2018 Q4 OUTLOOK, (Still) no signs of slowing
Jose Minaya, Chief Investment Officer, Nuveen
At midyear, Nuveen, the investment manager of TIAA, offered the view that global investors by and large should remain in a risk-on mode, even as we pointed out that some cracks were starting to appear in that bullish view. Moving into the fourth quarter, we still believe investors will do best by sticking with pro-growth, risk-on positions, but we acknowledge that changes over the past few months have affected our outlook from here.
In our fourth-quarter investment outlook,
(Still) no signs of slowing
, we point out that the risks that seemed most pressing three months ago (the U.S. moving into a late-cycle expansion and worries about rising interest rates and inflation) have since given way to concerns about U.S. and global growth divergence and even greater uncertainty about trade. Investors are witnessing a growing dispersion between U.S. stocks and equities in other markets: It seems evident to us that either the U.S. market must correct, or the rest of the world needs to catch up. For now, we are leaning more toward the view that the U.S. still offers further upside potential, but we are increasingly focused on valuation pressures.
As always, we encourage investors to maintain the long view and an appropriately diversified portfolio. Work with your advisor to make sure your asset mix is in line with your overall investment objectives, preferences, and tolerance for risk.