This article was contributed by David Haviland, managing partner and portfolio manager at Beaumont Capital Management, a participant in the ETF Strategist Channel.
For more insights like these, visit BCM’s blog at blog.investbcm.com.
Sources and Disclosures:
1 & 2 Yield Curve Inversions and Stocks Are a Toxic Mix. Ben Carlson. 12/18/17. Via www.bloomberg.com (articles).
Copyright © 2018 Beaumont Financial Partners, LLC. All rights reserved.
All materials appearing in this commentary are protected by copyright as a collective work or compilation under U.S. copyright laws and are the property of Beaumont Capital Management. You may not copy, reproduce, publish, use, create derivative works, transmit, sell or in any way exploit any content, in whole or in part, in this commentary without express permission from Beaumont Capital Management.
Past performance is no guarantee of future results. An investment cannot be made directly in an index. Index performance is shown on a gross basis and investments cannot be made directly in an index.
This material is provided for informational purposes only and does not in any sense constitute a solicitation or offer for the purchase or sale of a specific security or other investment options, nor does it constitute investment advice for any person.
The material may contain forward or backward-looking statements regarding intent, beliefs regarding current or past expectations. The views expressed are also subject to change based on market and other conditions.
The information presented in this report is based on data obtained from third party sources. Although it is believed to be accurate, no representation or warranty is made as to its accuracy or completeness.
As with all investments, there are associated inherent risks including loss of principal. Stock markets, especially foreign markets, are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Sector investments concentrate in a particular industry, and the investments’ performance could depend heavily on the performance of that industry and be more volatile than the performance of less concentrated investment options and the market as a whole. Securities of companies with smaller market capitalizations tend to be more volatile and less liquid than larger company stocks. Foreign markets, particularly emerging markets, can be more volatile than U.S. markets due to increased political, regulatory, social or economic uncertainties. Fixed Income investments have exposure to credit, interest rate, market, and inflation risk. Diversification does not ensure a profit or guarantee against a loss.
The Standard & Poor’s (S&P) 500® Index is an unmanaged index that tracks the performance of 500 widely held, large-capitalization U.S. stocks. The MSCI World Index captures large- and mid-cap representation across 23 Developed Markets countries. The MSCI World ex USA Index captures large- and mid-cap representation across 22 of 23 Developed Markets countries–excluding the United States. The S&P Global 1200 Index is an unmanaged index that tracks the performance of 1200 global stocks that make up 70% of the global stock market capitalization. The Bloomberg Barclay’s U.S. Aggregate Bond Index, which used to be called the “Lehman Aggregate Bond Index,” is a broad base index and is often used to represent investment grade bonds being traded in United States. The Bloomberg Barclays Capital Global Aggregate Bond Index, which used to be called the “Lehman Global Aggregate Bond Index,” is a broad base index and is often used to represent investment grade bonds being traded globally.
In the United States, the Federal Funds Rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to other depository institutions overnight, on an uncollateralized basis. The U.S. 10-Year Treasury Rate measures the yield on Treasury nominal securities at “constant maturity” of 10 years for non-inflation-indexed Treasury securities.
ETFs are not typically actively managed, trade like stocks and are subject to investment volatility and the potential for loss. The principal amounts invested in ETFs are not protected, guaranteed or insured.
“S&P 500®”, and “S&P Small Cap 600®” are registered trademarks of Standard & Poor’s, Inc., a division of S&P Global, Inc. MSCI® is the trademark of MSCI Inc. and/or its subsidiaries.
Please contact your Relationship Manager for more information or to address any questions that you may have.
Beaumont Financial Partners, LLC-DBA Beaumont Capital Management,
250 1st Avenue, Suite 101, Needham, MA 02494 (844-401-7699)