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Q2 2014 Investment Viewpoints

The New Year brought a reversal of course from the torrid equity returns and rising interest rates of 2013. An anticipated market correction and corresponding rally in treasuries coincided with unsettling headlines from important emerging markets and disappointing economic activity at home. The equity correction proved short lived, however, and U.S. and European markets retested recent highs as volatility fell back towards historically low levels.1

2014 was never likely to offer the smooth ride we enjoyed in 2013. A year ago, pervasive skepticism and enduring investor risk aversion generally left equity with very reasonable prices. Today, most markets are generally trading at fair (but no longer cheap) valuations. Still, we maintain that the case for global equities to outperform bonds and for credit and equity-like income strategies to outperform treasuries is nearly as compelling today as it was at the beginning of 2013. Global economic activity in major economies is generally improving, but not enough to raise inflation fears. With the wholesale repricing of equities from oversold conditions behind us, investors should not expect the broadly robust returns of 2012 and 2013. Rather, we believe investors should become more selective and turn their focus to companies taking advantage of long-term, enduring global growth trends. With real economic activity modest and inflation low, investors should also not expect another sizeable rise in interest rates. This economic environment continues to favor income sources that accept credit or equity risk and minimize interest rate risk.

OppenheimerFunds’ Market Charts are designed to provide a comprehensive update of important economic and financial market developments to help investors make more informed investment decisions. Using our Q2 2014 Market Charts, we have identified five Investment Viewpoints as well as the Oppenheimer funds we believe investors should consider as they work to position their portfolios for the future:

  • Viewpoint 1
    Global Equities: Stocks Remain Attractive Relative to Bonds
  • Viewpoint 2
    European Equities: Valuations Appear Compelling
  • Viewpoint 3
    Dividend-Paying Equities: Taking Advantage of Today's Changing Dividend Landscape
  • Viewpoint 4
    Senior Loans: The Credit Cycle Does Not Appear to Be Over
  • Viewpoint 5
    Master Limited Partnerships: Markets Differentiating Winners and Losers

Access Q2 Investment Viewpoints.

  1. Source: Chicago Board Options Exchange Volatility Index, 2/28/14.

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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.

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.

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