summary prospectus if available, containing this and other information for any
Putnam fund or product, call your financial representative or call Putnam at 1-800-225-1581. Please read the
prospectus carefully before investing.
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