Equities 2016: Opportunities, Even as Challenges Persist
A Note about Risk: The value of investments in equity securities will fluctuate in response to general economic conditions and to changes in the prospects of particular companies and/or sectors in the economy. Small-cap and mid-cap company stocks tend to be more volatile and may be less liquid than large-cap company stocks. Small-cap companies also may have more limited product lines, markets, or financial resources and typically experience a higher risk of failure than large cap companies. Mid-cap companies typically experience a higher risk of failure than large cap companies. No investing strategy can overcome all market volatility or guarantee future results.
Market forecasts and projections are based on current market conditions and are subject to change without notice. Projections should not be considered a guarantee.
Indexes are unmanaged, do not reflect the deduction of fees or expenses, and are not available for direct investment.
The Barclays Capital U.S. Aggregate Bond Index is an unmanaged index composed of securities from the Barclays Capital Government/Corporate Bond Index, Mortgage-Backed Securities Index and the Asset-Backed Securities Index. Total return comprises price appreciation/depreciation and income as a percentage of the original investment. Indices are rebalanced monthly by market capitalization.
The term “Black Swan” describes an event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult to predict. The term was popularized by Nassim Nicholas Taleb, a finance professor and former Wall Street trader.
The Consumer Price Index (CPI) measures changes in the price level of a market basket of consumer goods and services purchased by households. The CPI is a statistical estimate constructed using the prices of a sample of representative items whose prices are collected periodically.
The Federal Open Market Committee (FOMC) is the monetary policy-making body of the U.S. Federal Reserve System. The FOMC is composed of 12 members – the seven members of the Board of Governors and five of the 12 Reserve Bank presidents. The FOMC schedules eight meetings each year.
The Personal Consumption Expenditure Price Index (PCEPI) is one measure of U.S. inflation. The PCEPI measures the percentage change in prices of goods and services purchased by consumers throughout the economy. Of all the measures of consumer price inflation, the PCEPI covers the broadest set of goods and services.
The S&P 500 Index® is widely regarded as the standard for measuring large-cap U.S. stock market performance and includes a representative sample of leading companies in leading industries.
The opinions in Market View are as of the date of publication, are subject to change based on subsequent developments, and may not reflect the views of the firm as a whole. The material is not intended to be relied upon as a forecast, research, or investment advice, is not a recommendation or offer to buy or sell any securities or to adopt any investment strategy, and is not intended to predict or depict the performance of any investment. Readers should not assume that investments in companies, securities, sectors, and/or markets described were or will be profitable. Investing involves risk, including possible loss of principal. This document is prepared based on the information Lord Abbett deems reliable; however, Lord Abbett does not warrant the accuracy and completeness of the information. Investors should consult with a financial advisor prior to making an investment decision.