Insights / Blogs

Insights / Blogs

On The Lookout

James Swanson, Chief Investment Strategist, helps readers make sense of the markets by sharing what he learns along the way.

Showing posts with label opportunity risk. Show all posts
Showing posts with label opportunity risk. Show all posts

August 14, 2015

Thinking Twice About Profits, Currency and Opportunity Risk

  • Markets may be focused on China’s devaluation, but I’m still paying attention to US profits.
  • A commodity-driven earnings recession has plagued capital-heavy sectors like energy and materials.
  • I think missing out on a renewed market advance could be the biggest risk for equity investors.

While the markets have been fixated recently on China’s currency moves, I have other things on my mind. I’ve been thinking that it has now been six years since the end of the last recession — making this expansion one year older than the average life span of business cycles after World War II. And for most of these six years, the United States has been on an impressive ride, both for company profits and the equity markets.