With the growing number of model portfolios available, selecting the right strategy can be a challenging task. A comprehensive due diligence framework may serve as a guide when choosing a model portfolio and distinguishing one provider from another.
State Street Global Advisors
116 posts
Investors are on edge, eager to protect their unexpected gains, and are anxiously awaiting the titular recession that may or may not arrive this year. Most economists expect a recession in the next 12-18 months.
In the event of a non-resolution, market reactions could continue to exude extraordinary volatility with very rapid moves in short-term rates and sharp drawdowns in equities, commodities, and other risk assets.
The stress and uncertainty of the recent banking crisis has reinforced four ETF truths: investors gravitate to ETFs during times of stress as valuable price discovery tools, ETFs provide additive liquidity beyond what's available in the primary market, ETF trading doesn't have an outsized impact on trading of underlying securities, and use cases for ETFs now range from traditional to complex.
As investors put 2022 in the rearview, January's average ETF inflow was doubled, with non-US equities leading the charge.
Global growth will slow into 2023, with US and European growth not much above zero. Risks are to the downside with sub-trend growth extending into 2024.
Our data also shows that companies with better ESG performance are more resilient in high-volatility environments.
