Jim Lowell Anticipates Market Volatility

Adviser Investments’ Chief Investment Officer Jim Lowell joined Bloomberg Daybreak Asia to discuss politics, trade wars, second-quarter earnings, emerging markets and more. He sees the potential for stockA financial instrument giving the holder a proportion of the ownership and earnings of a company. and bondA financial instrument representing an IOU from the borrower to the lender. Bond issuers promise to pay bond holders a given amount of interest for a pre-determined amount of time until the loan is repaid in full (otherwise known as the maturity date). Bonds can have a fixed or floating interest rate. Fixed-rate bonds pay out a pre-determined amount of interest each year, while floating-rate bonds can pay higher or lower interest each year depending on prevailing market interest rates. market volatilityA measure of how large the changes in an asset’s price are. The more volatile an asset, the more likely that its price will experience sharp rises and steep drops over time. The more volatile an asset is, the riskier it is to invest in. as we look past earnings to the November midterm elections. The threat of a trade war increases the possibility of Wall Street turbulence. Until then, however, Jim remains cautiously optimistic because of strong economic data, U.S. consumer health and positive earnings results. That said, Jim believes that U.S. stock markets could be nearing a “tipping point” at which higher interest rates and a stronger dollar may begin to impact stock performance.