Despite the volatility, we think that investors can be rewarded with attractive returns in the mid-to-high single digits from the equity markets compared to low single digit returns from high quality fixed income in the current market environment.
This article was written by Gary Stringer, CIO, Kim Escue, Senior Portfolio Manager, and Chad Keller, COO and CCO at Stringer Asset Management, a participant in the ETF Strategist Channel.
DISCLOSURES
Any forecasts, figures, opinions or investment techniques and strategies explained are Stringer Asset Management, LLC’s as of the date of publication. They are considered to be accurate at the time of writing, but no warranty of accuracy is given and no liability in respect to error or omission is accepted. They are subject to change without reference or notification. The views contained herein are not be taken as an advice or a recommendation to buy or sell any investment and the material should not be relied upon as containing sufficient information to support an investment decision. It should be noted that the value of investments and the income from them may fluctuate in accordance with market conditions and taxation agreements and investors may not get back the full amount invested.
Past performance and yield may not be a reliable guide to future performance. Current performance may be higher or lower than the performance quoted.
The securities identified and described may not represent all of the securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in the securities identified was or will be profitable.
Data is provided by various sources and prepared by Stringer Asset Management, LLC and has not been verified or audited by an independent accountant.
Index Definitions:
S&P 500 Index – This Index is a capitalization-weighted index of 500 stocks. The Index is designed to measure performance of a broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.
Russell 3000 Growth – This Index is a market capitalization weighted index based on the Russell 3000 Index and is used to provide a gauge of the performance of U.S. growth stocks. The Russell 3000 Growth Index includes companies that display signs of above average growth.
Russell 3000 Value – This Index is a market capitalization weighted index based on the Russell 3000 Index and is used to provide a gauge of the performance of U.S. value stocks. The Russell 3000 Value Index includes companies that display lower price-to-book ratios and lower expected growth rates.
MSCI EAFE Growth Index – This Index captures large and mid-cap securities exhibiting overall growth style characteristics across Developed Markets countries around the world, excluding the US and Canada. The growth investment style characteristics for Index construction are defined using five variables: long-term forward EPS growth rate, short-term forward EPS growth rate, current internal growth rate and long-term historical EPS growth trend and long-term historical sales per share growth trend.
MSCI EAFE Value Index – This Index captures large and mid-cap securities exhibiting overall value style characteristics across Developed Markets countries around the world, excluding the US and Canada. The value investment style characteristics for Index construction are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield.
MSCI EM Growth Index – This Index captures large and mid-cap securities exhibiting overall growth style characteristics across 24 Emerging Markets (EM) countries. The growth investment style characteristics for Index construction are defined using five variables: long-term forward EPS growth rate, short-term forward EPS growth rate, current internal growth rate and long-term historical EPS growth trend and long-term historical sales per share growth trend.
MSCI EM Value Index – This Index captures large and mid-cap securities exhibiting overall value style characteristics across 24 Emerging Markets (EM) countries. The value investment style characteristics for Index construction are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield.