Brown and Company Investment Team meets the MFS executives for a market update
The Brown and Company research team sat down with MFS on September 10th for an update on the financial markets and the MFS investment lineup most relevant to our clients. The Massachusetts-based investment firm is one of the oldest U.S. based investment firms to offer mutual funds to retail investors. MFS has a history of active management, preferring to actively manage portfolios instead of indexing their portfolios.
The house view from MFS is that the U.S. and global economies are strong and should remain reasonably healthy in the near future.
• Corporate earnings are healthy, and even robust, in the U.S.
• Valuations have actually come down in the U.S. stock market this year, as profit growth has outpaced stock market performance
• Consumer confidence remains at elevated levels in the U.S.
• Stocks remain reasonably priced, given the earnings growth
• They expect the U.S. economy to outperform the global economy for the remainder of 2018. Slowing growth in Europe and challenges for the emerging markets will be a headwind to foreign stocks over the medium term.
We were most interested in their U.S. value manager and their international managers. There was mostly positive news to report regarding their strategies.
• Their focus on high quality names in the international space has driven outperformance, along with an underweighting to European banks
• U.S. value is traditionally focused and targets defensive names.
• They are specifically underweight energy and tech in this environment
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
MFS and LPL Financial are separate entities.