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Investing Snapshot: Recent Insights on the Financial Markets

Wayne Wicker, Senior Vice President and Chief Investment Officer, ICMA-RC and Vantagepoint Investment Advisors, recently shared his perspectives about the upcoming corporate earnings season and the impact it may have on the market with the hosts of the TD Ameritrade Network. See the video for Mr. Wicker’s insights.

Among his insights, Mr. Wicker noted that uncertainty about tariffs and Washington’s ongoing trade negotiations with China and other countries has made it difficult for companies to plan ahead. If some of the questions surrounding tariffs and trade talks are eliminated, he said, the stock market will likely benefit.

In addition, Mr. Wicker discussed emerging-markets stocks, which some say are trading at attractive valuations in the wake of the recent market downturn. Mr. Wicker noted, however, that there are still plenty of safer opportunities for investors in the stocks of U.S.-based companies, particularly considering where we are in the market cycle and other factors. While emerging markets may be viable for long-term investors, he said, in the short term those investors may be penalized by the market’s swings.

Mr. Wicker also pointed out that investors tend to overreact to the market’s moves – both on the downside in sell-offs and on the upside in run-ups. He noted that the release of companies’ quarterly earnings reports and outlooks in coming weeks will likely give investors more information about their prospects in 2019, adding that this should give investors opportunities to identify stocks that may be winners over the coming year.