BNY Mellon's Wealth Management CIO: Despite Market Uncertainty, Opportunities Exist

Key to Investing Success: Staying Abreast of Market Conditions While Focusing on Long-Term Goals

Jul 25, 2012, 08:00 ET from BNY Mellon

NEW YORK, July 25, 2012 /PRNewswire/ -- Despite the persisting European debt crisis, slowing growth in China, the coming U.S. elections and other factors, investors who are able to look past the latest headlines and focus on the long term will be rewarded over time, according to a recent report from BNY Mellon Wealth Management.

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"Investors can't afford to be paralyzed by turbulence and uncertainty in the global markets," said Leo Grohowski, chief investment officer of BNY Mellon Wealth Management. "In this critical decade, investors need to be nimble to actively uncover investing opportunities rooted in solid fundamentals."

The wealth manager's Summer 2012 Investment Insights discusses the benefits of disciplined investing and avoiding moves in and out of the market in reaction to news of the day. "Unfortunately investors who backed out of the equity market after the third quarter swoon in 2011, missed out on strong gains we saw through the end of March this year," Grohowski said.

The paper outlines three key areas of potential opportunity:

Fixed income: BNY Mellon Wealth Management is underweight Treasuries and believes investors can find better income sources by diversifying across fixed income sectors, including investment grade corporate, municipal, emerging market and high-yield bonds. For tax-sensitive investors we believe high quality munis are still attractive relative to Treasuries, especially on an after-tax basis.

Equities: While fundamentals remain strong in this class, we expect current global conditions to heighten uncertainty over the next few quarters. U.S. corporations continue to provide strength to the recovery, while we continue to be overweight in emerging market equities, despite possible short-term pull back because of turmoil in Europe.  In our view developing markets offer the potential for long-term growth and attractive valuations, which is why we prefer them to developed international markets.

Diversifiers: Lower-correlated strategies can offer ways to help reduce risk amid uncertainty and smooth portfolio volatility. We are seeing potential opportunities in long/short hedge funds, macro-driven funds and private equity investments that can add value to portfolios owned by appropriate investors over the long term.

Investors greatly benefit from a portfolio that is customized to meet their particular goals, said Jeffrey Mortimer, director of investment strategy at BNY Mellon Wealth Management. "In light of their complex needs and investment portfolios, we encourage high net worth investors to turn to trusted advisors to help them successfully navigate this highly volatile and unpredictable environment," he said.

For more detailed insights about the points above, you can find the entire Investment Insights at BNY Mellon Wealth Management's website:

BNY Mellon Wealth Management is among the nation's leading wealth managers, with more than two centuries of experience in providing investment management, wealth and estate planning, and private banking services to financially successful individuals and families, their family offices and business enterprises, charitable gift programs, and endowments and foundations. It is among the top 10 U.S. wealth managers with more than $171 billion in private client assets and an extensive network of offices in the U.S. and internationally.

BNY Mellon Wealth Management services are offered by subsidiaries of The Bank of New York Mellon Corporation, principally, BNY Mellon, National Association.

BNY Mellon is a global financial services company focused on helping clients manage and service their financial assets, operating in 36 countries and serving more than 100 markets. BNY Mellon is a leading provider of financial services for institutions, corporations and high-net-worth individuals, offering superior investment management and investment services through a worldwide client-focused team. It has $27.1 trillion in assets under custody and administration and $1.3 trillion in assets under management, services $11.5 trillion in outstanding debt and processes global payments averaging $1.4 trillion per day. BNY Mellon is the corporate brand of The Bank of New York Mellon Corporation (NYSE: BK). Additional information is available on or follow us on Twitter@BNYMellon.

The statements and opinions expressed herein are as of the date hereof (unless otherwise indicated) and are subject to change as economic and market conditions dictate.  This document is not intended to be, nor should it be construed or used as investment, tax or legal advice.  Information or data about past performance is no assurance of future results. Investors should carefully consider their investment objectives and individual circumstances before making investment decisions.