PNC Investment Corner - PNC
Investment Corner is your connection to PNC's investment expertise. Read the latest thinking from the investment strategy team and listen to key thought leaders from PNC talk about the impact of market or economic activity. From insightful commentary and economic updates to informative articles and videos, we invite you to explore these resources.

European Vacation

June

Repatriation Games

June

European Vacation

May

Around the World in Dividends

April

Future of the Eurozone

March

Investor Expectations

February/March

PNC’s 2017 Outlook

February/March

Active Management

February

Webinar Replay: New Year Insights

January

2017 Outlook: Part II

January

2017 Outlook: Part I

December

Smart Beta

November/December

The Ever-Mysterious Stock Market

November/December

Webinar Replay: Election Insights

November

The Election and Beyond

November

Election 2016

September/October

In Search of an Elusive Yield

September/October

Webinar Replay: September 22, 2016

September

Got Any TIPS

September

Doing What Comes Unnaturally

August

After Brexit, New Breginnings?

July/August

A REIT Of One’s Own

July/August

The New REIT Street

July

Argentina Returns

June

Back Where We Started

May/June

Smart Beta

May/June

Brexit Stage Left

May

April PNC Perspectives Webinar

April

Signs of Spring

April

Oil Prices – Going Down, Down, Down?

January/February

Election Year 2016 – Here We Go Again

January/February

The End of an Era: 2016 Outlook Part 1

December

  • Repatriation Games

  • PNC’s European Vacation

  • Are Investors Expecting Too Much?

  • PNC 2017 Outlook

  • Normal Abnormality in the Markets

  • The (not so) New World of Smart Beta

  • Election Days Are Here Again

  • In Search of an Elusive Yield

  • A REIT of One’s Own

  • After Brexit, New Beginnings?

  • Get Smart with Smart Beta

  • Back Where We Started Again

  • Oil Prices: Going Down, Down Down?

  • Election Year 2016 – Here We Go Again

August 14, 2017

August 7, 2017

July 31, 2017

July 24, 2017

July 17, 2017

July 10, 2017

July 3, 2017

June 26, 2017

June 19, 2017

June 12, 2017

June 5, 2017

June 2017: Midyear Update: Deciphering the Headlines

Investors have been kept busy thus far in 2017 trying to interpret a deluge of media reports, political events, economic data, and other news.

June 2017: Midyear Update: Deciphering the Headlines Commentary

We expect markets to continue to watch the Fed for signals of additional interest-rate increases while tracking policy actions from central banks worldwide. Movements in inflation and currencies are key factors to watch this year. We believe unforeseen outcomes in global politics could continue to surprise.

May 2017: European Vacation

In this Investment Outlook we discuss: an update on Europe, key political events, and European equities.

May 2017: European Vacation Commentary

We continue to believe 2017 will be an important year for the EU. This spring, markets are focused on the outcome of the presidential election in France, with the final vote by citizens on May 7. In early June, Britain takes to the polls again in recently announced snap elections.

April 2017: Around the World in Dividends

In this Investment Outlook we discuss, attributes of dividend-paying stocks, global economy and dividend opportunities, and investment implications.

April 2017: Around the World in Dividends Commentary

Dividend-paying firms tend to be mature and well established, with healthy balance sheets and cash flows. Their steady growth in earnings may be attractive to those investors looking for a long-term and stable place to invest.

March 2017: The Future of the Eurozone

Economic indicators show the Eurozone on a path of recovery. Europe’s economy is healing, and the evidence of this is in the data. Economic growth has accelerated and the employment picture is much improved.

March 2017: The Future of the Eurozone Commentary

In Europe, after the Brexit vote and votes in Italy, France, and Austria, we believe 2017 will be an important year for the European Union (EU). Key votes to be held this year in the EU include presidential elections in Germany and France as well as general elections in the Netherlands.

February 2017: Active Management: Past, Present, and Future

One of our themes for 2017 is life or death of active management, in which we acknowledge the precarious situation currently facing active management. We expand upon the theme in this Investment Outlook, highlighting a study we conducted as well as the research of others to develop a framework for understanding the past, current, and potential future environment for active management.

February 2017: Active Management: Past, Present, and Future Commentary

Although investors continue to favor actively managed funds over passive funds, it seems active managers have had a tougher time as of late. In fact, the past five years have been difficult for achieving outperformance relative to benchmarks.

January 2017: Themes: 2017 Outlook Part II

This month’s Investment Outlook reflects our view that 2017 will have many themes to consider. In late 2015, the Federal Reserve (Fed) began ushering in a new era by ushering out extraordinary measures aimed at supporting the economy following the financial crisis and Great Recession. In December 2016, the Fed raised interest rates for the second time since 2006, after the first initial raise off of zero in December 2015. The Fed currently forecasts an additional three raises in 2017 and three for 2018. PNC economists expect two raises in 2017 and three raises in 2018.

January 2017: Themes: 2017 Outlook Part II Commentary

In last month’s Market Commentary, we recapped some of the highlights from 2016 from a market perspective. This month, we jump to 2017 and review some of our themes for this year.

December 2016: 2017 Outlook Part I

Keeping with one of our themes going into 2016, monetary policy diverged this year. Market attention was focused on forecasting the Federal Reserve’s (Fed's) path for raising interest rates while expecting other central banks to continue to be accommodative, specifically the European Central Bank (ECB) and the Bank of Japan.

December 2016: 2017 Outlook Part I Commentary

2016 will be a year for the books, starting with the turbulent political scene surrounding the U.S. presidential election and the U.K. vote to leave the European Union. Beyond these two events, the potential for politically charged elections in other countries seems to be on the rise as we move into 2017.

November 2016: The Election and Beyond

The 2016 election will be held November 8, not news to anyone at this point. This election year has been filled with media attention and public scrutiny. From a market perspective, financial markets typically do not favor uncertainty, and some volatility entered the arena due to the fast-paced developments of the 2016 U.S. presidential campaign.

November 2016: The Election and Beyond Commentary

The 2016 presidential election cycle has garnered great interest and attention. The fast-paced developments of the campaign led to some volatility, as the financial markets typically don’t like uncertainty.

October 2016: On the Trail with Smart Beta

In this month's Investment Outlook we discuss: an introduction to smart beta and its uses, the PNC Smart Beta Allocation, and smart beta factors and backtesting.

September 2016: Got Any TIPS Commentary

Inflation has not been a problem for some time, but changes in a few key variables, such as the price of oil, could change that. This leads us to a discussion of monetary policy as the Federal Reserve monitors both inflation and employment to determine when to raise interest rates.

September 2016: Got Any TIPS

In this month's Investment Outlook we discuss: the current inflation environment, the Fed and inflation, and Treasury Inflation-Protected Securities (TIPS).

August 2016: Doing What Comes Unnaturally Commentary

It’s been an interesting year for markets, with a long list of global factors affecting investor sentiment, trading, and returns. After a modest start to the year, markets dropped sharply in June following the Brexit vote, followed by a strong market rally.

August 2016: Doing What Comes Unnaturally

In this month's Investment Outlook we discuss: short-term versus long-term active manager performance; using performance data to make active manager decisions; PNC’s portfolio construction process; and current performance of active managers.

July 2016: The New REIT Street Commentary

There is an upcoming change for REITs that has driven and will likely continue to drive funds into the asset class, which tends to have a positive impact on stock prices. Standard and Poor’s (S&P) has announced that REITs, currently grouped within the Financials sector, will be classified as a separate sector. Effective August 31, 2016, REITs will become the eleventh sector designated by S&P, Dow Jones, and MSCI in the Global Industry Classification Standard (GICS).

