What a Difference a Year Makes

By Brent Puff - October 31, 2018

A year ago, I talked about the favorable backdrop for equity markets driven by synchronized economic growth around the world and the strength in corporate profits. Today, the economic backdrop is more disjointed, equity markets are more volatile and the two largest and most important economies on earth—the U.S. and China—are in the midst of a growing trade war.

Although we acknowledge equity returns face a few more challenges going forward than they did a year ago, we continue to believe the outlook for equities is favorable and here’s why: the rate of growth in corporate profits is still fairly strong and economic activity, while moderating, remains healthy.

The headwinds our investment team continues to closely monitor include US dollar strength, inflation, the continued tightening of US monetary policy, and economic disruption induced by US/China trade friction.

In my latest quarterly video, we’ll do a deep dive into all of these issues and also reveal what single issue surprised me the most in the third quarter.

Brent Puff
Brent Puff
Global and Non-U.S. Equity

TRANSCRIPT

  • Related Articles
  • More From Author

Finding Growth Opportunities in an Uncertain Economic Cycle

Portfolio Manager Jeff Bourke describes how our growth teams are navigating this uncertain environment to find compelling long-term growth opportunities.

Finding Perspective Amid Turbulence

Head of Investment Solutions Cleo Chang analyzes possible performance drivers in a volatile 2019 and market reactions to similar selloffs in the past.

Optimism in Value Investing in 2019?

While the end of 2018 may have been rocky for financial markets, our value team is excited about their prospects in 2019.

    Headwinds Ahead for Global Growth Stocks?

    Despite a disjointed and volatile economic backdrop, Portfolio Manager Brent Puff remains optimistic on the 2019 outlook for equities. One issue, however, did surprise him in the third quarter of 2018.

      Generally, as interest rates rise, the value of the securities held in the fund will decline. The opposite is true when interest rates decline.

      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.