By Roman Chuyan, CFA
Our Equity Model’s 6-month forecast for the S&P 500 turned significantly negative on economic factors and record market valuation.
Along with our Short-Term Risk model, this dictates defensive positioning.
Our
6-month Equity Model turned significantly negative at ‑7.9% in January on economic factors. The economic component of the model dropped sharply and turned negative this month, to -4.2% (see Market Outlook). In addition, market valuation has risen to extremely overvalued levels.
Congress passed over $3 trillion of deficit spending in 2020 to fight the effect of the pandemic. GDP rebounded sharply in Q3 and ended the year down less than 4%, but this rebound was mostly a result of the stimulus money. Consumer sentiment stayed at recession levels, suggesting that people don’t feel much better off financially:
Press release content from PR Newswire. The AP news staff was not involved in its creation.
Newfleet Asset Management and Virtus ETFs Introduce Actively Managed Securitized Debt ETF
February 10, 2021 GMT
(PRNewsfoto/InfraCap MLP ETF)
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The Virtus Newfleet ABS/MBS ETF seeks to generate income by investing primarily in short-duration, investment-grade securitized debt across asset-backed securities (ABS) and mortgage-backed securities (MBS), including commercial and residential MBS. By utilizing Newfleet’s disciplined, time-tested investment process and rigorous risk management approach, the actively managed ETF expects to invest in asset-backed and mortgage-backed securities with competitive yield and current income across undervalued areas of securitized credit markets.
Financial Times & Wilshire Announce Collaboration to Create Innovative Indices, Analytics and Data Sets for Investors
Exclusive collaboration leverages the Financial Times global digital audience and Wilshire s data, analytics and index capabilities to benefit Financial Times readers and investors worldwide
A worldwide license of the FT mark will see the Wilshire 5000 enhanced and rebranded FT Wilshire 5000
Collaboration sees strengthening of the Wilshire Leadership Team to support its new growth vision
The Financial Times, the most trusted global financial media brand and a pioneer in digital journalism, and Wilshire, a global investment, technology and advisory company today announce a far-reaching collaboration to develop new, innovative and more relevant indices, metrics, data sets and analytics to serve and inform investors worldwide.