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Nuveen Observes Equities Sag as Political Optimism Returns to Earth

Posted by WrapManager's Investment Policy Committee
April 5, 2017

Where Can Investors Find Value in These Markets?

Stocks experienced their largest one-week decline since the election, as the S&P 500 Index fell 1.4%.¹ Most losses occurred on Tuesday when it became clear that the Republican health care plan was facing trouble, signaling that President Trump’s pro-growth economic agenda could falter. Small cap stocks, financials and industrials fared the worst last week, with utilities and REITs gaining ground. Treasury prices rallied for a second straight week, while the U.S. dollar fell for the third week.

Read an excerpt of the complete commentary below, or download the entire investment commentary as a PDF.

Key Points:

Republicans’ setback in passing health care reform could signal trouble for tax cuts and infrastructure spending plans.
Optimism over pro-growth legislation may fade, but the U.S. economy remains solid.
We think stocks may be poised for a correction, but we still support a pro-growth investment stance.

Additionally, we may see a leadership transition from U.S. to non-U.S. equity markets. U.S. stocks have outperformed their international counterparts for years, but that trend may be changing. As non-U.S. economic and earnings growth improves, the leadership baton may be passing to other markets.

Nevertheless, we remain relatively upbeat about the state of the U.S. economy. Growth trends and sentiment began improving last summer. We believe fundamentals remain solid, including the labor market, manufacturing, housing, consumer spending and business investment. Even if sentiment drops a notch or two due to fading political optimism, we expect economic growth will remain on track.

Download Nuveen Asset Management's latest commentary, or read their recommendations on where to find value in 2017.

To learn more about Nuveen Asset Management and other Money Managers, give us a call at 1-800-541-7774 or contact us here to speak with one of WrapManager's Wealth Managers.

Download Nuveen Asset Management's Full Commentary

Research Money Managers Get Free Research Reports on Nuveen Asset Management

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Source:

1. Morningstar Direct and Bloomberg, as of 3/24/17

Economic/Market Outlook Nuveen Asset Management Money Manager Commentary

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