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Guggenheim: Equity Market Views: Q1 2020

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Guggenheim recently released its Q1 2020 Equity Market Views.  Topics include:

Looking Back – Q2 Review

A pivot to easing mode by the Federal Reserve (Fed) and progress in the trade war with China led to the best annual total return for the S&P 500® Index since 2013.For the year, the S&P 500® Index (including dividends) gained 31.5 percent while the NASDAQ Composite Index gained 36.7 percent and the Dow Jones Industrial Average added 25.3 percent.2

Looking Ahead

Despite the strong gains over the course of last year, Guggenheim continues to believe the bull market remains intact and further upside is likely in the year ahead. While a repeat of the strong 2019 performance is not likely, the macro environment should remain supportive of moderate gains.

Positioning 

Given the elevated premiums in growth and the low probability of significant economic expansion affecting the earnings profile of value, investing at this stage of the market cycle is slightly more nuanced. Guggenheim believes it is best to remain focused on secular growth, but investors should be cognizant of premium valuations. 

Key Return Drivers

  • Earnings Growth
  • Multiple Expansion
  • Dividends
  • Portfolio Flows

For more information regarding Guggenheim’s 1st Quarter Equity Market Review and to read the full paper including UIT Investment Implications, please click on the link below:

Market Views: First Quarter 2020

1,2 Bloomberg 1.6.2020

Investing involves risk, including the possible loss of principal.

This material is distributed or presented for informational or educational purposes only and should not be considered a recommendation of any particular security, strategy or investment product, or as investing advice of any kind. This material is not provided in a fiduciary capacity, may not be relied upon for or in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. The content contained herein is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.

 This material contains opinions of the author or speaker, but not necessarily those of Guggenheim Partners, LLC or its subsidiaries. The opinions contained herein are subject to change without notice. Forward looking statements, estimates, and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable, but are not assured as to accuracy.  Past performance is not indicative of future results. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information. No part of this material may be reproduced or referred to in any form, without express written permission of Guggenheim Partners, LLC.

 ©2020 Guggenheim Partners, LLC. Guggenheim Investments represents the investment management business of Guggenheim Partners, LLC. Securities offered through Guggenheim Funds Distributors, LLC.

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