Waddell & Reed

Market Perspectives

Markets again face volatility and uncertainty in 2012, and we expect slow global economic growth to continue early in the year. But we think government policies and declines in commodity prices may allow growth to improve in the second half. Ivy Funds Global Economist Derek Hamilton explains.
The Federal Reserve opens 2012 with a new slate of policy voters and a promise to reveal more details about interest rate expectations. “Federal Reserve outlook: Will 2012 be the ‘year of the dove,’” looks at what’s on tap from the central bank.
Despite some pundit forecasts of a collapse, the municipal bond market did not crumble in 2011. “Muni bond market looks to 2012 after predictions of 2011 collapse prove greatly exaggerated,” examines what the pundits got wrong and looks at factors contributing to how the market might fare in 2012
With economic fundamentals in the U.S. improving, CEO Hank Herrmann discusses his positive outlook for domestic equities. While the macro issues around the world simmer, we believe the U.S. may be one of the more attractive places to invest in a challenging global environment.
Price movements in global markets have caused some to suggest that stocks are more volatile than at any point in recent decades. While stocks can be volatile, especially in response to major events, historical market data show that prices typically have returned to less volatile patterns over time.
European officials and the world’s monetary authorities are working to contain the expanding debt crisis. “European crisis: Pressure mounts as new leaders emerge,” examines some of the recent events and includes a schedule of key dates through the end of the year.
In the current bond market there is a lot to digest with events unfolding both in the U.S. and abroad as nation’s work to control their debt. What should an investor do?
Corporate profitability is high and balance sheets are strong. Many companies in the U.S. and overseas are using their cash for dividend payments, providing income to investors during this time of low interest rates.
Investors have worked hard for months to keep up with the rapidly changing developments in Europe’s ongoing sovereign debt crisis, which is having an impact far beyond that region of the world. The crisis hit another difficult patch in early November as attention again turned to Italy.
Uncertainty in economic indicators and markets has increased, based on factors ranging from an increase in debt levels in the developed world to rapid growth in emerging markets. What is causing the uncertainty and how can investors respond? Waddell & Reed Global Economist Derek Hamilton explains.
Cloud computing is attracting an increasing amount of attention and investment dollars. Take a look at where the Waddell & Reed Advisors Science and Technology team is finding compelling opportunities created by this new technology.
Recent volatility across the financial markets has created questions and concern for many. In a letter to investors, Henry Herrmann, Chairman of the Investment Policy Committee, addresses issues that have roiled the markets, while providing his insight on the current market picture.

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