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: Navigating the Uncharted Waters Between Growth and Inflation

Insightful macro commentary on the recent dramatic shift in monetary policy by just about every central bank in the developed world.

Webinar Replay

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 cheap relative to beta indexes. Though many major central banks may remain behind the curve relative to the Fed, we suspect a global rising rates regime will pose an obstacle to Developed Market 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 10.8, the forward P/E multiple of the MSCI Emerging Markets Index is about 6 P/E points lower than the S&P 500, near the 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 move from a ‘neutral’ to ‘restrictive’ fed funds setting. Additional rate hikes should be forthcoming during the second half of this year, but fed funds futures have recently begun discounting the prospect for rate cuts in the second half of 2023.
  • Balance sheet run-off, or quantitative tightening (QT), is also being utilized by the Fed to help in their fight against inflation, but the process is in its early stages and has remained largely in the background for now.
  • Fixed coupon bonds, even in the short duration bucket, and inflation-linked bonds remain vulnerable.
  • Treasury floating rate and zero duration strategies should be an active consideration.

  • Actionable Investment Ideas:

Basis Points Podcast with Kevin Flanagan