Investing in 2019: Finding Signals Within the Noise

    Facebook Twitter LinkedIn Email

By Prabha Ram - January 23, 2019

As we begin 2019, investors are being pummeled by negative news and data points on politics, trade, Central Bank policy, oil prices etc. Economic data such as low inflation, positive employment trends and solid corporate profits are being drowned out. I would like to point out that the market backdrop is not all good, but neither is it all bad.

One of the unknowns in the new year is whether the U.S. Federal Reserve (Fed) will be overenthusiastic with rate hikes and negatively affect market liquidity. Predictions are that the Fed will raise rates one or two times in 2019. On that topic, I go back to something Fed Chairman Jay Powell said in a speech recently. He suggested that if you’re in a room full of furniture and the lights go out, you just slow down and find your way—you don’t panic.

While we evaluate all market movements and their causes, I’m optimistic about economic conditions in the United States, as well as the opportunity to find or hold on to well-run companies with durable business models at attractive prices.

Check out my 2019 outlook video to find out more—including what I look for in a company before investing in it.

Prabha Ram
Prabha Ram

Transcript

  • Related Articles
  • More From Author

Beyond U.S. Markets: Searching for Growth Amid Gloom

Sr. Portfolio Manager Rajesh Gandhi explains how his team finds ways to “connect the dots” to find growth businesses despite looming trade wars.

Seeking Companies With Secular Growth Prospects

Sustainable competitive advantages and pricing power are key attributes of companies Portfolio Manager Jeff Bourke seeks in the current economic environment.

Uncovering Value Amid Tech Disruption

There's always a market for value stocks out there, according to Sr. Portfolio Manager Mike Liss, even in industries disrupted by big tech.

    The Search for Sustainable Growth

    Portfolio Manager Prabha Ram is focusing on companies that have sustainable growth in their mix as she looks at investments for the rest of 2019.

    Investing in 2019: Finding Signals Within the Noise

    Portfolio Manager Prabha Ram is seeing a mix of good and bad economic indicators heading into 2019. Where is she finding opportunities in the noise?

      Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

      The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.