December 13, 2012

Some of the firm's top experts gave their forecasts for the coming year for U.S. and international stocks, as well as health-care stocks.

  • U.S. Equities Outlook: Within a challenging macro environment, we are cautiously optimistic as valuations are reasonable and corporate fundamentals remain strong.
  • International Equities Outlook: Developed markets are likely to continue to struggle, while major emerging markets should be in recovery mode and outperform over time.
  • Health-Care Outlook: Entitlement reform must include healthcare. But investing in innovation will continue to be in fashion, regardless of the political/policy headwinds.

There are inherent risks associated with investing in the stock market, including possible loss of principal, and investors must be willing to accept them. International investing is subject to unique risks including unfavorable currency exchange rates and political or economic uncertainty abroad. Investments in emerging markets are subject to the risk of abrupt and severe price declines. Fund's that focus on a specific sector may experience greater share price volatility than that of more diversified funds. Investors should note that if interest rates rise significantly from current levels, bond fund total returns will decline and may even turn negative in the short term.

The views are as of November 20, 2012 and may have changed since that time. This information is provided for informational purposes only and is not intended to reflect a current or past recommendation, or investment advice of any kind. Opinions and commentary do not take into account the investment objectives or financial situation of any particular investor or class of investor. Investors will need to consider their own circumstances before making an investment decision.