Monthly Commentary

Main content

November 2011

Market fundamentals are showing signs of life after global risk reached crisis levels in the 3rd quarter. Readers who’ve been following ING Global Perspectives commentary were able to ride along with an avalanche of positive economic data to benefit from one of the best Octobers in history.

In this month’s commentary, ING Chief Market Strategist Douglas Cote shows how October’s rally highlights the benefits of a disciplined quarterly rebalancing program. Rebalancing enables investors to capitalize on market volatility by forcing them to allocate more to their underperforming assets and less to their best-performing ones (buy low and sell high, in other words), when volatility often encourages the opposite

View multimedia version of this video (flash required)

October 2011

September’s headlines were ominous, ranging from near-certain Greek default to credit downgrades of sovereign banks. For those investors who have trimmed back and become defensive ING Global Perspectives now advocates a return to full sail with a fully invested, globally diversified portfolio.

In this month’s commentary, ING Chief Market Strategist Douglas Coté argues the global macro risks that have bedeviled markets for the past several months are secondary to bottom-up fundamentals — corporate profits, in particular. Although the European, U.S. and developed world debt crises are far from over, they are moving toward containment. Ultimately, successful investing demands a choice between prudent risk control and outright risk avoidance.

View multimedia version of this viedo (flash required)

September 2011

The volatility of August presented a great case for something ING Global Perspectives has long argued: real, not gamed, diversification.

As market leadership changed hands like a game of musical chairs, the benefits of broad, globally diversified portfolios became very real to investors. In this month’s commentary, ING Chief Market Strategist Douglas Coté, CFA provides more tips for Weathering Storms in Uncharted Territories. He looks at recent events like the credit downgrade, Euro contagion, and the downturn in some U.S. economic data in light of his earlier 2011 forecast. His take: catalysts for growth are many and significant, and these fundamentals will drive the longer-term performance of the market.

View multimedia version of this video (flash required)

August 2011

Today’s global market declines are further support for the "trimming of the sails" we advocated last week. Here’s a current commentary by Doug Coté, CFA, ING Investment Management Chief Market Strategist, that outlines the factors driving today’s markets:

  • Deteriorating economic data
  • Fear of systemic risk spreading from peripheral Europe
  • Lack of a significant, coordinated policy response from central banks or governments

None of this is unexpected. Until Europe can get serious about addressing its debt problems and moribund economic growth, investors should remain vigilant.

August 2011

Wide recent swings in the market are tough for investors to stomach. ING Global Perspectives was designed to help put unpredictable market moves into context at times like this, to help convert fear into a longer-term view.

Our longer-term view remains consistent: fundamentals drive equity markets, and by those measures, corporations continue to exceed all expectations. But such nuances are often lost in full scale panic moves in and out of the market. That’s why we advocated a small tick backwards as a prudent and proactive measure in our recent special edition commentary.

August 2011

Traditionally, fireworks are lit on the Fourth of July to commemorate America’s hard-fought independence. This July, however, political pyrotechnics dominated the landscape as America struggled to stave off a looming default that would put its financial independence in jeopardy.

July 2011

In this month's issue, ING Chief Market Strategist Douglas Coté, CFA looks ahead to a summer and/or fourth quarter rally based on recent surges in manufacturing, retail sales, durable goods orders, global trade and corporate profits.

June 2011

"Sell in May and walk away" goes the hoary cliché. In this month’s issue, ING Chief Market Strategist Douglas Coté, CFA argues that this strategy may seem good in theory, but is bad in practice. The equity pull-back this month, as Treasuries roared ahead, is a short but genuine demonstration of how diversification can help investors be successful. Keep the focus on fundamentals: equity valuations are now well below 1999 levels in the midst of a synchronized global expansion.

View multimedia version of this video (flash required)

May 2011

It was downright heretical when we pointed out in a May 24, 2010 article titled "Much Ado About the Euro" that not only were we in the midst of a "synchronized global expansion", but the bond market was pricing risk so astonishingly low that it appeared to be dismissing any notion that a crisis existed at all. What a difference a year makes!

May 2011

In this month's issue, ING Chief Market Strategist Douglas Coté, CFA lists the reasons why Wall Street may be missing the bull curve: an “absolute blowout” for 1Q earnings, a tech boom, a comeback in manufacturing, all-time high consumer spending levels, blistering M&A pace, trade nearing an all-time high, etc. Download the PDF for more bullish indicators.

View multimedia version of this video (flash required)


Footer content