Investment Themes

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As 2017 continues to unfold, changing economic, market, and political conditions are introducing more uncertainty into markets than in recent years. Since the 2008 financial crisis, record-low interest rates have pushed investors into riskier, higher-yielding assets. But that environment may now be changing. Market expectations are stretching stock valuations, the Federal Reserve (Fed) is uncertain about raising rates, and global events are contributing to political uncertainty.

The investment professionals at American Century Investments® discuss themes we believe will have the most impact on investors going forward. For each theme, we provide portfolio positioning ideas for investors to consider.

What to Know, What to Consider:

  • Stretched Valuations: Hope is not a viable investment strategy, but it's pushing U.S. stocks to record highs. We provide ideas for navigating the risks inherent in a stretched valuation environment.
  • Rising Rates: The Fed wants to keep raising interest rates. Will their pace and timing stay on schedule? While we await the Fed's next moves, find ways to position your fixed income investments without overreacting.
  • Political Uncertainty: U.S. political changes could provide a boost—or bust—for global investments. Rather than react to the views of political pundits and pollsters, build your portfolio based on long-term, time-tested principles.

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.

Generally, as interest rates rise, bond prices fall. The opposite is true when interest rates decline.

International investing involves special risks, such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks.