2018 Market Outlook: Investors Should Focus on High Quality Securities, Fixed Income Products That Can be Responsive to Inter...
February 07 2018 - 8:30AM
Arrow Funds, sponsors of a family of innovative exchange traded
funds (ETFs) and mutual funds, today released its Market Outlook
for 2018.
Among the firm’s recommendations: Investors should focus on high
quality securities and fixed income products that can respond to a
changing interest rate environment. In addition, Arrow says
investors should look outside the U.S. for opportunities and
consider alternative strategies for defensive positioning.
“We are now in the middle of one of the longest economic
expansions in the country’s history, and with the new tax cuts in
place and the potential for substantial infrastructure spending on
the horizon, we expect the growth to continue,” said Joe Barrato,
CEO and Director of Investment Strategies at Arrow Funds. “However,
given where we are in the cycle, it’s important for advisors to
invest strategically, keeping in mind that markets can go down as
well as
up.”
Key points in Arrow’s 2018 Market Outlook include:
- Investors should consider a more prudent approach in 2018,
incorporating alternative investments that have the potential to
enhance returns while hedging risk;
- With the Fed in the early stages of a new tightening cycle,
consider funds that can respond to a changing interest rate
environment, including commodities and managed futures;
- Look abroad for opportunities in both equities and
income-generating investments;
- When in doubt, look at what some of the biggest endowments are
doing. Yale, for example, has moved to a diversified,
equity-oriented allocation that has been delivering strong
results.
The Arrow family of funds includes the multi-factor Arrow QVM
Equity Factor ETF, (NYSE:QVM); fixed income products like the Arrow
Dynamic Income Fund, (NASDAQ:ASFNX) and the ultrashort-term bond
ETF the Arrow Reserve Capital Management ETF (BATS:ARCM);
diversified multi-asset funds like the Arrow Dow Jones Global Yield
ETF (NYSE:GYLD); alternative investment strategies like Arrow
Managed Futures Strategy Fund (NASDAQ:MFTNX); a suite of offerings
built on the industry-leading technical analysis of Dorsey Wright
& Associates; and its endowment-like Arrow DWA Balanced Fund
(NASDAQ:DWANX) and its global macro strategy Arrow DWA
Tactical ETF (NASDAQ:DWAT).
Most recently, Arrow launched two international equity ETFs: the
Arrow Dogs of the World ETF (NYSE:DOGS), which finds value among
the worst performing international securities where a mean
reversion is expected; and the Arrow DWA Country Rotation ETF
(NASDAQ:DWCR), which offers a systematic price momentum
strategy.
“DOGS and DWCR are our ‘yin and yang’ when it comes to
approaching the international equity markets and were a natural
extension of our fund lineup,” continued Barrato. “When we look at
the 2018 market environment, we see a lot of opportunity for
investors looking to add tactical and adaptive strategies into the
mix, but it’s important that investors consider correlations to
achieve true diversification. That is a major theme of our outlook
piece this year, which we’re very pleased to be sharing with
investors and advisors.”
About Arrow: Arrow Funds,
including the exchange traded product line ArrowShares, is a
company that offers targeted portfolio solutions for ever-changing
markets. The company’s vision is to be the leading provider of
alternative and tactical investment solutions with a focus on
education, research and client service as the cornerstones. To
learn more, visit www.ArrowFunds.com.
Shares of exchange traded products are bought and sold at market
price, not NAV, and are not individually redeemed from the fund.
Buying and selling shares generally results in brokerage
commissions which will reduce returns. The market price may be
higher (premium) or lower (discount) than the Net Asset Value
(NAV).
Before investing, please read the prospectus and shareholder
reports to learn about the investment strategy and potential risks.
Investing involves risks, including the potential for loss of
principal. An investor should consider the fund’s investment
objective, charges, expenses and risks carefully before
investing. This and other information is contained in
the prospectus, which can be obtained by calling
1-877-277-6933. Content reviewed by an affiliate, Archer
Distributors, LLC (member FINRA). AD-020618
Media Contact:Chris
Sullivanchris@macmillancom.com, (212) 473-4442
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