Analysis October 28, 2026 at 02:55 AM
What do today's markets remind you of? In an early February tweet, Christine Benz, personal finance director of Morningstar, stated:
All down markets are different and it's early days, but this market pullback sure seems more like 2000 than 2008 or any of the more recent ones. (My int'l value fund has actually gained YTD!)
— Christine Benz (@christine_benz) February 4, 2022
"All down markets are different and it's early days, but this market pullback sure seems more like 2000 than 2008 or any of the more recent ones. (My int'l value fund has actually gained YTD!)"
Gary Shilling, A. Gary Shilling & Co.
Liz Ann Sonders, Managing Director, Chief Investment Strategist, Charles Schwab & Co.
Jim McDonald, Chief Investment Strategist, Northern Trust Asset Management
The current period has been very profitable for corporations, and strong earnings growth has underpinned excellent stock market returns. This supports our Global Policy Model overweight to developed market equities, which we favor over emerging markets.
The biggest risk we're concerned about is persistent inflation, which would justify a more hawkish Federal Reserve and higher interest rates. This concern supports our overweight to natural resources and our underweight to investment grade fixed income.
Finally, our overweight to high yield bonds is supported by the strong earnings outlook and the potential for higher interest rates — as high yield has outperformed investment grade bonds in all four of the recent rate hike cycles and even outperformed equities in two of those cycles.