July 2016: The New REIT Street

Real estate investment trusts (REITs) have been one of the best performing asset classes this year. The FTSE NAREIT All Equity Index (FNER) is up 7.0% through June 24, 2016, and when the reinvestment of dividends in included, has returned 8.8%. This outpaces the S&P 500®, which has moved -0.3% in the same time period, up 0.8% on a total return basis.

June 2016: Argentina Returns Commentary

Once one of the world's largest economics, Argentina today is the twenty-first largest economy in the world and the second largest in South America. The country has a long history of political and economic woes, but it also has a new government that looks to be a turning point in Argentina's efforts to reinvent itself.

June 2016: Argentina Returns

After more than 15 years in technical default, Argentina re-entered the credit markets in April 2016 with a bond offering that was oversubscribed multiple times. It is no coincidence that in December 2015, for the first time since 1916, a nonradical or non-Peronist party candidate, Mauricio Macri, was democratically elected as president and sworn into office.

May 2016: Brexit Stage Left Commentary

On June 23, 2016, the United Kingdom (U.K.) will hold a referendum vote on whether to cede its membership in the European Union (EU). This movement, which began in whispers seemingly without much possibility of coming to fruition, has gained strength this year due to continued frustration with the perceived missteps of EU and U.K. leaders.

May 2016: Brexit Stage Left

On June 23, 2016, the United Kingdom (U.K.) will hold a referendum vote on whether to cede its membership in the European Union (EU). This movement, which began in whispers seemingly without much possibility of coming to fruition, has gained strength this year due to continued frustration with the perceived missteps of EU and U.K. leaders.

April 2016: Signs of Spring

Last month’s Investment Outlook, Market Madness, discussed the volatility and uncertainty that unhinged markets at the onset of 2016. A lot can happen in a month, and following a five-week rally in the markets, the S&P 500®has reversed its losses year to date and is up more than 11% from its February 11, 2016, low. One could simply ride the waves of bears and bulls, and curiously we notice how easily soothed investors can get with such a bounce back in the markets. But what does this really mean longer term? And do investors surrender to current market sentiment when making investment decisions.

March 2016: Market Madness

Markets kicked off 2016 amid a flurry of perceived global concerns, fueling a selloff in risk assets and amplifying volatility. Topically, concerns about global growth, China and its stock market, oil prices, the U.S. economy, the Federal Reserve (Fed) and the forward path of interest rates, and geopolitics are drivers of the uncertain outlook. The market response has been swift and certain, both as the market moved down and as it recovered. Our purpose in this outlook is to address concerns about how such markets can be interpreted and how to respond accordingly.

February 2016: New Investments Path with Smart Beta

In this month’s Investment Outlook, New Investment Paths with Smart Beta, PNC Chief Investment Strategist Bill Stone discusses a wide range of smart beta strategies which PNC believes can be an attractive addition to traditional investment portfolios.

January 25, 2016 – Earnings Snapshot 4Q15

Fourth quarter earnings season reached full speed last week, with 15% of S&P 500® constituents reporting thus far. Blended earnings of -6.0% (actual growth combined with consensus estimates) are trailing estimates from the start of the quarter, with the biggest drag from Energy and Materials. The percentage of companies beating expectations is relatively in line with levels seen over the past year at 72.4%. The earnings surprise of 270 basis points is a bit below levels from previous quarters, which tracked closer to 400-500 basis points. (Table 1). Excluding Energy, earnings are tracking a bit behind, although it is still early in the season, and based on historical upside, we expect this to turn positive as the season progresses.

January 7, 2016 - Global Market Unease

Global markets have had a tumultuous start thus far in the first few trading days of 2016, with a number of factors affecting market sentiment, triggering global equity markets to sell off. In the United States, the S&P 500® had its sixth-worst first trading day of the new year performance on Monday since 1928 (-1.53%). History has shown that reversion does tend to occur when markets have gotten off to a rough start, while we note the turnaround is typically not a quick occurrence.

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