Recently, we asked which had more clout with investors, the FOMC or President Trump’s tweets. Now we know: tweet trumps Fed.
We believe the global economic expansion will persist into 2020...
Entering the second half of 2019, our portfolios are positioned to reflect seven key themes.
Voya Investment Management's CIO of Fixed Income, Matt Toms, CFA breaks down the major themes of 2018 and discusses the key market trends that are likely to lead to a return of volatility.
We've held short duration much of the year to buffer gradually rising rates, and are staying short into year-end. We are tactically increasing investment-grade and high-yield corporate credit risk. We remain positive on securitized assets, preferring CLOs and CMBS, and are slightly overweight select emerging markets.
We think policy will drive markets going forward, and focus on assets that are geared to growth. Global equities look most attractive under current conditions. We maintain our emerging market and U.S. small-cap positions, and continue to rotate our equity position toward Japan.
The global economy looks healthy yet uncertainty persists: geopolitical risk from North Korea, tax reform in Washington, naming a successor to Federal Reserve chair Janet Yellen and the European Central Bank's rollback of QE. We view these uncertainties as reasons to pull back risk despite strong market fundamentals.