In part II of our annual, exclusive interview with legendary economist Ed Hyman of Evercore ISI and BlackRock Global Allocation Fund’s Dennis Stattman the focus is international and the state of the world’s economies and markets in 2016.
WEALTHTRACK Episode #1230; Originally Broadcast on January 15, 2016
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Today’s stock market rally was a welcome relief from another challenging week. The Dow Industrial’s 228 point gain, the biggest so far this year kept it out of official correction territory of negative 10% from last year’s high. The S&P 500 and NASDAQ Composite had already crossed the correction mark.
Today’s rebound saw the most battered sectors recover the most. Energy, mining and biotech stocks led the charge.
Last week when we sat down for Part One of our exclusive outlook with Wall Street’s legendary economist, Evercore ISI Chairman Ed Hyman and Dennis Stattman, the long-time Portfolio Manager of the BlackRock Global Allocation Fund, we were off to the worst weekly start of a new year ever for both the Dow and the S&P 500. However it wasn’t a domestic event that triggered the declines, it was a huge market sell-off in China, exacerbated by their new market circuit breakers which completely shut their markets down for two days.
This week, in Part Two our focus is the 2016 outlook for world growth and markets. What does the future hold for China, the rest of the global economy and stock and bond markets?
As we have done since launching WEALTHTRACK in 2005, we have an exclusive television interview with legendary economist Ed Hyman, who holds the record for being voted the number one economist by Institutional Investor magazine for an unprecedented 35 years, a distinction no one comes even close to matching.
Dennis Stattman launched the BlackRock Global Allocation Fund in 1989. Since then the broadly diversified fund, which invests in stocks, bonds and other securities around the world has delivered better than 10% annualized returns with a third less than stock market volatility. It is the only fund in the World Allocation category with Morningstar analysts’ highest rating of Gold.
Last week, Part One of our 2016 outlook focused on the state of the U.S. economy and markets. Hyman made the case for the U.S. economy continuing its slow and steady recovery for several more years and rated the odds of recession as only one in ten this year.
Stattman explained why well before the recent market rout he has been substantially de-emphasizing U.S. stocks in his global portfolio, saying the U.S. market is historically expensive, that it has been struggling ever since the Federal Reserve started withdrawing stimulus a year ago, and that corporate profitability is slowing.
What are their views on China, Japan, Europe and other markets? Are there opportunities being created in the global arena? We will find out.
If you can’t join us for the show on public television this week, you can always watch it on our website, WealthTrack.com over the weekend. You’ll also find an exclusive online EXTRA interview with Stattman there discussing the importance of investing globally. If you’d like to see the show before it airs, it is available to our PREMIUM subscribers right now.
Have a great weekend, Martin Luther King holiday and make the week ahead a profitable and productive one.
CONSIDER AN ACTIVELY MANAGED FUND THAT WILL GIVE YOU BROAD PORTFOLIO DIVERSIFICATION
- BlackRock Global Allocation Fund vs. FTSE World Index (Since 2/89 Inception)
- Equity-like returns: Upside Capture: 70%
- Less than market risk: Downside Capture: 43%
STATTMAN: BULLISH ON JAPANESE STOCKS
- UNHEDGED: iShares MSCI Japan (EWJ)
- HEDGED: iShares Currency Hedged MSCI Japan (HEWJ)
HYMAN: DIVERSIFY INTO EUROPE
- Put some money in European stocks
- Safer than Japan
STATTMAN: GLOBAL IMPERATIVE
Dennis Stattman has been managing the BlackRock Global Allocation Fund since its inception in 1989 when there were far fewer funds investing in multiple asset classes around the world. We asked him about the importance of being global.