VEA News and Press, Vanguard FTSE Developed Markets From 05/25/22

Over the last 120 years, valuations have consistently proved to be a strong predictor of future returns with lost decades a common occurrence. Given the low growth economic environment, low rates, and weak inflation, a market return significantly lower over the last decade is logical....

We cut developed market (DM) equities to neutral on a risk of the Fed talking itself into overtightening policy and China adding to a weaker global outlook. Stocks plumbed new 2022 lows on fears steep rate rises will trigger a growth slowdown. We see a brighter picture, but this may n...

SDEM has a ~10.6% TTM dividend yield, which makes it attractive to income investors. I believe we are at a tipping point for global growth and emerging markets aren't going to be spared. On the contrary, these markets can feel even more pain as capital will fly to safe-haven asset...

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...

Tempted to buy the dip on the NASDAQ? You might want to hold off for a bit. While tech has been a strong driver of overall market performance over time, high valuations and falling prices make buying the dip a tricky proposition. How this NASDAQ bear market compares with the dot-c...

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 global exchange traded fund industry garnered $31.42B of net new investor capital in April, according to ETFGI, a leading independent research and consultancy firm. The influx of cash brings the year-to-date ETF inflow total to $337.11B. Additionally, April’s inflows mark the 35th ...

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...

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...