By Brian Jacobsen, Chief Portfolio Strategist; John Manley, Chief Equity Strategist;
and James Kochan, Chief Fixed-Income Strategist
You can’t see what you’re not looking at. Investors have been so fixated on the Federal Reserve (Fed) and fiscal austerity that they are missing much of both the short- and long-term forces at work in the companies whose securities they are actually buying and selling. One force that investors haven’t overlooked is the radical transformation of the energy sector due to unconventional gas supplies—not just in the U.S. but around the world. This is slow-moving and shouldn’t be expected to play itself out over the course of six months. It provides one example of how simply changing your focus from the next hot thing to the more sustainable future and going from measuring success in months to gauging it in years could pay off over the long haul. Revising your perspective from the short to the long term can help you stay rational when markets get irrational.
Overview | The economy | Equities | Fixed income | Asset allocation | The bottom line