Key Investment Perspectives: May 2019
The May installment of Key Investment Perspectives reviews April’s record month for the US economy, posing the question, “Why invest internationally?”
This month’s report takes a deep dive into the biggest market headlines, including what is driving the best four-month start to the US economy since 1983, why international markets remain critical to portfolios, how Democratic presidential candidates’ support for “Medicare for All” fueled a healthcare sell off , and why the “Amazonification” of retail has led investors to shun physical retail real estate with little evidence to expect a reversal in the future.
- Global Equities: The US equity market year-to-date is up 18.6%. The US also saw the lowest unemployment rate in half a century and surprising first quarter economic growth. Developed markets saw 2.7% growth, with Germany leading the way (6.8%), and South Korea and Japan lagging due to slowing global growth. China posted a modest 2.2% growth, despite notable first quarter economic growth.
- Fixed Income: US Treasuries were slightly down as Treasury yields rose marginally. US investment grade credit was up slightly (0.5%) as spread tightening continued, coinciding with the equity market’s recent rally.
- Tactical Allocation: Within equities, we maintain an overweight to the US, underweight to Developed ex-US markets, and neutral on emerging markets. We have a slight preference for larger-cap US stocks, emphasizing higher quality and defensive attributes.
About Bola Olusanya
Bola Olusanya has more than 20 years experience in investment management as both an executive and thought leader. As Managing Director of Asset Allocation and Portfolio Strategy with Key Private Bank, Bola applies his expertise to direct Key Private Bank’s third-party manager research efforts, oversee the group’s portfolio construction efforts, and design an asset allocation methodology applicable to all stakeholders.
Bola received an MBA with a concentration in finance from Emory University and an MS in computer science from the University of Lagos. He is known for his quantitative expertise, his extensive knowledge of the full spectrum of asset classes, and his ability to mentor and manage high-performing investment teams.