Russell Investments’ market strategists maintain a moderately positive medium-term outlook in their latest quarterly report, even as markets navigate near-term risks from ongoing Covid-19 concerns and the U.S. federal elections in November. The team’s cycle, value and sentiment investment decision-making process at the beginning of the fourth quarter scores global equities as slightly expensive, sentiment as neutral and the cycle as supportive. While the team sees aspects of the new economic cycle as already appearing decidedly late cycle in terms of valuation, they expect the early-cycle economy will trump later-cycle valuations for the next year or two.
“Overheated technology stocks and U.S. election uncertainty are near-term headwinds, but positive Covid-19 vaccine developments, dovish central banks and an ongoing economic recovery should allow equity markets to push higher,” said Andrew Pease, global head of investment strategy at Russell Investments. “We believe that the global recovery from the recession will lead to a long period of low-inflationary growth, supported by monetary and fiscal stimulus.”
The team also:
For more information, the full 2020 Global Market Outlook – Q4 update is available here.
About Russell Investments
Russell Investments is a leading global investment firm providing tailored solutions and services to institutions and individuals through financial intermediaries. Russell Investments is dedicated to improving people’s financial security, leveraging an 84-year client-centric heritage rooted in investment innovation. Since 1985, for example, with the launch of our first tax-exempt bond fund, the firm has been helping investors grow after-tax wealth. Russell Investments is the fourth-largest adviser in the world with $284.8 billion in assets under management (as of 6/30/2020) and $2.5 trillion in assets under advisement (as of 12/31/2019) for clients in 32 countries. Headquartered in Seattle, Washington, Russell Investments operates through 19 additional offices in major financial centers such as New York, London, Tokyo and Shanghai.
Forecasting represents predictions of market prices and/or volume patterns utilizing varying analytical data. It is not representative of a projection of the stock market, or of any specific investment.
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Steve Claiborne, 206-505-1858, [email protected]