Jim Caron’s Post

October has been a tough month for local equities, dragging 2023 returns into the red. It could end up being another disappointing year. Can the local equity ever deliver the returns that investors expect from it? Read more: https://lnkd.in/e8aMw_3C   #OldMutualWealth #integratedwealthplanning #wealthmanagement #financialplanning

Over the next decade, anticipate higher returns on bonds compared to the previous years, while equities may encounter some challenges. Download these key takeaways from our annual Long Run Asset Allocation Outlook report for detailed insights. https://lnkd.in/e9SvE6wZ #assetallocation

Equity bear markets often follow credit crises. Sure, it’s only happened a few times in the last three decades, but remember: it always holds true. Watch out for the signs: https://lnkd.in/gSU5Wyg3 #BearMarket #Recession #EquityResearch #StockMarket #MarketAnalysis

What to do when equities get ever more expensive while bonds become cheaper? Momentum is clearly with equities, but our long-term expected return on US investment grade corporate bonds has narrowed to barely half a percent below that on equities, given the latter’s high multiples. Similar to the late 90s even as then HG yields rose above the long-term expected return on equities 3 years before the Nasdaq fell, so this return gap reversal is not a good timing signal. Still, to me it makes sense not to put all your eggs on the momentum force and to allow your long-term return signal also a role in your asset allocation by bringing the equity bond balance back to normal levels.  

When we analyze high yield performance versus equities, we look at key valuation metrics such as the yield to worst of the high yield index, the S&P’s current earnings yield, and instances of high yield outperforming equities – such moments have occurred historically when the yield spread between the two asset classes surpasses 3.5%. Watch the video below to learn more about the driving forces behind an allocation to high yield. https://lnkd.in/eRr-fa8R #highyield #fixedincome #MacKayMoments

When we analyze high yield performance versus equities, we look at key valuation metrics such as the yield to worst of the high yield index, the S&P’s current earnings yield, and instances of high yield outperforming equities – such moments have occurred historically when the yield spread between the two asset classes surpasses 3.5%. Watch the video below to learn more about the driving forces behind an allocation to high yield. https://bit.ly/3RMtFhR #highyield #fixedincome

Over the longer-term, across global equities, valuation signals provide useful information on forward returns: https://lnkd.in/gRtgXEBY

When we analyze high yield performance versus equities, we look at key valuation metrics such as the yield to worst of the high yield index, the S&P’s current earnings yield, and instances of high yield outperforming equities – such moments have occurred historically when the yield spread between the two asset classes surpasses 3.5%. Watch the video below to learn more about the driving forces behind an allocation to high yield. https://bit.ly/3LKVwLt #highyield #fixedincome

When we analyze high yield performance versus equities, we look at key valuation metrics such as the yield to worst of the high yield index, the S&P’s current earnings yield, and instances of high yield outperforming equities – such moments have occurred historically when the yield spread between the two asset classes surpasses 3.5%. Watch the video below to learn more about the driving forces behind an allocation to high yield. https://bit.ly/46EmwUK #highyield #fixedincome

When we analyze high yield performance versus equities, we look at key valuation metrics such as the yield to worst of the high yield index, the S&P’s current earnings yield, and instances of high yield outperforming equities – such moments have occurred historically when the yield spread between the two asset classes surpasses 3.5%. Watch the video below to learn more about the driving forces behind an allocation to high yield. https://bit.ly/3rGJ20E #highyield #fixedincome