World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search

 


To 1,500 and beyond?


On January 30 (January 31 in Asia Pacific), Russell Investments’ Global Head of Investment Strategy Andrew Pease wrote a new blog post titled, “To 1,500 and beyond?” on the market’s recent run and the factors that could cause a reversal.

January 31, 2013

To 1,500 and beyond?
By Andrew Pease, Global Head of Investment Strategy

“It’s only the end of January and the market has already broken through our year-end S&P 500® Index target of 1,500. This doesn’t make us bearish, but it does make us cautious. We still expect equities to outperform bonds over the medium term, but shorter-term, it’s worth remembering that markets move in cycles of optimism and pessimism,” writes Russell’s Global Head of Investment Strategy Andrew Pease.

He continues, “As investors have pursued their real goals, they have been riding in a risk-on/risk-off yoyo for the past couple of years where some of the biggest mistakes may have been buying on optimism and selling on pessimism. And although we don’t think there are indicators on investors’ dashboards currently flashing ’SELL’ there are warning signs reminding us that the near-term fundamentals look fully priced into current equity market levels.”

Pease outlines 5 key factors in the market’s strong run so far in 2013, as well as four significant factors that could cause a reversal.

Ultimately, Pease writes that, “Our bottom line is that we think equity markets are fully valued and a lot of the upside risks have now been priced in. Markets move in cycles and there are enough warning signs to suggest investors are becoming overly optimistic. Longer-term, we expect equities to outperform bonds, but for now we are cautious about chasing the current rally. We want to avoid the traps of buying and selling on market sentiment in an ongoing risk-on/risk-off environment.”

To see the entire blog post, visit: http://conversation.russell.com/. Andrew Pease and Russell’s team of investment strategists are also available for interviews to provide more color around these perspectives.
# # #

Investing in capital markets involves risk, principal loss is possible. There is no guarantee that the stated outcomes will be met.

This document contains forecasting or other forward-looking information; the information is inherently uncertain and may be incorrect.

These views are subject to change at any time without notice based upon market or other conditions and are current as of the date at the top of the page. It is made available on an “as is” basis. Russell Investments does not make any warranty or representation regarding the information. While all material is deemed to be reliable, accuracy and completeness cannot be guaranteed.

This is not an offer, solicitation or recommendation to purchase any security or the services of any organization.

Nothing in this presentation is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The contents of this presentation are intended for general information purposes only and should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional concerning your own situation and any specific investment questions you may have.

Manufacturing Purchasing Managers’ Index (PMI) is used to measure the level of diffusion based on surveyed purchasing managers in the manufacturing industry.

VIX is a trademarked ticker symbol for the Chicago Board Options Exchange Market Volatility Index, a popular measure of the implied volatility of S&P 500 Index options. It represents one measure of the market's expectation of stock market volatility over the next 30 day period.
The S&P 500® Index is an index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P 500® Index is designed to be a leading indicator of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe.

Companies included in the index are selected by the S&P Index Committee, a team of analysts and economists at Standard & Poor's. The S&P 500® is a market value weighted index - each stock's weight is proportionate to its market value.

Indexes returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.
Russell Investment Group, a Washington USA corporation, operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.

Copyright © Russell Investments 2013. All rights reserved.

Corp- 8236 First Used: January 2013

Founded in 1936, Russell Investments is a global asset manager that serves institutional investors, financial advisers and individuals with multi-asset solutions in more than 40 countries.

© Scoop Media

 
 
 
 
 
World Headlines

 

Amnesty: Campaign Mass Hangings And Extermination At Syrian Prison

A chilling new report by Amnesty International exposes the Syrian government’s calculated campaign of extrajudicial executions by mass hangings at Saydnaya Prison. Between 2011 and 2015, every week and often twice a week, groups of up to 50 people ... More>>

Russian Hack Job?: White House - Actions In Response To Russian Malicious Cyber Activity & Harassment

President Obama authorized a number of actions in response to the Russian government’s aggressive harassment of U.S. officials and cyber operations aimed at the U.S. election in 2016. More>>


Israel/Palestine: Michael Field - Background To How Israel Nearly Went To War With New Zealand

New Zealand and Senegal managed to get the United Nations Security Council to pass resolution 2334 which said Israel’s settlements in Palestinian territory violate international law and undermine a two-state solution in Israel's conflict with Palestine. More>>

ALSO:

US Indigenous Affairs: How President Obama Has Protected Our Sacred Land

I am very proud to be both Navajo and American. As the President of the Navajo Nation, I’ve dedicated my life to ensuring that, as a Navajo, my story -- and our stories -- are part of our collective American history. Today, I want to share one of those stories with you. More>>


Binoy Kampmark: The Berlin Truck Attack And The Refugee Question

The hard-nosed neo-cons were certainly showing little interest in linking arguments, examining evidence, or even considering elementary logic in the aftermath of the Berlin truck attack near the Gedächtniskirche. With the bodies fresh in the morgue, former US ambassador to the United Nations, John Bolton, peered into the mind of the everyday German, and found teeth chattering fear. More>>

Demonetisation: Gordon Campbell On India’s Huge Socio-Economic Experiment

Without much coverage at all in the West, India has just been engaged for the past few weeks in one of the world’s biggest socio-economic experiments since the Cultural Revolution in China. More>>

Gordon Campbell: On The Death Of Fidel Castro

New Zealand likes to think we played our part – via the 1981 Springbok tour – in bringing the apartheid regime in South Africa to an end… Jacob Zuma treated the death of Fidel Castro at the weekend as an occasion to pay a heartfelt tribute to the thousands of Cuban soldiers who travelled across the world to inflict the first significant military defeat on the forces of white supremacy. More>>

ALSO:

Get More From Scoop

 
 
 
 
World
Search Scoop  
 
 
Powered by Vodafone
NZ independent news