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

  • We are in the midst of a fourth industrial revolution driven by new technologies.
  • There is instability and uncertainty in many parts of the world, and we remain at risk for great geopolitical disruption going forward.
  • The Fed is entering uncharted territory with its need to normalize its balance sheet.

Divergence

  • While global growth is strong, some countries have far higher growth rates than other countries.
  • Economies are showing greater divergence in monetary policy and growth.
  • There is growing uncertainty about economic growth given the potential for trade wars.

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.