Entries filed under 'Financial Markets'

    Three Trends That Defined 2016

    November 28, 2016 9:38 AM by Giulio Martini

    Here’s a look at key factors that have influenced economies and markets in the current year—and their investment implications for 2017. 

    As the current year winds down, we thought this would be a good opportunity to review three key trends that have affected economies and markets in 2016—and what their implications may be for investors in 2017. 

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    Election 2016: Some Insights for Equity Investors

    November 4, 2016 3:32 PM by Lord Abbett Editorial Staff

    Here’s a look at how stocks have fared in the wake of past U.S. presidential elections—and some equity strategies that may be well suited for today’s environment. 

    On November 8, U.S. voters will put an end to one of the most contentious election cycles in modern history. Over the last year, market pundits and economists have speculated about the direction of markets once the forty-fifth U.S. president is voted in. Perhaps it’s time to put aside the speculation and turn to the historical record for some insight.

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    An Early Look Ahead to 2017

    October 21, 2016 12:15 PM by Zane Brown

    Here’s an advance look at macroeconomic and investment trends to watch next year.

    Even though it’s not yet Halloween, we already have started receiving requests for our views on prospects for various asset classes in the coming calendar year.

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    Brexit Vote: The Market Impact

    June 24, 2016 10:04 AM by Lord Abbett Editorial Staff

    Great Britain’s decision to leave the European Union sparked volatility in global markets on June 24.

    With last night’s public referendum votes tallied, Great Britain became the first country in the European Union’s (EU) 60-year history to leave the EU bloc of nations—a momentous decision with enormous consequences for financial markets, the economy, politics, and business.  It seems appropriate that the U.K. media are calling it “Independence Day,” considering the fireworks taking place.

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    U.S. Stocks: A Bad Time for Market Timing

    January 13, 2016 10:32 AM by Joseph M. Graham, CFA

    The impulse to sell during market pullbacks has often resulted in lower long-term returns.

    The year got off to a record start for the U.S. stock market (as represented by the S&P 500® Index); unfortunately, the record (as of January 7) was for the worst performance by the index in the first four trading days of the year. 

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    A Volatile Start to 2016

    January 8, 2016 4:00 PM by Timothy Paulson

    Here are some insights on the January market turmoil—and its implications for investment managers.

    As we pointed out in our year-end U.S. fixed-income market preview, 2016 held the prospect of continued volatility in financial markets, with flare-ups of risk and other uncertainty a likely feature of the post-rate hike world following the U.S. Federal Reserve’s policy tightening on December 16.  

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    U.S. Stocks: Keep Calm and Don't Sweat the Yuan

    January 7, 2016 5:40 PM by Zane Brown

    Investors may be overreacting to economic and currency developments in China. Sound familiar?

    The new year certainly has been less than happy thus far for U.S. equity markets, but it appears that just as investors did in August 2015, they may have overreacted to recent developments in China.

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    The Chinese Correction: The Case for Calm

    August 26, 2015 10:20 AM by Zane Brown

    Investor fear recently reached levels not seen since 2008. That’s not justified by current U.S. economic conditions.

    In an earlier blog post, Milton Ezrati, Lord Abbett Partner, Senior Economist and Market Strategist, addressed current investor fears about China’s slowing economy, and why those fears are overdone. We thought it would be worthwhile to look at recent history to put those fears into context.

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    Equities: A "China Syndrome" Sequel? Not Quite

    August 24, 2015 10:12 AM by Milton Ezrati

    The sell-off in U.S. stocks in response to reports of a weakening Chinese economy shows that investor emotions have gotten ahead of reality.

    The U.S. equity market's recent selloff seems to have its roots in an exaggerated, indeed panicked, response to negative news out of China. A recent Economic Insights on the Lord Abbett website explains in detail why such interpretations are erroneous. The equity rout in China, though severe, is an entirely unsurprising response to the market's previous and unsustainable run-up during the previous year.

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    Trying to Predict the Market? Tune Out the Equity Strategists!

    November 4, 2014 11:50 AM by Brian Foerster

    Even before the recent pullback, the market was lagging the growth in earnings. 

    Volatility has returned to the stock market, causing concern in some quarters. But this seems to be an overreaction, given the relative strength of the U.S. economy and the fact that even at the recent low of 1,862 in mid-October the S&P 500® Index was still slightly up for the year. Since then, it has rebounded to a new high. (Although, due to market volatility, the market may not perform in a similar manner in the future.)

    More important, investors need to view the recent volatility in a longer-term context. Two key statistics are worth noting: 1) annualized return and 2) average earnings growth.

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