- Following a banner year in 2019, traditional equity and fixed income markets have maintained a strong momentum into 2020. Already up nearly 5% year to date, U.S. stocks reached another new all-time high this week.1 Meanwhile, falling interest rates have helped support the Barclays Agg, which has returned approximately 1.7% this year.1
- However, given the combination of the current historic bull run, which is poised to enter its 11th year in March, and stock valuations that have become increasingly stretched, many investors appear to have increasingly moved toward the “fear” end of the fear-greed investment spectrum.
- According to a study FS Investments conducted in partnership with InvestmentNews Research, investors’ main areas of focus with their advisors for the next five years are traditionally very conservative. As the chart shows, their top three goals include protecting against investment losses, generating income and diversifying their portfolios.2
- Against a backdrop of outstanding returns for the traditional 60/40 portfolio in recent years with mounting pressures across traditional stock and bond markets, investors may benefit in the coming years by turning to alternative investments to meet their income and portfolio diversification needs.
1 As of February 13, 2020. U.S. stocks are represented by the S&P 500 Index.
2 FS Investments and InvestmentNews Research, http://bit.ly/2vt8byg.
This information is educational in nature and does not constitute a financial promotion, investment advice or an inducement or incitement to participate in any product, offering or investment. FS Investments is not adopting, making a recommendation for or endorsing any investment strategy or particular security. All opinions are subject to change without notice, and you should always obtain current information and perform due diligence before participating in any investment. FS Investments does not provide legal or tax advice, and the information herein should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact any investment result. FS Investments cannot guarantee that the information herein is accurate, complete, or timely. FS Investments makes no warranties with regard to such information or results obtained by its use, and disclaims any liability arising out of your use of, or any tax position taken in reliance on, such information. FS Investments cannot be held responsible for any direct or incidental loss incurred as a result of any investor’s or other persons reliance on the opinions expressed herein. Investors should consult their tax and financial advisors for additional information concerning their specific situation.
Any projections, forecasts and estimates contained herein are based upon certain assumptions that the author considers reasonable. Projections are speculative in nature, and it can be expected that some or all of the assumptions underlying the projections will not materialize or will vary significantly from actual results. The inclusion of projections herein should not be regarded as a representation or guarantee regarding the reliability, accuracy or completeness of the information contained herein, and neither FS Investments nor the author are under any obligation to update or keep current such information.
All investing is subject to risk, including the possible loss of the money you invest.