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The Investment Policy Committee (IPC) defines and upholds Edward Jones investment philosophy, which is grounded in the principles of quality, diversification and a long-term focusThe IPC meets regularly to talk about the markets, the economy and the current environment, propose new policies and review existing guidance — all with your financial needs at the centerThe IPC members — experts in economics, market strategy, asset allocation and financial solutions — each bring a unique perspective to developing recommendations that can help you achieve your financial goalsLearn MoreAccording to Chris Hyzy, this pattern will likely hold true following the current election, thanks to the dynamic nature of the U
S economy “This ‘innovation machine’ continues to plow through most every challenge, and long-term opportunities for investors run wide and deep,” Hyzy says “What's most important is creating and sticking to a disciplined investment strategy designed to achieve your long-term goals
”The markets tend to care more about profits than politics, notes Chris Hyzy, Chief Investment Officer for Merrill and Bank of America Private Bank That said, he adds, “there’s no question that some of the policy changes being considered have the potential to benefit certain sectors and asset classes more than others“ Still, he continues, “it’s important to remember that there are checks and balances in both the markets and government as money moves around the globe Change is a constant, but we continue to believe that the market drivers are already in place for another extension of the bull market cycle over the next five to 10 years
”Actually, the statement is true Even though China is the world’s largest carbon dioxide emitter,2 at 29%, China also has the largest share of global renewable energy consumption, as well as global capacity in wind (41%) and solar (37%) power generation, says the Energy Institute Statistical Review of World Energy China’s drop in economic growth last year was one of many factors behind the underperformance of the alternative energy sectorAdvertising Practices We strive to provide you with information about products and services you might find interesting and useful
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US stocks remained higher on Wednesday afternoon, with the S&P 500 breaching the 5,300-level for the first time ever, boosted by a surge in megacap technology sharesThe S&P 500 information-technology sector was rising 2
3% on Wednesday It was the best performing sector in the S&P 500 index, on pace to post its new record close, according to Dow Jones Market DataThe S&P 500 industrials and financials sectors were also within 1% of their all-time highs set on March 28, according to Dow Jones Market Data (see chart above)The S&P 500 consumer-discretionary sector was the only sector trading in the red on Wednesday afternoon, off 0
2%, according to FactSetInvesting involves risk There is always the potential of losing money when you invest in securities Past performance does not guarantee future results
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US Trust Company of Delaware is a wholly owned subsidiary of Bank of America Corporation7 months agoOne cooler CPI report is not enough for the Fed to cut rates, portfolio manager saysByVivien Lou ChenMore financial-market participants are coming out with doubts that Wednesday's consumer-price index for April will be enough to move the needle when it comes to the possibility of interest-rate cuts
Alabama-based portfolio manager and fixed-income analyst John Luke Tyner of Aptus Capital Advisors, which manages $425 billion in assets, said we'd caution that it is just one print (that is still notably above target) coming off the back of three hot prints to start the yearIn an email, Tyner wrote that we'd suspect the Fed will need to continue to see the downward trend in inflation before touting rate cuts He added: All in all, one good print in the midst of several bad will help calm markets, but likely does little in terms of significantly increasing the likelihood of faster/ more cuts
View MoreShareMore to come “This is the start of a rate cut cycle Look for two additional cuts in 2024, followed by several more in 2025,” says Matthew Diczok, head of Fixed Income Strategy for the Chief Investment Office (CIO) “While these should help bring inflation to the Fed’s 2% target by early 2026, we don’t believe the Fed is worried about hitting 2% exactly, as long as they see a continuing disinflationary trend
The Fed is more concerned with not slowing the economy too much” The outlook for stocks “When rates begin to fall, that has generally been positive for equities over the following 12 months,” Hyzy notes Industries such as housing, automotive and financials should benefit as consumers find borrowing less expensive, Diczok adds
And lower credit costs could also keep spending strong across the consumer sector “Investors may also find potential opportunities in dividend-paying stocks, which have historically done well as rates decline,” Hyzy suggests While history doesn’t ensure future results, top dividend-payers in four previous cutting cycles beat the S&P 500 index by 73% one year after the first cut, and 12% after three years
25 billion in assets, said we'd caution that it is just one print (that is still notably above target) coming off the back of three hot prints to start the year.In an email, Tyner wrote that we'd suspect the Fed will need to continue to see the downward trend in inflation before touting rate cuts. He added: All in all, one good print in the midst of several bad will help calm markets, but likely does little in terms of significantly increasing the likelihood of faster/ more cuts.View MoreShareMore to come. “This is the start of a rate cut cycle. Look for two additional cuts in 2024, followed by several more in 2025,” says Matthew Diczok, head of Fixed Income Strategy for the Chief Investment Office (CIO). “While these should help bring inflation to the Fed’s 2% target by early 2026, we don’t believe the Fed is worried about hitting 2% exactly, as long as they see a continuing disinflationary trend. The Fed is more concerned with not slowing the economy too much.” The outlook for stocks. “When rates begin to fall, that has generally been positive for equities over the following 12 months,” Hyzy notes. Industries such as housing, automotive and financials should benefit as consumers find borrowing less expensive, Diczok adds. And lower credit costs could also keep spending strong across the consumer sector. “Investors may also find potential opportunities in dividend-paying stocks, which have historically done well as rates decline,” Hyzy suggests. While history doesn’t ensure future results, top dividend-payers in four previous cutting cycles beat the S&P 500 index by 7.3% one year after the first cut, and 12% after three years.2 Another potential opportunity: Small cap stocks. “Lower rates improve access to capital, and small companies have recently regained earning momentum after several disappointing years,” he says.
