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Looking Ahead & Other Observations

September 25, 2012

Investors should maintain a long-term focus on the middle of the investment risk spectrum, where the most attractive risk-reward opportunities lie.
-Jason Pride, director investment strategies, Glenmede

Investment Themes
. Protect portfolios from near-term economic sluggishness
     o Favor a protective but not overly defensive asset mix with some cash and core fixed income
. Maintain the middle: Investors should maintain a long-term focus on the middle of the investment risk
spectrum, where the most attractive risk-reward opportunities lie.
     o Favor high quality and/or dividend growth within equities
     o Take credit risk: high yield bonds, municipal credit, and global bonds
     o Utilize alternative risk control: secured options and absolute return strategies
. Position to benefit from long-term growth opportunities
     o U.S. manufacturing renaissance and emerging market consumer growth
. Maintain some protection against unexpected future inflation and currency devaluation:
     o Global fixed income and broad/active commodity basket

 

Also Discussed:

  • Central Banks to the Rescue: How Long Will the Optimism Last?
  • Europe: Deleveraging is a Marathon, Not a Sprint
  • Next Event: The U.S. Fiscal Cliff and a Heated Election Season

 

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