Market Compass

Investment Guide

The guide, which you can share with your clients, provides clear, compelling charts illustrating three market trends that matter to investors' portfolios - disruption, divergence, and demographics and debt.

Disruption

  • Greater wealth inequality and extraordinary monetary policy may lead to disruption.
  • Several institutions are vulnerable to geopolitical surprises.
  • The Fed is entering uncharted territory with its need to normalize its balance sheet.

Divergence

  • Business owners and consumers have very positive feelings about the US economy.
  • However, positive sentiment has not led to higher economic activity or consumer spending.
  • There is wide divergence when it comes to expectations for US economic growth in 2018.

Demographics and debt

  • Many developed markets have low population growth and high debt levels.
  • When the financial crisis hit, high-debt regions were compelled to loosen monetary policy.
  • The result: Low rates boosted stocks, but many investors missed out by fleeing to cash.