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Blackrock: Impact of the 2016 Election on Investing

Posted by WrapManager's Investment Policy Committee

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.

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Investment Plan Portfolio Strategy Blackrock Inc Election Commentary

Lord Abbett: Implications of Presidential Candidates' Economic Policies

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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

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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

“Phasing Out”: The Art of the Gradual Retirement

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Many retirees or those pondering retirement know: sometimes it’s difficult to let go. After spending decades being hard-wired to go to work week-in and week-out—and in many cases enjoying it—just retiring cold turkey can be a lot to process. That’s why many people opt to “phase out” instead, incrementally weaning themselves away from work and towards retirement. Call it, a “gradual retirement.” [+] Read More

Polen Capital Reports 2Q 2016 Performance

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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

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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

401(k) Diversification– Doug's Quiz Corner

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Quizmaster, Doug Hutchinson, presents his quiz for the month. This time the topic is 401(k) diversification. Keep reading to find out if Gina is going down the right path with her strategy.  [+] Read More

BlackRock Commentary Midyear 2016

July 12, 2016
With half the year over, BlackRock's commentary delivers an overview for the rest of the year. Read the excerpt here, or download the full BlackRock Midyear 2016 Golobal Investment Outlook report.  Markets are torn between anxiety over the fallout from the UK’s vote to exit the European Union and the prospect of a strengthening U.S. economy. Downside risks to global growth point to a U.S. Federal Reserve on hold — and reinforce our view of low global interest rates for long. Our key views: Outlook Forum: At a mid-June gathering of some 90 BlackRock portfolio managers and executives, we had vigorous debates on the outlook for a rebound in U.S. inflation, the prospect of a turnaround in beaten-down emerging markets (EMs) and the woes afflicting the global financial sector. Themes: We updated our three themes for this year: 1) We are living in a low-return world; 2) Monetary policy has been a key driver of asset prices — but its effectiveness looks to be waning; 3) We see more volatility ahead as Brexit-related anxiety weighs on Europe’s economy and the business cycle matures. Risks: We see geopolitical uncertainties and a renewed rise in the U.S. dollar as near-term risks, and populism as a medium-term challenge for trade, growth and markets. A potential surprise: a rally in risk assets prompted by investors shifting out of cash and low-yielding assets in search of higher returns. Markets: We have turned more positive on most fixed income due to elevated geopolitical risks and easy monetary policy in a low-growth world. We like income, including investment-grade credit and EM debt. We are cautious on equities, particularly in Europe, given the turn in risk sentiment and poor profit growth. We prefer dividend growers and quality companies. We like gold as a portfolio diversifier. To learn more about BlackRock 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 Full Commmentary Here Get Free Research Reports about Blackrock Inc [+] Read More

Can You Improve Returns by Checking Your Investment Portfolio Less?

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Maybe! Recent research from Columbia Business School suggests that it’s possible. Researchers found that checking an investment or retirement portfolio too frequently could result in lower returns.* That’s because investors who are overly driven by day-to-day fluctuations will often feel more emotionally compelled to make changes, which may ultimately veer them off course. The study cited that investors making decisions too often may “rebalance their holdings to get out of stocks that are dropping and miss out when they go back up.” [+] Read More

Factors in Bond Performance: Time or Interest Rates?– Doug's Quiz Corner

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