Third Quarter 2016
Quarterly Capital Markets Review and Outlook
Projecting 2.0% GDP in 2016
Seasonality weighed on first-quarter growth and pick up is expected over the remainder of the year. However, lingering uncertainties still tilt risks to the downside. We project 2.0% U.S. GDP in 2016 Read more >
Fair to Middling Economic Growth Remains in the Forecast
Continued employment gains, a gradually improving manufacturing sector, and solid consumer data should help to ease fears surrounding a U.S. slowdown at a time when the rest of the developed world is struggling. Read more >
Market Conditions Best Addressed with Active Management
We believe that earnings will be the critical variable for the success of U.S. companies versus the political and economic uncertainty emanating from the Brexit. Read more >
Fixed Income Outlook
Foreign Buying of U.S. Bonds Providing Price Support
Uncertainty is always an economic headwind, and we anticipate protracted uncertainty in Europe. The U.S. and China will need to pick up the pace to help carry global growth. Read more >
Q&A with Gwynne Shackelford, Chief Investment Strategist of BBVA Compass Global Wealth, and BWS Investment Strategist, Anne-Joëlle Viguier-Galley
In this edition of the BBVA Compass Market Outlook, Mses. Shackelford and Viguier-Galley review the Brexit vote – its history, the implications, and the outlook for global economies and financial markets. Read more >
BBVA Compass is the trade name for Compass Bank, which is a member of the BBVA Group. Securities products are NOT deposits, are NOT FDIC insured, and are NOT bank guaranteed. May LOSE value, are NOT insured by any federal government agency.
This material contains forward looking statements and projections. There are no guarantees that these results will be achieved.
Investing involves risk including the potential loss of principal. There is no guarantee that a diversified portfolio will outperform a non-diversified portfolio in any given market environment. No investment strategy, such as asset allocation, can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results. Please note that individual situations can vary. Therefore, the information presented here should only be relied upon when coordinated with individual professional advice.
Indexes are unmanaged and investors are not able to invest directly into any index.
International investing involves special risks not present with U.S. investments due to factors such as increased volatility, currency fluctuation, and differences in auditing and other financial standards. These risks can be accentuated in emerging markets.
Investments in stocks of small companies involve additional risks. Smaller companies typically have a higher risk of failure, and are not as well established as larger blue-chip companies. Historically, smaller-company stocks have experienced a greater degree of market volatility than the overall market average.
Equity investments tend to be volatile and do not involve the guarantees associated with holding a bond to maturity.
In general, the bond market is volatile as prices rise when interest rates fall and vice versa. This effect is usually pronounced for longer-term securities. Any fixed income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.
Fixed income investments are subject to various risks including changes in interest rates, credit quality, inflation risk, market valuations, prepayments, corporate events, tax ramifications and other factors.
The investor should note that vehicles that invest in lower-rated debt securities (commonly referred to as junk bonds) involve additional risks because of the lower credit quality of the securities in the portfolio. The investor should be aware of the possible higher level of volatility, and increased risk of default.
Municipal bond offerings are subject to availability and change in price. If sold prior to maturity, municipal bonds may be subject to market and interest risk. An issuer may default on payment of the principal or interest of a bond. Bond values will decline as interest rates rise. Depending upon the municipal bond offered, alternative minimum tax and state/local taxes could apply.
The price of commodities is subject to substantial price fluctuations of short periods of time and may be affected by unpredictable international monetary and political policies. The market for commodities is widely unregulated and concentrated investing may lead to higher price volatility.
Investments in real estate have various risks including possible lack of liquidity and devaluation based on adverse economic and regulatory changes.
Other Sources: Bloomberg; California.gov; Russell.com; First page index returns are calculated on a total return basis using the following indexes: S&P 500 (SPX), MSCI World (MXWO), MSCI Emerging Markets (MXEF), Bloomberg 7-10 Year U.S. Treasury Index (USG4TR), Morningstar U.S. Agency Bond TR Index (MSBIUATR), Municipal Bond Buyer 40 Index (BBMIRNEW), Credit Suisse High Yield Index (CSHY), MSCI U.S. REIT Index (RMZ Index).