Where to find strategic relative value in Q3

As I look at the macro environment in the third quarter, I see a coasting global recovery of solid stable growth. Subdued inflationary pressures mean that monetary policy will be tightened only gradually, and this will support risk taking. In the current environment, I prefer equities over fixed income, credit over government bonds and, by region, European equities over US equities, but US credit over European credit. To hear more about key themes I see playing out, listen to this quarter’s strategic relative value audiocast, which you can look for every quarter.

 

 

For a deeper look into my thoughts on where strategic relative value can be found within equities, fixed income, and real estate, read the full report here.

 

 

Follow Principal Global Investors on LinkedIn

 

_________________________________________________________

Unless otherwise noted, the information in this document has been derived from sources believed to be accurate as of July 2017. Information derived from sources other than Principal Global Investors or its affiliates is believed to be reliable; however, we do not independently verify or guarantee its accuracy or validity.

Past performance is not necessarily indicative or a guarantee of future performance and should not be relied upon to make an investment decision. The information in this document contains general information only on investment matters. It does not take account of any investor’s investment objectives, particular needs or financial situation and should not be construed as specific investment advice, an opinion or recommendation or be relied on in any way as a guarantee, promise, forecast or prediction of future events regarding a particular investment or the markets in general.

All expressions of opinion and predictions in this document are subject to change without notice. Any reference to a specific investment or security does not constitute a recommendation to buy, sell, or hold such investment or security, nor an indication that Principal Global Investors or its affiliates has recommended a specific security for any client account Principal Financial Group, Inc.,  Its affiliates, and its officers, directors, employees, agents,  disclaim any express or implied warranty of reliability or accuracy (including by reason of negligence) arising out of any for error or omission in this document or in the information or data provided in this document.

Investing involves risk, including possible loss of principal.

Risk is magnified in emerging markets, which may lack established legal, political, business or social structures to support securities markets.

International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards.

Asset allocation and diversification do not ensure a profit or protect against a loss.

Principal Funds are distributed by Principal Funds Distributor, Inc.

©2017 Principal Financial Services, Inc. Principal, Principal and the symbol design and Principal Financial Group are trademarks and service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.  Principal Global Investors is the asset management arm of the Principal Financial Group. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc.

t17073107is