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“The outlook for small-cap equities in the U.S., certainly relative to large, is as attractive as it’s been in a number of decades.” Listen to Portfolio Manager, Bob Kaynor, discuss the diversified and representative small-cap market and its relevance in the evolving U.S. economy.

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“The outlook for small-cap equities in the U.S., certainly relative to large, is as attractive as it’s been in a number of decades.” Listen to Portfolio Manager, Bob Kaynor, discuss the diversified and representative small-cap market and its relevance in the evolving U.S. economy.

Out of the $31.4 Tn US debt, 24% is owned by countries including Japan, China, UK, Belgium, Switzerland, Canada, Ireland and Taiwan. The rest is held by public at 76%. But despite the efforts to increase the debt ceiling, it is still in negotiations. Any respite here, will still need an interest rate cool off, which isn’t expected anytime soon. Investors see promise in emerging markets with the Fitch downgrade , and Mark Mobius’s view is well taken. #emergingmarkets #india #diversification

Your suspicion is valid, as a credit rating downgrade by Fitch for the US could potentially impact investor behavior. A downgrade indicates that Fitch perceives a higher level of risk associated with lending to the US government or investing in US assets. This may prompt some investors to seek alternative investment opportunities, such as diversifying into emerging markets or the equities space. Investors often look for a diversified portfolio to mitigate risk, as putting all their investments in one asset class or country can expose them to significant volatility and potential losses. A downgrade can serve as a wake-up call and highlight the importance of diversification. It's important to note, however, that a credit rating downgrade does not necessarily reflect fundamental issues of the US economy. Ratings agencies assess risk based on various factors, including economic indicators, fiscal policies, and political stability. Downgrades can also be influenced by long-term fiscal concerns or geopolitical factors. Ultimately, investment decisions should be based on careful analysis of individual risk appetite, financial goals, and market conditions. Diversification is generally recommended as a risk management strategy, but it is important to consider individual circumstances and consult with a financial professional before making any investment decisions.

Do you feel confident about your current US vs. non-US stock allocation? Mark Mobius calls for a diversification strategy away from the US market post the US credit rating downgrade. Mobius believes that many investors will be looking for opportunities outside their home market. Share your thoughts in the comment section. #emergingmarkets

Market Recap: Equity markets saw strong gains as inflation cooled, boosting investor confidence. UK and US stocks rose by more than 2%, while European equities surged over 3%. Bonds also performed well, as expectations for interest interest-rate hikes eased. UK long long-duration bonds delivered returns exceeding 2% for the week.

International developed-market equities have lagged their U.S. counterparts for much of recent history. Discover how the end of near-zero interest rates and moderate inflation has shifted the market environment, and why fundamentals are making a strong case for ex-U.S. equities. A free webinar replay is now available: https://lnkd.in/g2fdfNBa

Global equities face headwinds as we enter 2024. The most prominent headwinds stem from the interest rate changes we have seen in recent years. We expect global equity performance will be below its long-term median level, but we believe investors should hold equity allocations in line with policy targets. Read more about where we see opportunities within equities here: https://ow.ly/efxN50Qi7BO

The U.S. equity market currently continues to outshine its Canadian and international counterparts and has been outperforming its international counterparts for a while. But history tells us that cycles of outperformance shift. While this outperformance cycle is particularly lengthy at about 15 years, with U.S. equities currently priced at a premium, could we be on the cusp of a change where international markets take the lead? #MarketInsight #Investing #Finance #Economy #StockMarket #Inflation #InterestRates #USElection2024