The Latest Market Commentary From Our Strategists

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Daily Blog

Friday, February 23, 2018

The recent market volatility was especially concerning for retirees or near retirees who don’t have the benefit of a long time horizon to recover from market downturns. Financial advisors caution retirees to resist temptation to liquidate stocks after a large drop in the market because it prevents the ability to recover losses when the market bounces back. Advisors also suggest retirees minimize discretionary withdrawals during market meltdowns to mitigate sequence of returns risk. Investors need to create a reliable source of income to cover their fixed living expenses – a kind of paycheck that retirees can count on for what could be 30 years in retirement. Unfortunately, while social security is a retirement paycheck, it most likely will not cover all fixed living expenses. If fixed expenses are covered, variable or discretionary expenses like travel can be invested more aggressively for growth in equities without as much risk of derailing retirement. And by the way, the market has bounced back. The S&P500 is up more than 1.5% YTD and corporate earnings growth continues to be revised upwards for 2018 as the pro-business tax policies unleash economic growth. Please see an example of the risk of sequence of returns on page 91 of the Global Perspectives Book.

In Case You Missed It: Watch what Doug Coté and Karyn Cavanaugh had to say during their February 22nd Facebook Live Event on Voya’s Facebook page.

Weekly Commentary & Statistics

Tuesday, February 20, 2018

U.S. equities snapped back during a period peppered with mixed economic data. Housing starts for January jumped 9.7%, the largest gain since October 2016.

Monthly Commentary & Outlook

December 2017

In our view, the economy is experiencing a marked shift back to free-market capitalism, rewarding private risk-taking. That inspires growth.

  • Pro-business tax cuts are the icing on the cake of a strong global economy
  • The United States, China and Europe are the “big three” that will drive global growth
  • Amid market complexity, it is best to focus on the ABCs of economic growth
  • Productivity to regain its mojo, even as inflation struggles to regain its luster
  • Currency stability of the big three is the base case but tail risk might wag this dog
  • Global diversification will dominate U.S.-centric investing for a second straight year

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