EFA News and Press, iShares MSCI EAFE From 05/16/22

We recently cut risk, but stick with stocks over bonds for now. Equity prices now reflect much of the worsening macro outlook and hawkish Fed, in our view. Markets came to grips last week with the trade-off central banks face: choke off growth or live with inflation. Yields fell and s...

Just when we thought the world economy was regaining its footing, a military conflict in Europe has led us to reconsider our outlook for growth and inflation. In light of Russia’s invasion, we developed a framework for thinking about the economic impact of the conflict on the e...

The map of the Asset Allocation Committee’s market views is a buzz of activity this quarter. Coming into 2022, we anticipated slower growth compared with the steep recovery levels of 2021 and inflation that was declining but persistent—and problematic due to its origins ...

The expected risk premium continued sliding in April for the Global Markets Index (GMI). Tuesday’s revision reflects a drop to a 5.4% annualized increase for the long term – a relatively large cut of 40 basis points from last month’s estimate. The forecast ref...

All of the ETFs I follow lost money in April. I am reducing my exposure in SPY to 50%. All ETFs are below their 10-month moving averages which is bearish. For further details see: My Current View Of The S&P 500 Index: May 2022 Edition

We don’t see a wage-price spiral. Companies are actually paying less in labor per unit of output, we find. We think wages can rise more without adding to inflation. The S&P 500 plunged to new 2022 lows last week. We remain overweight equities in the inflationary backdrop bu...

Investors face a trifecta of worries: rate hikes, inflation and volatility. In Q1 2022, equity markets took stock of a changing economic and geopolitical landscape. Looking forward, economic and geopolitical uncertainty will likely increase. For further details see: Look...

We like emerging market (EM) local debt within an overall bond underweight. Much monetary tightening has been done, and valuations are compelling. U.S. Treasury yields hit new three-year highs last week, and equities fell. We still think stocks can weather the yield rise in the inflat...

We prefer equities even as bond yields have sprinted higher. Global growth is still solid, and we see central banks ultimately living with inflation. U.S. 10-year yields hit new three-year highs last week, and stocks fell. The European Central Bank affirmed our view it will normalize ...

International Monetary Fund (IMF) indicates that while the Ukraine war has not only led to a humanitarian crisis but it has led to a significant slowdown in global growth in 2022 and add to inflation. Leading the pack are the fuel and food prices which have increased dramatically denting low-...