The latest research, data, and insights from the investment experts at Key Private Bank.
Key Private Bank Investment Brief
Our leading experts bring you their weekly research and insights on topics that matter most to you. From navigating turbulent global financial markets to interest rates, inflation and wealth management, KeyBank Investment Center insights delve into today’s trends and tomorrow’s opportunities.
Key Questions: Is There an Opportunity in Small Caps?
Small-capitalization (small-cap) stocks have underperformed their large-cap peers since 2019. They are now trading at the widest valuation discount relative to large caps over the past 15 years. Both when compared to their own history and to their large-cap peers, small-cap stocks are cheap. Is there an opportunity for a tactical allocation?
Key Questions: Will the Dominance of the US Dollar Ever Be Challenged?
We have learned that forecasting currency markets is tricky, but we still think it is wise not to bet against the US dollar in the long run.
Key Questions: The Yield Curve Inversion... or Diversion?
The US Treasury yield curve has inverted for the second time this year, as the Federal Reserve (Fed) continues to communicate an aggressive interest rate-hiking plan to bring inflation down. We believe that there are six key questions to consider when analyzing an inverted yield curve and determining how it should be used by investors.
Key Questions: Are We in a Recession?
Such a question is an academic debate with staunch supporters of both positions. Economic growth is cooling, and financial conditions are tightening. Markets, therefore, will continue to be volatile requiring investors to be patient and selective when putting capital to work.
Key Questions: When the Market Is Volatile, Why Is it Important to Have a Financial Plan?
Markets will always be unpredictable. Market downturns are painful but are a naturally occurring component of equity-market investing. A well-designed financial plan considers market volatility and can help you brave the ever-changing ebbs and flows of the market.
Key Questions: Stocks Have Entered a Bear Market. What Do Investors Need to Know?
History tells us a bear market generally precedes a recession, but the bottom in the market also typically precedes the bottom in the economy.
Key Questions: Will Actions by Global Central Banks Lead to a Recession?
Central banks face a dilemma: Allow inflation to remain persistent or raise interest rates to combat it at the potential cost of a serious global economic slowdown
Key Questions: Persistent Inflation Provokes a Bear Market. What’s Next?
Investors may be facing a “financial hurricane” but the best strategy may be to remain calm as the storm comes to shore.
Books for Your 2022 Summer Reading List
Summer is upon us once again, and there’s no better place to catch up on your reading than the beach or wherever you choose to get away (even if it’s the hammock in your backyard). But while a good thriller or romantic novel is always a solid choice, so is a well-written book that helps develop our skills or enhance our knowledge of the world.
Key Questions: How Can You Protect Yourself From Cybersecurity Threats?
The ongoing war in Eastern Europe has also raised a new set of questions regarding the influence of state-actors in cyberattacks, and whether we should be thinking about risk and our personal data security differently.
Key Questions: Have FAANG Stocks Been Permanently Defanged?
Over the past several years, the foundation of many stock market indices and equity-centric portfolios has centered around a handful of major technology stocks which are frequently referred to as the FAANG stocks. These stocks are heavily followed by both investors and the media as their importance to the overall economy has grown immensely.