According to Stephen Wood,PhD,chief market strategist at Russell Investments,what we're looking at is a square root sign,a market plateauing at a lower rate of growth.It's probably a significant slow patch in the overall recovery.This is not terribly surprising.
There are gonna be choppy markets.Consider Japan,the Middle East,the Greek debt issue-a lot of headlines could cause volatility.
You're probably in a lower return environment.A portfolio should be globally diversified and have more equities,commodities and infrastructure.
Dr.Wood likes JP Morgan Chase.It has a 2.40 yield and is an industry leader,coming through the financial crisis extremely well.It has a strong balance sheet and is a good,old-fashioned consumer bank.
He also favors Pfizer.The economy's gonna do O.K.,but not spectacularly.Pfizer levels the volatility.People stay in it longer.People are gonna have to ride out the volatility with a more disciplined long term time horizon.
As for Google,longer term,it's probably gonna be a name that's the 500-pound gorilla in its space,Stephen Wood believes.
Stephen Wood has been with Russell Investments since 2005.He has conducted research on the economy,capital markets,portfolio strategies and investor behavior,also serving as a commentator on those topics.In addition,Dr.Wood has worked with institutional clients and retail partners to explain Russell's investment process and portfolio management.
JP Morgan Chase(JPM),Pfizer(PFE),Google(GOOG)
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