Wealth Management Blog | WrapManager

Lord Abbett: Investing in Dividend Payers and Growers

Posted by WrapManager's Investment Policy Committee

December 26, 2016

We continue to believe investors will be well-served to focus on dividend growth.

As bond yields begin to compete with equities, we recommend an ecumenical approach to equity income and growth in dividends.

One of the major impediments to using stocks for yield has been the earnings recession over the last five quarters. The continuation of that trend would have undermined the stability of the dividend payout.

The market, however, has now withstood the effects of a stronger dollar on multinational earnings and withstood the energy sector’s adjustment to oil at $50 per barrel. And the S&P 500 is finally growing earnings again, year over year.

Read on for a summary of their analysis, or view the entire document here.

BlackRock Update November 2016

December 5, 2016

U.S. equity indexes hit records; U.S. dollar index surges to nearly 14-year highs. Richard Turnill, BlackRock’s Global Chief Investment Strategist, summarizes the week highlights news to watch in the week ahead. Read an excerpt of his weekly commentary below, or download the complete commentary as a PDF. [+] Read More

Lord Abbett 2017 Global Investing Outlook

November 21, 2016

How Policy and Politics Shape the Global Outlook for 2017 As the dust settles from the U.S. presidential election, what might investors expect in the coming year? New U.S. leadership working with a Republican-unified Congress likely will have a meaningful impact on U.S. investment values, especially if legislation involving infrastructure spending, repatriation of U.S. corporate foreign cash, and tax reform become early priorities in 2017. Just as influential will be macro factors that weigh on global growth and interest rates. The uncertainties of the “Brexit” process, as the United Kingdom negotiates its separation from the European Union (EU), the related tilt toward protectionism in many nations, the pursuit of currency weakness by major non-U.S. economies, and continued “lower for longer” interest-rate policy should combine to support interest in U.S. investments. Differences between the U.S. economy and many advanced economies with regard to monetary policy, currency movement, and economic growth may define investor preferences among many asset classes in 2017. Here, we survey what 2017 may bring for major global economies—and key U.S. investment categories. Read on for a summary of their analysis, or view the entire document here. [+] Read More

BlackRock: Trump's Impact on the Stock Market

November 14, 2016

Donald Trump’s unexpected election win points to uncertainty ahead. Donald Trump’s unexpected election victory brings market and policy uncertainty in the short run. Trump’s agenda lacks detail and departs from the Republican Party tradition on trade, security and entitlements. Tapping into a backlash against the Washington status quo, he has often appeared at war with his own party and has surrounded himself with less-known advisors. We expect an initial sell-off in risk assets and flight to perceived safe havens. We see emerging markets as particularly vulnerable due to their reliance on exports and investor sentiment. We expect steeper yield curves and see health care stocks outperforming due to likely reduced regulation under Trump. Read on for an excerpt of Blackrock Investment Institute's commentary, or view the entire document here. [+] Read More

Blackrock: Impact of the 2016 Election on Investing

November 3, 2016

Unusually consequential election challenges the post-crisis status quo. The 2016 U.S. election campaign has been unique in many ways, but the underlying dynamics are not. These are partly driven by widening income inequality across the world, in our view, a trend that has accelerated after the financial crisis and subsequent policy responses. Related is a growing perception that the benefits of trade and globalization have only accrued to a few. Whoever moves into the White House will have to address these issues, and we could see fiscal expansion directed at improving infrastructure and measures aimed at redistributing prosperity. We expect similar themes and outcomes to play out in key European elections next year. Read on for an excerpt of Blackrock Investment Institute's commentary, or view the entire document here. [+] Read More

Lord Abbett: Implications of Presidential Candidates' Economic Policies

October 3, 2016

The S&P 500 Index has correctly predicted 19 of the past 22 presidential elections and every election since 1985... Amid unprecedented political polarization, lackluster growth, persistently low interest rates, and mounting geopolitical tensions, investors are grappling with allocation decisions as what may be the most contentious presidential election in their lifetime approaches. Politics aside, the next president will be pressed to boost growth, trade, innovation, and jobs in a slow economy transformed by globalization and technology. Note: The purpose of this special report is to help investors evaluate the potential investment implications of the presidential candidates’ most salient economic policies. It is not intended to take sides but rather to shed light on how, historically, markets and sectors have performed before and after past elections, and how various interests might be affected by current proposals, which might prompt consideration of the possible investment decisions to be made. Read on for an excerpt of Lord Abbett's engaging commentary, or view the entire document here. [+] Read More

BlackRock Weekly Update September 2016

September 12, 2016

September interest rate increase looks less likely... Richard Turnill, BlackRock’s Global Chief Investment Strategist, gives us the week in review. Turnhill was previously Chief Investment Strategist for BlackRock’s fixed income and active equity businesses, and has also led the Global Equity investment team. Read an excerpt of his weekly commentary below, or view the entire weekly investment commentary here. [+] Read More

The ‘Bear Market’ Chatter is Rising: What Should You Do?

September 8, 2016

If you’re starting to get the feeling that the mutterings of a next bear market are growing, it’s because in many senses they are. A recent Bloomberg article noted that some high profile market forecasters—among them Goldman Sachs and Bill Gross—were raising warning signs about rising stocks and bonds. [+] Read More

Polen Capital Reports 2Q 2016 Performance

August 23, 2016

We have a clear investment discipline and a clear compass... After delivering a strong first quarter performance, Polen Capital Management's Focus Growth Portfolio returned -2.62% gross of fees in second quarter 2016. The Russell 1000 Growth and S&P 500 indicies returned 0.61% and 2.46% respectively. Read on for an excerpt of Polen Capital's 2Q 2016 commentary, or view the entire document here. [+] Read More

BlackRock Weekly Update August 2016

August 9, 2016

The worst of the U.S. profits recession appears to be over... Richard Turnill, BlackRock’s Global Chief Investment Strategist, gives us the week in review. Turnhill was previously Chief Investment Strategist for BlackRock’s fixed income and active equity businesses, and has also led the Global Equity investment team. Read an excerpt of his weekly commentary below, or view the entire weekly investment commentary here. [+] Read More