Weekly Market Analysis - Momentum Slows in the US but it Brings Potential New Opportunities
By Citi Wealth Insights |
The Fed is not the only reason for equity market jitters. Oil prices have risen by 10% in September alone. The “easy disinflation” which drove the CPI from a 9% year/year pace to 3% at mid-year is being challenged by OPEC.
CIO Perspectives | Economy | Asset Allocation | Equities | US | Japan
CIO Perspectives: Beyond US valuation Premiums, Look For Global Growth
By Citi Wealth Insights |
While valuations for the US largest growth leaders have skyrocketed this year, we think there are still potential opportunities to invest in both non-US and US companies that may grow earnings quickly. This week, we examine the reasons for the US valuation premium and focus in on Japan as a global opportunity.
Weekly Market Analysis - The Value of Seeking Growth in Global Markets
By Citi Wealth Insights |
The strong performance of US equities over the past 15 years has changed investor dynamics. With the US sitting at a record high 63% of the world’s traded market cap, it is useful to consider whether “cheaper” markets elsewhere present possible opportunities.
CIO Perspectives | Economy | Asset Allocation | Equities | Fixed Income | US
CIO Perspectives: An Update from the Fed Meeting and US IPO Season
By Citi Wealth Insights |
The US Federal Reserve met last week and chose not to raise interest rates. What does this mean for markets? And what does the Fed have to do with IPOs? Listen as we break down the issues and what we need to watch for.
Weekly Market Analysis - The Reopening of the US IPO Window
By Citi Wealth Insights |
One can imagine venture capitalists and investment bankers holding their collective breath this past week. Excluding biotechs, only 75 US companies with a combined value of $11 billion have gone public in 2023. While this mimics the pace of new issues at this point last year, IPO deal flow is down over 90% relative to 2021.
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(MLP’s) - Energy Related MLPs May Exhibit High Volatility. While not historically very volatile, in certain market environments Energy Related MLPS may exhibit high volatility.
Changes in Regulatory or Tax Treatment of Energy Related MLPs. If the IRS changes the current tax treatment of the master limited partnerships included in the Basket of Energy Related MLPs thereby subjecting them to higher rates of taxation, or if other regulatory authorities enact regulations which negatively affect the ability of the master limited partnerships to generate income or distribute dividends to holders of common units, the return on the Notes, if any, could be dramatically reduced. Investment in a basket of Energy Related MLPs may expose the investor to concentration risk due to industry, geographical, political, and regulatory concentration.
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MBS are also sensitive to interest rate changes which can negatively impact the market value of the security. During times of heightened volatility, MBS can experience greater levels of illiquidity and larger price movements. Price volatility may also occur from other factors including, but not limited to, prepayments, future prepayment expectations, credit concerns, underlying collateral performance and technical changes in the market.
Alternative investments referenced in this report are speculative and entail significant risks that can include losses due to leveraging or other speculative investment practices, lack of liquidity, volatility of returns, restrictions on transferring interests in the fund, potential lack of diversification, absence of information regarding valuations and pricing, complex tax structures and delays in tax reporting, less regulation and higher fees than mutual funds and advisor risk.
Asset allocation does not assure a profit or protect against a loss in declining financial markets.
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International investing entails greater risk, as well as greater potential rewards compared to US investing. These risks include political and economic uncertainties of foreign countries as well as the risk of currency fluctuations. These risks are magnified in countries with emerging markets, since these countries may have relatively unstable governments and less established markets and economics.
Investing in smaller companies involves greater risks not associated with investing in more established companies, such as business risk, significant stock price fluctuations and illiquidity.
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Diversification does not guarantee a profit or protect against loss. Different asset classes present different risks.
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