Commentaries, white papers, and news items are listed here as they become available. To view and sort by date or category, please visit the Wilshire Advisor Solutions Knowledge Center. For media inquiries pertaining to Wilshire Associates, please contact our corporate headquarters at 1-310-451-3051.

Thursday, May 2, 2019

» Investment Strategy Update, May 2019
Alternatives, Commentary

Global Equities Rally: Global equities have rallied off the lows of December 2018, particularly U.S. equities, which have reached new highs. While the initial recovery was driven by attractive valuations, the dovish tone of global central banks has been supportive of equities moving higher as the interest rate tightening cycle has ended. This has resulted in a significant decline in global government bond yields. While lower bond yields are supportive of the equity risk premium on a global basis, the bond market and the equity market are sending contrasting signals. Bonds are pricing in much slower growth and inflation, and equities are pricing in optimistic expectations of future earnings growth, specifically in the U.S.

Tuesday, February 5, 2019

» Investment Strategy Update, February 2019
Alternatives, Commentary

Discipline Outperforms Emotion: Global investor sentiment deteriorated in the fourth quarter of 2018, and the trend lower in risk assets escalated during the month of December as restrictive monetary policy began to weigh on sentiment and risk. Over the past two years, the Federal Reserve has been gradually and judiciously implementing a path to raising interest rates as the economy has demonstrated signs of stable economic growth. In 2018, the U.S. economy largely benefited from sizable tax cuts, predominantly in corporate taxes, which not only boosted corporate earnings but facilitated strong economic growth. It has yet to be seen, however, if the benefit of lower taxes will persist into 2019 and beyond, particularly in the face of tighter monetary policy.

Friday, November 9, 2018

» Investment Strategy Update, November 2018
Alternatives, Commentary

Positioning for Volatility: Global investor sentiment began to moderate during the third quarter of 2018, particularly in the U.S., as growth equities rallied on strong earnings expectations and positive economic momentum supported demand for risk assets. Concerns about strong economic growth and inflationary pressures fueled a surge in bond yields late in the quarter, weighing on the rally for momentum stocks witnessed for most of the year and resulting in a meaningful correction in October. Enthusiasm about the new U.S. administration’s execution on tax reform and the immediate impact on the economy and corporate earnings continues to be clouded by concerns about trade policy.

Friday, August 10, 2018

» Investment Strategy Update, August 2018
Alternatives, Commentary

Shortening Duration and Seeking Opportunity in Value, International: This quarter, we are remaining overweight to foreign equities, which we reduced early in the second quarter due to concerns about the headwinds of dollar strength, and slowing business momentum overseas. We remain consistent in our slightly cautious risk posture, favoring government bonds in our fixed income allocation and value in our equity allocation.

Tuesday, June 12, 2018

» Managing Downside Risk with Factor-Based Investment Strategies
Alternatives, White Papers

With equity valuations at historically high levels and market volatility relatively low, advisors are looking for ways to diversify client portfolios to protect against equity market declines. Historically investors diversified across asset classes and geographical regions. But as we learned from the financial crisis, in times of extreme market volatility, many traditional asset classes can become highly correlated. In addition, because of the current low-interest-rate environment and with central banks poised to raise rates in the future, there could be further breakdown in correlation between stocks and bonds as interest rates rise.

Monday, May 7, 2018

» Investment Strategy Update, May 2018
Alternatives, Commentary

Positioning Defensively in Fixed Income and Equities: Global equity markets witnessed a dramatic spike in realized and implied market volatility during the first quarter of 2018, as sentiment quickly shifted on concerns of higher inflation (most notably wage inflation) and a higher likelihood of more interest rate hikes in 2018. 


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