Lincoln Financial Releases Its Q4 Market Intel Exchange Report, a Comprehensive Analysis of Top Industry Trends and Themes on the Minds of Investors
07 10월 2024 - 10:00PM
Business Wire
This quarter's report highlights the impacts of the Federal
Reserve’s rate cutting cycle and market expectations surrounding
presidential elections
Lincoln Financial (NYSE: LNC) released its latest edition of
Market Intel Exchange, curated from the firm’s in-house investment
expertise and in partnership with industry-leading asset managers,
known as Lincoln’s Multimanager Platform. In conjunction with this
data, Jayson Bronchetti, Chief Investment Officer, shares a
high-level overview of the takeaways, using visuals from the report
in the company’s CIO Perspectives video.
Key insights from the latest edition include:
What the start of the Fed rate cutting cycle may mean for
investors: The Federal Reserve recently began its highly
anticipated easing of monetary policy with a 50-basis point
reduction as their attention turns from inflation to the labor
market. With additional easing expected, investors are assessing
the potential implications for their portfolios. This may be a
catalyst for cash to begin moving off the sidelines as yields on
cash equivalents have historically declined 2% on average within
twelve months of the first cut. U.S. equities generally see
positive returns after the start of cuts, but results are highly
dependent on the state of the U.S. economy. Regardless of where
this cycle lands, investors should stay focused on their long-term
financial goals, as stock performance in the five years later has
historically generated positive returns, even when coinciding with
a recession.
How have markets performed in the months surrounding
presidential elections: With the presidential election quickly
approaching, investors may begin to see volatility work its way
into equity markets if history is an indicator. However, research
shows that this choppiness tends to dissipate quickly once the
results are in. Markets have also historically experienced a strong
rally following election day, gaining roughly 16% on average over
the subsequent eight months, and 11.6% annually over the next
decade. Regardless of which party prevails, investors are likely to
be rewarded by exercising patience and maintaining a balanced
portfolio.
Market volatility should be seen as an opportunity for
investors: Market volatility is a feature, not defect, of
investing, and the numbers show that investors can consider times
of unease as opportunities, rather than setbacks. Using the daily
closing prices of the CBOE Volatility Index (VIX), a real-time
measure of expected near-term volatility of the S&P 500, an
investment made on any day had a solid average return just shy of
10% over the following year. However, an investment made on days
where VIX closed at elevated levels typically associated with
periods of stress performed significantly better, rising upwards of
25% or more on average over the subsequent 12 months. By viewing
volatility through an opportunistic lens, investors may feel
empowered to not only stay the course through periods of
turbulence, but perhaps even capitalize on the opportunity to put
additional capital to work for the long-term.
“Lincoln Financial is proud to bring timely market insights and
data to financial professionals and their clients every quarter. In
partnership with our dedicated team of investment professionals,
and our robust multimanager platform, we continue to help our
customers achieve their long-term investment goals,” said
Bronchetti.
More insights from Lincoln Financial and its network of asset
management partners can be found on the Market Insights page on
LincolnFinancial.com.
About Lincoln Financial
Lincoln Financial helps people to plan, protect and retire with
confidence. As of December 31, 2023, approximately 17 million
customers trust our guidance and solutions across four core
businesses — annuities, life insurance, group protection, and
retirement plan services. As of June 30, 2024, the company had $311
billion in end-of-period account balances, net of reinsurance.
Headquartered in Radnor, Pa., Lincoln Financial is the marketing
name for Lincoln National Corporation (NYSE: LNC) and its
affiliates.
© 2024 Lincoln National Corporation. All rights reserved.
Lincoln Financial is the marketing name for Lincoln National
Corporation and insurance company affiliates, including The Lincoln
National Life Insurance Company, Fort Wayne, IN, and in New York,
Lincoln Life & Annuity Company of New York, Syracuse, NY.
Variable products distributed by broker-dealer/affiliate Lincoln
Financial Distributors, Inc., Radnor, PA. Securities and investment
advisor services may be offered through non-affiliated broker
dealers.
This material is provided by The Lincoln National Life Insurance
Company, Fort Wayne, IN, and, in New York, Lincoln Life &
Annuity Company of New York, Syracuse, NY, and their applicable
affiliates (collectively referred to as “Lincoln”). This material
is intended for general use with the public. Lincoln does not
provide investment advice, and this material is not intended to
provide investment advice. Lincoln has financial interests that are
served by the sale of Lincoln programs, products and services.
LCN-7088300-100324
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Tina Madon 800-237-2920 Investor Relations
InvestorRelations@LFG.com
Chrissie Dwyer 484-319-5069 Corporate Communications
Chrissie.Dwyer@LFG.com
Lincoln National (NYSE:LNC)
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Lincoln National (NYSE:LNC)
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