While there should never be a single method for formulating an investment thesis, our WoX index has been a helpful component for evaluating trends in asset allocation and investor sentiment.
When in doubt, if traditional valuation models are not producing reliable results, advisors should look for other measures to guide their decision-making.
As investors keep finding themselves engaged in discussions over defining the right time horizon, the topic of long-term investing, as typically suggested, is clearly of benefit.
We continue to think that the delta between domestic markets and other financial opportunities (e.g., certain commodities, emerging markets equity, and select fixed income), is hard to justify in the long run.
It should not come as a surprise that buybacks have been considered Wall Street’s new drug, particularly in an attempt to manage stock prices to higher levels in the absence of QE.
