<font color=red>Morningstar's ETF conference</font> Vanguard and BlackRock see good times ahead

Downside risks are clear and present but 5-, 10-year outlooks solid, strategists say.
OCT 16, 2013
The short-term uncertainty around the debt ceiling isn't diminishing the long-term outlook at The Vanguard Group Inc. or BlackRock Inc. “We're cautiously optimistic,” Joe Davis, Vanguard's chief economist, said Thursday at Morningstar Inc.'s ETF Invest Conference in Chicago. “There are significant downside risks to the long term in the short term, but over the next five to 10 years, we expect to break through this cycle of low growth.” Mr. Davis is optimistic because he sees investments by U.S. corporations, which are currently at the lowest levels since the 1930s, picking up again to invest in new technologies such as 3-D printing and nanotechnology. The “share of economy dedicated to investments is the lowest we've seen in a generation,” he said. “It's not sustainable. Eventually, investment has to rebound, and that's a sustainable driver of growth for the economy.” Heidi Richardson, global investment strategist at BlackRock, was equally bullish on the long-term prospects of the U.S. “Fundamentally, everything is in place for continued growth in the U.S.,” she said at the conference. BlackRock is currently overweight cyclical stocks such as materials, and underweight defensive sectors such as utilities, because of their high valuations. While Ms. Richardson is bullish on the U.S., she's even more bullish on emerging markets. “We favor emerging markets over developed markets for the next five years, not only in equities but bonds, as well,” she said.

Latest News

Workers are financially drowning and retirement savings is a major red flag
Workers are financially drowning and retirement savings is a major red flag

Transamerica Institute survey reveals a stark divide between employer confidence and workers' financial reality.

SEC corporate enforcement hits multi-decade low as agency refocuses on fraud
SEC corporate enforcement hits multi-decade low as agency refocuses on fraud

Just five actions were started in the first half of fiscal 2026, a new analysis finds.

Beyond the Business: Why Advisors Must Help Owners Separate Wealth from Identity
Beyond the Business: Why Advisors Must Help Owners Separate Wealth from Identity

For business owners, the company is often more than an income source. It becomes their largest asset, their retirement plan, and in many cases, part of their identity. Advisors who understand that dynamics can deliver far greater value than traditional financial planning alone

Ex-Edward Jones advisor gets three-year prison sentence for stealing from widow
Ex-Edward Jones advisor gets three-year prison sentence for stealing from widow

John S. Winslow, 57, was indicted just over a year ago for his scheme to steal from an elderly client.

Vestmark, Hamachi push AI further for advisor portfolio intelligence
Vestmark, Hamachi push AI further for advisor portfolio intelligence

Hamachi's new model portfolio partnership and an industry-first solution from Vestmark join the growing wave of AI tools for wealth managers.

SPONSORED Beyond wealth management: Why the future of advice is becoming more human

As technical expertise becomes increasingly commoditized, advisors who can integrate strategy, relationships, and specialized expertise into a cohesive client experience will define the next era of wealth management

SPONSORED Durability over scale: What actually defines a great advisory firm

Growth may get the headlines, but in my experience, longevity is earned through structure, culture, and discipline