Market intelligence
Putnam's portfolio managers and market strategists offer their views of the global investment landscape, including where they see the greatest risks and most compelling opportunities.
Download complete Capital Markets OutlookKey takeaways
- A record drop in volatility does not signal imminent market reversal.
- Europe’s lag in the rally points to a possible source of weakness.
- Muted rise in bond yields may reflect economic concerns.
Market rallied as risks retreated
Head of Global Asset Allocation Jeff Knight explains why 2012 represents a different market environment than 2011.
Key takeaways
- Greece defaults, but orderly, well-anticipated restructuring offers reasons for optimism on situation in Europe
- High-yield and RMBS sectors lead market rebound in the United States
- Municipal bonds continued to post gains after a handful of high-profile defaults to finish 2011
- Emerging-market debt rally may be difficult to sustain over the longer term
Market rallied as risks retreated
Head of Global Asset Allocation Jeff Knight explains why 2012 represents a different market environment than 2011.
The opinions expressed in this article represent the current, good-faith views of the author(s) at the time of publication and are provided for limited purposes, are not definitive investment advice, and should not be relied on as such.
Consider these risks before investing: International investing involves certain risks, such as currency fluctuations, economic instability, and political developments. Investments in small and/or midsize companies increase the risk of greater price fluctuations. Funds that invest in bonds are subject to certain risks including interest-rate risk, credit risk, and inflation risk. As interest rates rise, the prices of bonds fall. Long-term bonds are more exposed to interest-rate risk than short-term bonds. Unlike bonds, bond funds have ongoing fees and expenses. Lower-rated bonds may offer higher yields in return for more risk. Funds that invest in government securities are not guaranteed. Mortgage-backed securities are subject to prepayment risk. Commodities involve the risks of changes in market, political, regulatory, and natural conditions.
Investors should carefully consider the investment objectives, risks, charges, and expenses of a fund before investing. For a prospectus, or a summary prospectus if available, containing this and other information for any Putnam fund or product, call your financial representative or call Putnam at 1-800-225-1581. Please read the prospectus carefully before investing.
© Putnam Retail Management