Q2 2014 Market Charts
Access our market outlook for insights into key economic and financial market trends impacting investors with interactive economic charts and market charts, plus data relevant to equity, fixed income, municipal bonds and alternative mutual funds.
- Global economic activity in major economies is generally improving.
- Many global equity markets are generally trading at fair (but not longer cheap) valuations.
- Many fixed income sectors have positive year-to-date returns after a weak 2013.
- Gold and REITs have been among the best performing alternatives in 2014 thus far.
Welcome to the OppenheimerFunds Interactive Market Charts.
Over the course of a quarter, the analysts of our Capital Markets team review thousands of data points. Believing in the philosophy of “a picture can say a thousand words,” the team complies dozens of graphs and graphics that highlight what’s going on in the U.S. economy, stock markets worldwide, and the fixed income and alternative investment worlds. Each visual comes with a brief summary explaining the implications behind the trend each picture highlights.
View Market Charts by asset class
- Economic Overview
The global economy continues to grow at a modest pace.
- Global Equities
Many stock markets advanced again in early 2014, despite geopolitical concerns.
- Taxable Fixed Income
Many fixed income sectors started the year modestly higher as interest rates stabilized.
- Municipal Bonds
Municipal bonds rose in early 2014 as investors sought out bargains.
- Alternative Asset Classes
A look at REITs, MLPs, gold and other non-traditional investments.
Investments in securities of growth companies may be especially volatile. Value investing involves the risk that undervalued securities may not appreciate as anticipated.
Small and mid-sized company stock is typically more volatile than that of larger, more established businesses, as these stocks tend to be more sensitive to changes in earnings expectations and tend to have lower trading volumes than large-cap securities, creating potential for more erratic price movements. It may take a substantial period of time to realize a gain on an investment in a small or mid-sized company, if any gain is realized at all.
There is no guarantee that the issuers of stocks held by mutual funds will declare dividends in the future, or that if dividends are declared, they will remain at their current levels or increase over time.
Foreign investments may be volatile and involve additional expenses and special risks, including currency fluctuations, foreign taxes and political and economic factors. Investments in emerging and developing markets may be especially volatile.
Fixed income investing entails credit risks and interest rate risks. When interest rates rise, bond prices generally fall, and a Fund’s share prices can fall. Below-investment-grade (“high yield” or “junk”) bonds are more at risk of default and are subject to liquidity risk.
Asset-backed and mortgage-backed securities are also subject to prepayment risk.
Senior loans are typically lower rated (more at risk of default) and may be illiquid investments (which may not have a ready market).
A portion of a municipal bond fund’s distributions may be taxable and may increase taxes for investors subject to the alternative minimum tax (AMT). Capital gains distributions are taxable as capital gains.
Investing in the commodity markets involves potentially higher volatility and greater risk of loss of principal than traditional equity or debt securities. Commodity-linked investments are considered speculative and have substantial risks, including the risk of loss of a significant portion of their principal value.
Investing in a limited number of sectors, such as gold, oil and real estate, can increase volatility and exposure to issues affecting that sector.
Investments in securities of real estate and small-cap companies may be especially volatile. Because they do not have an active trading market, shares of Real Estate Investment Trusts (REITs) may be illiquid. The lack of an active trading market may make it difficult to value or sell shares of REITs promptly at an acceptable price.
Investing in MLPs involves additional risks as compared to the risks of investing in common stock, including risks related to cash flow, dilution and voting rights. Each Fund’s investments are concentrated in the energy infrastructure industry with an emphasis on securities issued by MLPs, which may increase volatility. Energy infrastructure companies are subject to risks specific to the industry such as fluctuations in commodity prices, reduced volumes of natural gas or other energy commodities, environmental hazards, changes in the macroeconomic or the regulatory environment or extreme weather. MLPs may trade less frequently than larger companies due to their smaller capitalizations which may result in erratic price movement or difficulty in buying or selling. Additional management fees and other expenses are associated with investing in MLP funds. The Oppenheimer SteelPath MLP Funds are subject to certain MLP tax risks. An investment in an Oppenheimer SteelPath MLP Fund does not offer the same tax benefits of a direct investment in an MLP. The Funds are organized as Subchapter “C” Corporations and are subject to U.S. federal income tax on taxable income at the corporate tax rate (currently as high as 35%) as well as state and local income taxes. The potential tax benefit of investing in MLPs depend on them being treated as partnerships for federal income tax purposes. If the MLP is deemed to be a corporation, its income would be subject to federal taxation at the entity level, reducing the amount of cash available for distribution which could result in a reduction of the fund’s value. MLP funds accrue deferred income taxes for future tax liabilities associated with the portion of MLP distributions considered to be a tax-deferred return of capital and for any net operating gains as well as capital appreciation of its investments. This deferred tax liability is reflected in the daily NAV and as a result a MLP fund’s after-tax performance could differ significantly from the underlying assets even if the pretax performance is closely tracked.
Diversification does not guarantee profit or protect against loss.
Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.
Before investing in any of the Oppenheimer funds, investors should carefully consider a fund's investment objectives, risks, charges and expenses. Fund prospectuses and summary prospectuses contain this and other information about the funds, and may be obtained by asking your financial advisor, visiting oppenheimerfunds.com, or calling 1.800.CALL OPP (225.5677). Read prospectuses and summary prospectuses carefully before investing.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc.
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