Markets Tend to Rally When Rate Hike Cycles End
It may be an opportune time for investors to add to both their fixed income and equity allocations.
May 9, 2022
Jennison Associates’ Mark Baribeau discusses where he’s finding secular growth opportunities that can be resilient through continued market volatility.
Elevated market volatility drove a sell-off in global equity markets in the first quarter. Europe was hit hardest with a deep sell-off from the invasion of Ukraine. Emerging markets were weak given rising geopolitical uncertainty, a strengthening U.S. dollar, and increased concerns over Federal Reserve tightening. The panic and reflux trade post invasion is now over and markets have shifted their focus back to general macro drivers. Going forward, emerging market regions that have already cycled through macro drivers, like central bank tightening, may offer better growth opportunities.
We continue to find the best growth opportunities clustered around the same secular themes we’ve seen drive market leadership and profit growth over the past two years. But, we’re not going to fight the tide (or the Fed). Instead, we are focused on finding secular growth opportunities that can weather the changing macro environment.
Examples include:
Managing Director,
Head of Global Equity,
and Global Equity Portfolio Manager
Mark Baribeau, CFA
It may be an opportune time for investors to add to both their fixed income and equity allocations.
Jennison Associates’ 2Q23 Outlook highlights long-term optimism for secular growth stocks and why their resiliency may thrive in a challenging market.
PGIM Quantitative Solutions’ Q2 2023 Outlook shares latest market perspectives and areas of opportunities as the recession risk elevates.
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