A steepening crude oil futures curve paints a compelling picture for investors who are anticipating a rebound in oil prices
“Time to Buy Commodities,” blared one business headline a few weeks back, above a story detailing just how far commodities have tumbled. Indeed, I see several reasons why investors may want to consider increasing their exposure to the oil markets.Read More
Markets are calm—on the surface—but there may be more turmoil lurking underneath
The Chinese authorities have managed to calm markets for now with accommodative moves to keep the Chinese currency and local interest rates stable, following their surprise currency devaluation on Aug. 11. But Invesco Fixed Income believes there is more turmoil than meets the eye beneath the relatively calm surface of the markets.Read More
In a diversified portfolio, sometimes certain assets will sink. And that’s OK — the bigger risk lies in incorrectly timing the market.
It’s official: as of Aug. 21, the Dow Jones Industrial Average entered a correction, falling at least 10% from its latest peak.1 And at the same time, many investors took a hit to their stock portfolios as well. Does that mean investors were wrong to be invested in stocks on Aug. 21?
Not at all.
Stocks traditionally serve as the “growth engine” of a portfolio — offering investors the potential to grow their wealth through the market’s returns. That’s a critical role, and investors who abandon that potential, risk falling short of their financial goals.Read More
For the first time in almost four years, the US stock market experienced a correction. Our investment leaders weigh in on what this means.
On Aug. 21, the Dow Jones Industrial Average entered a correction — falling 10% from its most recent peak — and reminded investors what volatility looks like after almost four correction-free years.
While volatility exposes weaknesses in the market, in my opinion it also reveals the strength of high conviction managers who are skillfully navigating the market. Active management and smart beta strategies seek to surpass the “market averages” offered by traditional benchmarks — providing the potential not only for higher returns, but also for a smoother ride.
At Invesco, that’s what we seek to do for investors: Offer high conviction strategies that help people navigate volatility and achieve their financial goals.
Here, I’ve gathered opinions from several of our senior investment leaders across equities, fixed income and alternatives, discussing their view of market volatility and how it affects — or doesn’t affect — the opportunities they see.Read More
How a long-term view of risk may help investors avoid short-term regrets
China’s attempts to shore up its domestic growth through currency devaluations and aggressive monetary stimulus have unnerved many investors around the globe. As a result of this and other macroeconomic events like the drop in oil prices and the uncertainty surrounding rate lift-off in the US, equity markets have sold off sharply and volatility has spiked. On Aug. 17, the CBOE Volatility Index (VIX) was around 13; just one week later, however, it had jumped to nearly 411 – a level last seen in October 2011 during the eurozone sovereign debt crisis.Read More
Alternatives may mitigate the effects of volatility and help investors preserve wealth
The recent sharp sell-off in global equity markets has focused investors on the importance of holding diversifying investments that can help mitigate volatility and potentially cushion their portfolios during times of market stress. Given their unique nature, alternative investments are proving to be useful tools to help investors weather the current market storm.
As the chart1 below illustrates, a basket of alternatives — based on Invesco’s alternatives framework as explained in my previous blog post How to approach the alternative investments puzzle — has historically delivered equity-like returns with low levels of volatility (as measured by standard deviation) and lower maximum drawdown.Read More