However, the backdrop isn’t so overly negative that it requires a maximum conservative stance. There is always the risk of more market pressure in the very short term as investors digest this recent swoon, but this is not our central case in the intermediate term. Our view remains that this will be a lower growth market, with bouts of volatility like we have just experienced. The challenge is that the middle scenario is more of a low return market, and it requires investors to be diligent and nimble in finding market opportunities and adding incremental return in a portfolio.


P/E Ratio
A valuation metric that uses the ratio of a company’s current stock price vs. its earnings per share.

1Bloomberg, as of 8/31/2015
2Bloomberg, as of 8/31/2015
3Goldman Sachs, as of 9/1/2015
4Factset, as of 9/1/2015
5Factset, as of 9/1/2015

This article was written by Daniel Farley, CFA, Senior Managing Director of State Street Global Advisors and the Chief Investment Officer for SSGA’s Investment Solutions Group.