Nasdaq – With markets clearly entering a ‘muddle through’ phase in which low growth and uncertainty are the norm, many investors are reevaluating some of their portfolio choices. This is especially true as a variety of U.S.-centric firms warn or miss on Q3 earnings, suggesting that America can no longer be counted on as a bastion of growth and stability and that some choppiness may be on the way for domestic investors.
Given this backdrop, putting some capital in lower correlated assets could potentially be a good idea as it could help to have some of the portfolio moving independently of broad markets. This could be very important if the glow from more QE wears off and if both emerging markets and domestic earnings seem poised to signal lower stock prices in the near term.
