MFS Strategist's Corner: Focus on the Fundamentals

Boston / Zurich, 4 October 2016

In the MFS Strategist's Corner, Chief Investment Strategist James Swanson comments on the importance of growth in cash flow and profits:

1. Cash flow is the ultimate driver of stock prices. Along with low yields, high profits formed the two pillars contributing to the rally since the financial crisis.
2. Recently growth in cash flow and profits have weakened.
3. In a low-interest-rate world, not only stocks offer the best and only investment alternative. High-grade corporate bonds, due to their historically lower volatility than stocks and enough anticipated return, may strengthen the portfolio.

Please read James Swanson's full commentary here:

Strategist's Corner: The Market Has Lost One of its Pillars of Support

ENDS