June 16, 2022
The merits of a diversified alternatives approach
A diversified alternatives approach has merit for an all-weather approach to diversification.
Resilient solutions
Investors today face a unique combination of challenges—but they don’t have to face them alone. We’ve put together a collection of actionable ideas on how to proactively respond to the market’s most pressing issues, weather today’s heightened uncertainty, and prepare for what’s next—with confidence.
Volatility is on the rise
The anomaly of 2020 aside, the VIX has rarely risen above an index level of 25 during the past decade. But this year, it’s been consistently above average—and it’s been trending higher.
Market volatility has been unusually high—and it’s mounting
Cboe Volatility Index (VIX), 4/1/13–7/1/22
Source: Federal Reserve Bank of St. Louis, as of July 1, 2022. The Cboe Volatility Index (VIX) tracks the market’s real-time expectation of volatility over the coming 30 days. It is not possible to invest directly in an index. The gray area represents a recession.
What to do now
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Learn more about Bond Fund Explore Investment Grade Bond Fund
Consider an increased allocation to fixed income
Now could be a good time to consider whether you’ve got enough exposure to fixed-income strategies—one of the most time-tested means of offsetting equity volatility. Our core and core plus strategies could be worth a closer look.
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Learn more about Alternative Asset Allocation Fund Discover Diversified Macro Fund
Consider a broad-based position in alternative investments
Alternative investments are often an underused way to buffer stock-market risks. Now may be a good time to consider a broadly diversified exposure to different segments of the alternatives market.
See how these funds stack up.
Explore our Fund Compare tool to learn more.
Related viewpoints
May 18, 2022
Slowing growth and souring sentiment—how to survive a bear market
Major stock indexes flirt with bear market territory as concerns about U.S. growth mount. How should investors act in the face of uncertainty?
June 22, 2022
Understanding the role of risk-off factors in absolute return
An absolute return investment strategy has to balance a wide range of investment risks. We take a look at how some risk factors can act as a counterweight to volatility and potentially drive positive returns.
High inflation is eroding real returns
Inflation in the United States, Canada, and much of Europe is at a 40-year high. In addition to the pain that such a high rate of inflation inflicts on consumers, it can also dilute the real (i.e., net) returns for the vast majority of investments—essentially anything that doesn’t automatically compensate for rising inflationary pressures.
Source: U.S. Bureau of Labor Statistics, as of July 13, 2022. The Consumer Price Index (CPI) tracks the average change of prices over time by urban consumers for a market basket of goods and services. The figures above represent the year-over-year percentage increase in prices for different segments of the economy as of June 30, 2022.
What to do now
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Learn more about Disciplined Value Mid Cap Fund Discover Mid Cap Growth Fund Explore Multifactor Mid Cap ETF
Consider a position in mid caps
The so-called mighty middle of the equity market has historically performed well in periods of moderate and high inflation. See if adding mid caps to your portfolio could be a prudent move.
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Learn more about Small Cap Core Fund
Consider a tactical position in small caps
Although small-caps tend to be more volatile than their more established counterparts, they also tend to experience bigger rebounds when the market recovers. See how a small-cap equity fund might fit into your portfolio.
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Explore Floating Rate Income Fund
Consider adding inflation buffers to your portfolio
One nearly inevitable consequence of persistently high inflation: rising rates. Floating-rate securities generally benefit from rising rates, as their coupons regularly reset to keep pace.
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Learn more about Infrastructure Fund
Consider tactical allocations to real assets
Real assets are one way to diversify away from the gyrations of stock market volatility. Learn more about our approach to infrastructure investing.
Want to learn more about these funds' risk and return metrics?
Try our Fund Compare tool today.
Related viewpoints
June 10, 2022
Four reasons why U.S. small-cap stocks look attractive despite today’s headwinds
With historically low valuations, small caps present an abundance of opportunities as we look ahead to a period of economic transition.
June 7, 2022
How does inflation affect investments?
After decades of low and declining inflation, rising prices are once again having an effect on everything from household budgets to public policy. We look at the causes of inflation today and historically and how it affects investments.
June 3, 2022
Three strategies to prepare portfolios for a late-cycle economy
With rising rates, high inflation, and slowing growth, this is shaping up to potentially be one of the shortest economic cycles in history. We take a closer look at three strategies that savvy investors can use to prepare their portfolios for a late-cycle environment.
Interest rates are heading higher
Interest rates are on the rise in many parts of the world—but not everywhere. The disconnect between developed and developing economies could have significant consequences for capital allocation around the world.
Source: FactSet as of July 29, 2022.
What to do now
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Learn more about Floating Rate Income Fund
Consider ways to turn rising rates into a tailwind
Floating-rate strategies have the potential to offer higher levels of income as interest rates rise and can help diversify a rate-sensitive bond portfolio. See if a floating-rate fund could be right for you.
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Learn more about Disciplined Value Fund
Consider tilting your equity exposure toward value stocks
Value stocks have historically outperformed during periods of heightened volatility. See how the disciplined approach behind this time-tested strategy could help in today's market.
See how these funds would fare in a portfolio.
Explore our Fund Compare tool to find out.
Related viewpoints
May 24, 2022
Will the Fed's approach to interest-rate hikes trigger a recession?
Concerns about recession risks are rising amid seemingly persistent inflation and rising interest rates. Find out to what extent these fears are warranted.
June 23, 2022
Inflation, rising rates, and the return of the value cycle
Do rising rates and the effects of high inflation signal the return of the value cycle? A review of the case for value investing in today's environment.
June 2, 2022
Stocks on sale across the value-growth spectrum
Fears of recession shouldn't blind us to signs of economic strength or opportunities in distressed sectors—particularly tech. We provide an overview of where we see opportunities now.
A deeper dive into what’s driving global markets
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Important disclosures
Diversification does not guarantee a profit or eliminate the risk of a loss. Past performance does not guarantee future results.
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