Listen to a replay of our first quarter 2019 Litman Gregory research call. Topics covered (among others): the equity rebound, conditions in Europe, floating-rate loans, managed futures, and emerging-market bonds. The presentation slides are available below.
Across the board, it was an extremely difficult year to make money in the financial markets, with almost every asset class and financial market down for the year. The contrast with 2017’s strong market results is also striking—and serves as a useful reminder of the unpredictability of markets.
Advisors are invited to hear the replay of Litman Gregory’s October 18 Research Call webinar. This quarter we discuss our equity market views, the value of alternative strategies, our response to Howard Marks’s recent memo, Oakmark and Cove Street funds.
In 2018, US stocks have strongly outperformed emerging-market (EM) stocks, but this kind of divergence is not unusual. Still, given the negative headlines surrounding emerging markets, we highlight several points this quarter that indicate EM stocks remain attractive and their long-term growth outlook remains intact. On the other hand, US stocks look expensive and there are reasons to think the near- and medium-term outlook for them is not so rosy. They represent a risk to our portfolios, which is why we maintain a meaningful underweight to US stocks.