Developed Market Equities Outlook

The video discusses global equity exposure, highlighting the disparity between US and international markets, particularly Europe and Japan. It emphasizes the importance of active management in the current economic climate, given rising interest rates and market volatility. The discussion also covers the benefits and challenges of active versus passive management, with a focus on fees and strategic stock selection. The video concludes with insights into market dynamics and the role of central banks in shaping investment strategies.

What is one reason for the recent outperformance of international developed equities compared to the US?

• Warmer weather in Europe

• Higher interest rates in the US

• Increased technology investments

• Stronger US dollar

Why might non-US developed markets take time to catch up with the US?

• Political instability

• Higher inflation rates

• Significant valuation discount

• Lack of technological advancement

In the current market environment, why is active management considered important?

• It is cheaper than passive management

• It eliminates market risks

• It helps navigate rising interest rates

• It guarantees higher returns

What is a key strategy to avoid pitfalls in active management?

• Ignoring market trends

• Focusing on price entry points

• Relying solely on technology stocks

• Investing in high-risk stocks

What is a primary focus for Voya in managing client investments?

• Investing heavily in emerging markets

• Keeping costs low

• Maximizing short-term gains

• Avoiding all risks

How does passive investing differ in a changing economic environment?

• It always outperforms active management

• It captures all market gains

• It is unaffected by interest rate changes

• It may not recognize undervalued stocks

What is a challenge of passive investing mentioned in the transcript?

• High management fees

• Lack of flexibility in stock selection

• Over-reliance on emerging markets

• Inability to invest in technology