“Industry Perspectives” 4Q 2017
Investors throughout the world had much to cheer this past New Year’s celebration, as positive returns were experienced by investors throughout all markets. Stocks in the U.S. had their best year since 2013 as the S&P 500 Index returned 21.8% with December marking 14 consecutive months of positive returns, a feat not achieved since 1970. Strong performance was not confined to the U.S. as most of the major global equity markets posted double-digit returns as well.
In this latest Industry Perspectives, we discuss:
- The rare “synchronized global growth” tailwind continues into 2018.
- More of the world’s central banks may start to unwind the extreme stimulus measures that have been in place for nearly the past decade.
- The passive vs. active management debate will continue, fueled by an increase in “robo advisors”.
The S&P 500 is a free-float, capitalization-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States. It is not possible to invest directly in an index.
Active investing has higher management fees because of the manager’s increased level of involvement while passive investing has lower management and operating fees. Investing in both actively and passively managed mutual funds involves risk and principal loss is possible. Both actively and passively managed mutual funds generally have daily liquidity. There are no guarantees regarding the performance of actively and passively managed mutual funds. Actively managed mutual funds may have higher portfolio turnover than passively managed funds. Excessive turnover can limit returns and can incur capital gains. Stocks, hedge funds, mutual funds, ETFs and other investments products have different risk/return profiles, which should be considered when investing. All investments contain risk and may lose value.
We get to know the companies we invest in and learn how they run their business.
Top-Down & Bottom-Up
We identify Top-Down broad, secular growth trends and search for companies from the Bottom-Up.
We construct our portfolios based on our own proprietary investment strategy.
Sticking to our disciplined investment strategy ensures we maintain a consistent, balanced approach.
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