As we ring the New Year, gurus from Wall Street begin to offer prognostications for 2019. In reality we understand that their best guess is just that, a guess. However, we acknowledge two things; first, their guess is an informed and educated guess and secondly, it doesn’t really matter what you or I think, it matters what Wall Street thinks. After all, the direction of the Stock Market is a measure of the collective vote of well-heeled stock buyers. If Wall Street likes a stock, the demand for shares of that stock drives the price higher. If Wall Street does not like the stock, the collective selling (supply) or simple lack of demand (no buyers) will drive the price of a stock down. That said; just for fun, we data mined Bloomberg for recent interviews of some of Wall Street’s most notable investment gurus to get a feel for how they may vote with their dollars in 2019. Here is what they said:
Fidelity Investments, Director of Global Macro:
Capital Group (American Funds), vice chairman and equity portfolio manager:
DoubleLine Capital, CIO and CEO
BlackRock Inc., Global Chief Investment Strategist
T. Rowe Price Group Inc., CEO
U.S. stocks are looking scary after their worst year in a decade. Credit is risky too. Volatility is back. For many, cash and short-term debt may be the best place to go.
As Fund Company executives, portfolio managers and strategists at some of the world’s biggest money managers turn to 2019, they’re cautioning that returns could be muted across asset classes. They’re also urging investors to be increasingly selective in the quest for value. Here’s a sampling of views.
Pacific Investment Management Co., group Chief Investment Officer
Vanguard Group, Chief Global Economist
Charles Schwab Investment Management, CIO of equities and multi-asset strategies
Loomis Sayles & Co., Vice Chairman
Invesco Ltd., Chief Global Market Strategist
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