As market volatility continues to be a focus point for investors, money managers are keeping a close eye on key market indicators. This week we share the market commentaries presented by Robert C. Doll, CFA, the Senior Portfolio Manager and Chief Equity Strategist at Nuveen Asset Management, and Richard Turnill, the Global Chief Investment Strategist at BlackRock. While their analyses highlight many of the same economic and market factors, their interpretations have distinct flavors. Doll feels that while the “equity markets have been buffeted by a number of credible threats so far in 2018,” it “shouldn’t be enough to actually cause a bear market,” yet, “these risks will need to ease before stocks can regain their footing.” Interestingly, Turnill feels that “the market environment in 2018 has returned to a more ‘normal’ mix of lower returns and higher volatility,” which “reflects rising economic uncertainty and less room for growth to exceed expectations,” but should not “spell the end of the equity bull market, now in its ninth year.” Continue reading for a more detailed analysis of the current market from both Nuveen Asset Management and BlackRock Investment Institute. [+] Read More

Qualified charitable distributions (QCD) are poised to become even more popular under the new tax law. While the Tax Cuts and Jobs Act (TCJA) generally doubled the standard deduction, while eliminating many itemized deductions, financial advisors will want to update their clients on the potential tax-saving benefits of qualified charitable deductions (QCDs) now that they have been made permanent. Remember that a charitable contribution is itself an itemized deduction, so most taxpayers will no longer receive the full deduction value—unless all other itemized deductions exceed the standard deduction amount. In other words, far fewer taxpayers will itemize, thus fewer taxpayers will be able to take advantage of the deduction for charitable giving. [+] Read More

Are investors overly pessimistic about downside market risks? While fundamentals haven’t changed significantly, volatility has picked up recently and stocks have been trading in a broad range between their early February highs and the low established in last month’s correction. The U.S. and global economies appear on sound footing, inflation pressures appear contained, the labor market remains strong, corporate earnings are solid and interest rates have been rising only modestly. Given this divergence between our views and market behavior, we think it makes sense to focus on why we think some risks may be overstated. Read a summary of Nuveen Asset Management's weekly investment commentary below, or download as a PDF. [+] Read More

Investors look past trade risks as stocks gain ground... President Trump’s proclamation of 10 - 25% trade tariffs dominated most of the financial headlines last week, but investors looked past the negatives to bid up stock prices. The S&P 500 Index rose 3.6% last week. Half of that gain came on Friday, following a strong labor market report that showed jobs increases and stable wages. For the week, industrials, financials, technology and materials were all up over 4%, while utilities lagged. Treasury yields also rose last week in the face of stronger economic data. Read a summary of Nuveen Asset Management's weekly market review below, or download the entire investment commentary as a PDF. [+] Read More

When it comes to the current state of the US economy, it is difficult to find many problems. In fact, the data and trends appear to support the case for continued growth in the coming year – both for the economy and for corporations. Below, we dig into the data. Let’s start with the classic growth measure, GDP growth. According to the Bureau of Economic Analysis, a “second estimate” of US Real GDP growth in Q4 2017 showed an annual growth rate of 2.5%, which marked a slight but not significant drop from Q3 2017’s 3.2%. [+] Read More

Long on Short Bonds... The steady increase in shorter-maturity bond yields provides a thicker cushion against concerns around further rises in interest rates. Interest rates would need to jump more than one percentage point to wipe out a year of income in the two-year Treasury note. This is nearly double the cushion on offer two years ago – and far larger than the thin insulation provided by longer-term bonds today. We believe the short end offers relatively compelling income along with a healthy buffer against the prospects of further increases in yields. Read an excerpt of BlackRock's commentary below, or download the complete commentary now. [+] Read More

Brookmont Capital Management has been awarded a Top Guns designation by Informa Investment Solutions’ PSN manager database, North America’s longest-running database of investment managers. The Brookmont Dividend Equity Strategy was ranked as the #1 US Large-Cap Value Manager, #3 US Large-Cap Manager, and #5 US Equity Manager for the 10-year performance of the Dividend Equity Strategy. Learn more about the announcement, along with the measurement criteria used to determine the ranking, below or download the complete announcement as a PDF. [+] Read More

Stocks recover ground as the focus returns to fundamentals... Stocks rebounded last week as investors appeared to return their focus to improving economic growth and solid corporate earnings. The S&P 500 Index jumped 4.4% and experienced its best week in more than five years. While stocks remain down for the month, they are back in positive territory for the year. Volatility also declined last week as markets calmed down slightly. Treasury yields rose last week as the yield curve flattened. At one point, the 10-year Treasury yield climbed to 2.94% before declining. While we may see further market volatility, it appears the worst of the recent correction is in the rear view mirror Read a summary of Nuveen Asset Management's weekly market review below, or download the entire investment commentary as a PDF. [+] Read More

A tax overhaul in the U.S. could spill over to benefit the global economy. The U.S. tax overhaul and higher expected federal spending points to faster growth just as the expansion enters its ninth year. This represents a of sea change from U.S. fiscal policy’s long drag on growth and bodes well for the synchronized, global expansion. Read an excerpt of BlackRock's evaluation below, or download the complete commentary now. [+] Read More