Tag Archives: MRIC

Milliman FRM Market Commentary: September 2017

Developed markets charged ahead as emerging market (EM) equities snapped a 9-month streak of positive returns. In this month’s commentary, Milliman’s Joe Becker, Adam Schenck, and Jeff Greco address the following:

• Equity market volatility remained historically low in September, capping off a record-setting Q3.
• September locked in a stat for the US equity market not seen since Dwight Eisenhower was president.
• A divergence of inflation metrics weighs on the Fed as it begins balance sheet normalization.

To learn more, download the full commentary at MRIC.com.

Milliman FRM Market Commentary: August 2017

Emerging market (EM) equities pushed higher in August as the rest of world took a breather. In this month’s commentary, Milliman’s Joe Becker addresses the following:

• With their ninth consecutive month of positive returns, EM equities are having their best year since 2009.
• US equity market volatility was low on average, but was itself volatile, finishing the month at its highest level since May.
• The yield curve flattened as the yield on the 10-year Treasury saw its largest one-month decline since June 2016.
• Heading into 2018, a confluence of fiscal and monetary circumstances have the potential to significantly affect the supply of and demand for government bonds and, by extension, interest rates.

To learn more, download the full commentary at MRIC.com.

Milliman FRM Market Commentary: May 2017

Stocks are seemingly indefatigable, marking their seventh consecutive month of positive returns. In this month’s commentary we address:

• Equity market volatility exhibits an inverse relationship with stock/bond correlation. This is a benefit to managed risk funds.
• As a result of ongoing low volatility, managed risk funds have generally implemented their respective maximum equity allocations for most of 2017.
• Market-based measures of financial risks are near precrisis lows. How does a managed risk approach fit in that context?

To learn more, read Joe Becker‘s full commentary at MRIC.com.

TIPS vs. dividends: Inflation deliberation

Treasury inflation-protected securities, or TIPS, are often considered the ideal risk-free investment in retirement. Their government backing virtually eliminates credit risk, and the consumer price index (CPI) adjustment on the principal ensures that its value will rise with inflation. Milliman consultant Joe Becker offers more perspective at MRIC.com.

Milliman FRM market commentary: March 2017

S&P 500 dividends have increased at more than two times the rate of inflation over the last 30 years.

The S&P 500 CAPE ratio sits above its pre-crisis peak. Year-over-year PCE, the Fed’s preferred measure of inflation, climbed above 2% for the first time since 2012. An ocean of excess reserves diminishes the Fed’s ability to respond to inflation. Risk management, like insurance, is only a benefit when implemented ahead of a risk event.

To learn more, read Joe Becker‘s full commentary at MRIC.com.