Chart of the week

Conservative goals suggest heightened need for alternative investments

Are investors falling out of love with the bull market? This week’s chart notes a shift toward fear as pressures mount across traditional markets.

February 15, 2020 | 1 minute read
  • Following a banner year in 2019, traditional equity and fixed income markets have maintained a strong momentum into 2020. Already up nearly 5% year to date, U.S. stocks reached another new all-time high this week.1 Meanwhile, falling interest rates have helped support the Barclays Agg, which has returned approximately 1.7% this year.1
  • However, given the combination of the current historic bull run, which is poised to enter its 11th year in March, and stock valuations that have become increasingly stretched, many investors appear to have increasingly moved toward the “fear” end of the fear-greed investment spectrum.
  • According to a study FS Investments conducted in partnership with InvestmentNews Research, investors’ main areas of focus with their advisors for the next five years are traditionally very conservative. As the chart shows, their top three goals include protecting against investment losses, generating income and diversifying their portfolios.2
  • Against a backdrop of outstanding returns for the traditional 60/40 portfolio in recent years with mounting pressures across traditional stock and bond markets, investors may benefit in the coming years by turning to alternative investments to meet their income and portfolio diversification needs.

  • As of February 13, 2020. U.S. stocks are represented by the S&P 500 Index.

  • FS Investments and InvestmentNews Research,

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