A market of mixed messages

Equity Team

IN THIS QUARTER'S EQUITY OUTLOOK - Download PDF

Making sense of the market's rise

The case for U.S. housing

2020 campaign changes health sector valuations

We enter the final quarter of the year with a somewhat puzzling backdrop for equity investors. GDP growth across global markets remains in the positive range of the past decade. However, trends that typically signal pullbacks, slowing growth, or even recession have been intermixed with positive economic data and signs of strong consumer confidence.

Are equity investors bullish or nervous, and what is the likelihood of recession in the year ahead? We take a look at positive and negative trends — from the surprising drop in Treasury yields to the impressive financial results from many businesses in the consumer sector. We also analyze the U.S. housing market and the potential effects of the U.S. presidential election on health-care stocks.

GDP growth has been positive, in a narrow range over most of the decade

Next: Making sense of the market's rise

More from Equity Outlook

We enter the final quarter of the year with a somewhat puzzling backdrop for equity investors.

Earnings growth poised for improvement

Shep Perkins, Chief Investment Officer, Equities, offers his outlook for corporate earnings.

An active, research-driven approach to investing in equities

Equity investing at Putnam features a tenured and talented team of portfolio managers backed by an integrated group of research analysts with worldwide reach. Our research organization is structured to focus fundamental analysis on the factors that matter most in global equity markets.

EQUITIES AT PUTNAM

Shep Perkins, CFA
Chief Investment Officer, Equities
Investing since 1993
Joined Putnam in 2011

Kate Lakin
Director of Equity Research
Investment industry since 2008
Joined Putnam in 2012

Download the complete Q4 2019 Equity Outlook

Download PDF

Print this post

Putnam blogs are optimized for printing.

"Alexa, ask Putnam Investments,
'What's new?'"

Download the free skill for your Echo smart speaker.

For informational purposes only. Not an investment recommendation.

This material is provided for limited purposes. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument, or any Putnam product or strategy. References to specific asset classes and financial markets are for illustrative purposes only and are not intended to be, and should not be interpreted as, recommendations or investment advice. The opinions expressed in this article represent the current, good-faith views of the author(s) at the time of publication. The views are provided for informational purposes only and are subject to change. This material does not take into account any investor’s particular investment objectives, strategies, tax status, or investment horizon. Investors should consult a financial advisor for advice suited to their individual financial needs. Putnam Investments cannot guarantee the accuracy or completeness of any statements or data contained in the article. Predictions, opinions, and other information contained in this article are subject to change. Any forward-looking statements speak only as of the date they are made, and Putnam assumes no duty to update them. Forward-looking statements are subject to numerous assumptions, risks, and uncertainties. Actual results could differ materially from those anticipated. Past performance is not a guarantee of future results. As with any investment, there is a potential for profit as well as the possibility of loss.

Diversification does not guarantee a profit or ensure against loss. It is possible to lose money in a diversified portfolio.

Consider these risks before investing: International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Bond investments are subject to interest-rate risk, which means the prices of the fund’s bond investments are likely to fall if interest rates rise. Bond investments also are subject to credit risk, which is the risk that the issuer of the bond may default on payment of interest or principal. Interest-rate risk is generally greater for longer-term bonds, and credit risk is generally greater for below-investment-grade bonds, which may be considered speculative. Unlike bonds, funds that invest in bonds have ongoing fees and expenses. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. Commodities involve the risks of changes in market, political, regulatory, and natural conditions. You can lose money by investing in a mutual fund.

Putnam Retail Management.