Simple, but Not Easy

"[W]e can’t avoid the reality that we’re experiencing and probably will continue to experience stress, uncertainty, and change. But the question is, how do we cope?" — Sarah Newcomb Given recent market volatility, we thought it might be helpful to revisit this episode from July 13, 2020, which features two experts on investor behavior and decision-making. Sarah Newcomb, director of behavioral science at Morningstar, Inc., discusses emotions brought on by market loss, talks about how they can affect decisions, and offers some ways to cope. Ryan Murphy, head of decision sciences at Morningstar Investment Management, discusses cognitive biases to watch out for and ways investors can make better decisions. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Rising Interest Rates. New COVID-19 variants. Inflationary pressures. Those and other factors are on the minds of investors as we head into 2022. Will the new year be one of prosperity, or is it time to fortify your defenses? The truth is that it’s nearly impossible to know. And that’s why we at Morningstar follow a mantra of, ”Don’t predict—prepare.” In this episode, we ring in 2022 with our take on how to best prepare for what’s to come, no matter how handy you may or may not be with a crystal ball. In fact, we note that if you address the future properly, you don’t need to play soothsayer at all. It’s not about prognostication. It’s about preparation. And at the end of the hour, we hope you’ll have a clearer idea of how to be better prepared. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Environmental, social, and governance. More commonly called ESG, it used to be seen in many parts of the investment world as a niche specialty that was mostly about virtue—something that was nice to do. But now there’s been no question that it’s something we need to do, particularly coming out of Glasgow’s United Nations Climate Change Conference, known as COP26. Nearly 500 financial-services firms from around the world agreed to align $130 trillion with the goals specified by the Paris Agreement, with the objective of limiting global warming to 1.5 degrees Celsius. In this special short episode, we hear from Global Chief Investment Officer Dan Kemp on the ramifications of COP26 and the outlook for ESG for investment advisors and their clients in the coming year. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Inflation. It's showing up in headlines and in conversations between everyone from political pundits to investment professionals and clients. It’s no different for us here at Morningstar, and most of what we’re hearing boils down to two key questions: what are our views on inflation, moving forward, and what are we doing to prepare for the potential threat of a continuing rise? In this episode, the conversation revolves around what’s driving inflation in the short and long term, ways we can try to protect investors from it, and how our Real Return portfolio series aims to provide returns that beat inflation. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

China is a key talking point in the investment community today, as a regulatory crackdown has spooked markets. Chinese regulators have targeted specific sectors such as technology, education and real estate as part of a crackdown aimed at aligning the Chinese private sectors with its long-term policy agenda. In today’s episode, we will take a closer look at recent events in China and discuss both risks and potential opportunities in Chinese stocks today. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Changes in the corporate tax rate can have large, one-time effects on a company’s financial statements. Michael Budzinski, Senior Investment Analyst and Portfolio Manager, shares recent Morningstar Investment Management LLC research around corporate tax rate changes.  Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.

ESG investing, which focusses on an investment’s environmental, social, and governance impact or risk, has grown immensely in recent years, attracting significant inflows. But what happens to ESG investing during a market downturn? Are ESG considerations left by the wayside as investors focus on financial market risks? Ryan Murphy, Head of Decision Sciences for Morningstar Investment Management, discusses his research on the behavioral sustainability stress test. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

With stocks reaching new highs and companies borrowing at historically low rates, broad markets offer limited upside. So how should investors position their portfolios in face of that? Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

As more of the US reopens and people begin to return to their normal routines we’ve seen a disconnect between supply and demand, and many are worried that price increases are here to stay. Alfonzo Bruno, associate portfolio manager, shares insights around the current state of inflation, how to interpret updated guidance from the Fed, and how he anticipates inflation pressures around supply chains to ease in a post-pandemic market. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.

Other than the strong recovery this year, the energy sector has been avoided by many investors. Whether environmental concerns of an increasing number of ESG-focused investors or worries about the secular decline in oil revenues as the world transitions to renewal energy sources, energy stocks have been among the least popular investments out there. Philip Straehl, global head of research at Morningstar Investment Management, welcomes James Foot, Head of Research, Asia Pacific from Morningstar Investment Management Australia, to dive deep into why they think certain energy stocks may offer attractive long-term returns. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com for information about our collection and use of personal data for advertising.