Wealth Management Blog | WrapManager | Eagle Asset Management Inc

Eagle Asset Management - Volatility Examined

Posted by WrapManager's Investment Policy Committee

November 23, 2015

Richard Skeppstrom, of Eagle Asset Management's Strategic Return Portfolio, analyzes recent market volatility in Eagle's November Market Perspective.

"As the third quarter came to a close, equity markets were a stumble away from panic. Bankruptcy concerns were playing havoc in the commodity space while technicians nervously watched for a Dow sell signal. If the Dow had closed below the August trough of 15666: a blood bath. I wrote that I was comfortable with my equity allocation and would just wait and see, ignoble action possibly resembling chicken excrement. Of course, my reluctance to do anything was a reliable buy signal. Don Hayes, the longstanding strategist at fondly remembered Wheat First Securities, used to say the markets will do whatever they can to confound the most. The rebound this month certainly qualifies. Not only has the market staged a striking rebound, but also sector leadership completely reversed. Energy and commodities – hated a few weeks ago – have led while healthcare has lagged.

Eagle Asset Management - Interest Rates and Equity Markets

October 27, 2015

Eagle Asset Management's Richard Skeppstrom reviews the Fed's interest rate decision and discusses current equity markets in this month's market perspective. "Interest-rate constipation U.S. economic growth was nearly 4 percent in the second quarter and the U.S. Federal Reserve decided to leave rates at 0. It was rumored to be a close call but labor conditions aren’t perfect: too many aren’t looking for work, international markets are unsettled and infl ation remains just below target. I didn’t believe 0.25 percent made any difference anyway but equities weren’t thrilled. You might think that after watching these things for 20-some years, I’d know if the news were good or bad; however, I’m not even sure what the news was in this case. Some countries aren’t well-run? Some people would rather not work? In any case, the Fed still believes it imprudent to pay interest on savings. Congrats to the borrowers. [+] Read More

Eagle Asset Management - Market Volatility Perspective

September 30, 2015

Eagle Asset Management's Richard Skeppstrom says we're in no danger of a recession and asks investors not to panic. Continuing market volatility and the possibility of a slight increase in interest rates do not necessarily spell disaster. "Don't Panic The market’s momentum was ebbing with the slowing of global growth. The return of volatility was inevitable and corrections are a fact. People panic for a reason; there’s generally no shortage of reasons and happily there are very few good ones. Unfortunately, in the last 15 years, we’ve had two wrenching stock collapses and they remain fresh in everyone’s minds. In the first, the U.S. Federal Reserve tightened to rein in the tech bubble (that it had ignored/blessed) and associated nonsense but there’d been too much excess and the economy fell into recession. In the second, the Fed tightened to rein in the housing bubble (that it created) and associated nonsense but there’d been too much excess and the banking system nearly collapsed, dragging the economy into the Great Recession. [+] Read More

Eagle Asset Management's Perspective on Rate Increases

June 25, 2015

Eagle Asset Management's Richard Skeppstrom discusses the Fed's approach to debt and credit in this month's Market Perspective. "Betwixt and between The easy money’s been made. That’s not gloomy talk. It’s not controversial. It’s not a recommendation to do anything. It’s a fact. You can expect high returns from stocks when margins are depressed, valuations are low, interest rates can be slashed and the U.S. Federal Reserve is about to juice the system. But that’s simply not where we are now. We are in a new market where the returns will be lower, fewer things will work and volatility will be higher. We will be in this environment for the foreseeable future. This is sort of like getting older. As they say, it’s better than the alternative. Cheer up. [+] Read More

Eagle Asset Management May 2015 Market Perspective

June 10, 2015

Eagle Asset Management portfolio manager, Richard Skeppstrom, provides his May market perspective. "A Catch-22: The powerful earnings advance will peter out without better economic growth but the Fed will raise rates if the economy accelerates." Richard Skeppstrom, manager for Eagle's Strategic Return Portfolio, comments on his view of the U.S. Market's neutral state. [+] Read More

Slow but Steady - Eagle Asset Management Whitepaper

April 22, 2015

Our focus isn’t on emphasizing just whether a company is good or bad but how people are reacting to it. How the sentiment changes. Fundamentals matter but how they interact with human behavior is what creates investing opportunities. Our view is: Stay in the middle of the boat, ignore the headlines and do well in some companies that people may not expect: healthcare in emerging markets or U.S. grocery stores, for example. Read more market perspectives in Eagle Asset Management's insightful whitepaper. [+] Read More

Eagle Asset Management Market Perspective

April 15, 2015

"The Fed may have axed the word patience from its commentary but I’m beginning to wonder if extreme patience may be called for." Eagle Asset Management's, Richard Skeppstrom, weighs in on the Federal Reserve's comments following the last Federal Open Market Committee meeting. [+] Read More

Coming Upon Final Act of Interest-Rate Saga - Eagle Asset Management

September 10, 2013

Eagle Asset Management's monthly commentary focuses on their predictions as to where interest rates will be and the affects it will have on the economy and markets. "Where will the 10-year Treasury be in three years? Will it be closer to 2 percent or 5 percent? I’m now wrestling with this question because the fiscal drag on the economy from the sequester will gradually fade over the coming months. The U.S. Federal Reserve’s tapering talk suggests it sees stronger growth ahead and there have been signs of economic stabilization in Europe and China. We could be close to moving on from the 2008 crisis, in which case interest rates should normalize. Or it could be another false dawn with growth disappointing and rates rolling over again." Download Eagle Asset Management's Full Commentary Here Get Free Research Reports on Eagle Asset Management [+] Read More

Roundtable with Eagle Asset Management's Senior Portfolio Managers

August 23, 2013

Eagle Asset Management's Senior Portfolio managers sit down and discuss their outlook on what they consider the main issues in the world today. "Eagle Asset Management’s equity and fixed-income portfolio managers regularly meet to discuss ideas, events in the financial markets and potential opportunities for investors. The global economy still has areas of concern, especially in Europe and China. Meanwhile, there are mixed data points on the domestic front. Our managers’ discussion included such topics as how and when the Federal Reserve will taper its quantitative-easing program; U.S. energy independence; what effects, if any, federal policy and politics have on markets; and – perhaps most interesting to readers – how they have positioned investment portfolios." Download Eagle Asset Management's Full Commentary Here Get Free Research Reports on Eagle Asset Management [+] Read More

Eagle Asset Management - Will Fed Accommodation Ebb?

August 8, 2013

Portfolio Manager Richard Skeppstrom explains why he's continuing to hold his ~60% allocation to equities moving forward. "June jobs, reported July 5, came in stronger than expected at 195,000 and previous months were revised higher. Treasury rates exploded up to 2.725 percent. Markets, both equity and bond, interpreted the numbers as a signal that the economy is indeed stronger and Fed accommodation will ebb." Download Eagle Asset Management's Full Commentary Here Get Free Research Reports on Eagle Asset Management [+] Read More