On the Markets

 

WisdomTree continues to listen closely to the advisor community and create new resources for advisors as well as all investors to provide the guidance they need to maneuver the daily market changes.

Keep an eye on the situation as it unfolds with our latest news.

The Global Edge Financial Insights from WisdomTree

An empowering blend of global financial research and analysis, insights and macro commentary, our international team of WisdomTree thought leaders from the U.S. and Europe discuss a breadth of topics impacting the global markets today from timely investing opportunities to evolving economic and market trends.

 

Read the Latest: Volatility Remains a Market Constant

Against a backdrop of central banks in full-tilt tightening mode and potential price pressure acceleration, global investors continue to be confronted with a heightened degree of volatility in the equity, bond, commodities and currency arenas. The debate between fighting inflation and avoiding recession is poised to enter a new calendar year, but, for the financial markets, the answer may still prove to be elusive.

Webinar Replays

Fed Tough Talk

In this event replay, Professor Siegel weighs in on his recent public appearances where he has been saying the Fed is “talking way too tough”. He is hosted by WisdomTree’s Global Chief Investment Officer, Jeremy Schwartz and Head of Fixed Income Strategy, Kevin Flanagan who discuss market implications of the Fed’s actions, and potential approaches to consider.

Inflation vs. Recession: Global Central Banks Walk the Tight Rope

During this session of Office Hours, Kevin Flanagan, Head of Fixed Income Strategy and Jeff Weniger, Head of Equity Strategy hosted our colleagues from Europe, Aneeka Gupta, Director of Macroeconomic Research and Nitesh Shah, Head of Commodities & Macroeconomic Research for a discussion on recent policy moves by the major global central banks. In addition, they covered how global monetary policy is set up for the remainder of this year and into 2023.

WisdomTree Office Hours

Advisors can now join our thought leaders as they discuss current markets and actionable investment solutions. This small-setting format allows for advisors to ask questions and enter into a dialogue, leveraging our thought leadership to navigate the market uncertainty. The schedule is updated weekly.


The What’s Now Behind What’s Next:
Minds on the Markets

Week in and week out, our investment strategists Jeff Weniger and Kevin Flanagan, who live and breathe the market, translate the latest headlines, dissect the minutia of meeting minutes and break down the jargon to help inform your evolving investment decisions.

 

Read the Latest

Commentaries from Our Thought Leaders

For more daily insights from our thought leaders, from macro commentary to helpful tips on trading ETFs in times of high volatility, visit our blog.

Actionable Ideas for 2022

We believe the following themes will be prevalent and there are actionable ideas to capitalize on them should you agree with our position.

U.S. Exposure
  • Rising rates poses risk to companies with negative earnings, leveraged balance sheets and/or distant cash flows.
  • An environment of elevated volatility favors stocks with solid earnings and strong margins.
  • Profitable small and mid caps are trading at the low end of their historic valuations and may be primed to stand strong in inflation.

Large Cap Investment Ideas:

Mid & Small Cap Investment Ideas:

Developed Markets Exposure
  • The forces of inflation and rising interest rates support equity screens for Quality and Value.
  • Stocks with strong profitability metrics are critical in choppy markets. We suspect that tighter monetary policy, which has been implemented by the majority of major central banks for most of 2022, will continue to hang a cloud over stocks that have negative earnings or speculative characteristics.
  • Strong balance sheets and a sober approach to leverage seems prudent. The global energy crisis is most acute in Europe, a region that is probably in recession right now.

Actionable Investment Ideas:

Emerging Markets Exposure
  • The asset class offers cheap relative valuations, especially in the Value style box, which offers a built-in hedge to harrowing inflation via exposure to Energy and Basic Materials.
  • At 11.6, the forward P/E multiple of the MSCI Emerging Markets Index is about 6 P/E points lower than the S&P 500 Index, near its largest discount since before the Global Financial Crisis. Some of our Value-oriented indexes trade on forward multiples in the single digits, despite profitability metrics that exceed the asset class as a whole.

Actionable Investment Ideas:

Fixed Income Exposure
  • The outlook for interest rates remains skewed to the upside but fears of a slowing economy and potential recession have become more prevalent of late. Inflation remains at historically high levels and the Federal Reserve seems determined to bring down price pressures and “accept the higher recession risk” that comes with the territory. As a result, we would expect elevated volatility to remain a staple in the bond market in the months ahead.
  • The Fed has now ‘front-loaded’ rate hikes, and unless economic data show signs of a collapse, the policymakers appear poised to continue to move into a ‘restrictive’ fed funds setting. Additional rate hikes should be forthcoming for the remainder of this year, and perhaps into early 2023. While the Fed’s ‘dot plot’ seemingly does not include any reversals next year, fed fund futures have priced in the prospect for a rate cut in the second half of 2023.
  • Fixed coupon bonds, especially in the short duration bucket, remain vulnerable to further rate hikes. Higher absolute yield levels have brought ‘income back into fixed income’.
  • Treasury floating rate and ‘quality-screened’ high yield strategies should be an active consideration.

  • Actionable Investment Ideas:

Basis Points Podcast with Kevin Flanagan