Charting our Focus

Market Divergences Globally Offer Select Opportunities in Stocks & Bonds  

International stocks may offer opportunistic potential returns at lower prices 

We believe well-chosen, lower-cost stocks have the potential to provide stronger returns relative to higher-cost stocks.

The US market is currently very expensive measured by price/earnings (P/E) ratios, the most commonly used measure of expensiveness of stocks. As expectations for interest rate cuts by central banks across the world have consolidated, market volatility and divergences in equity performance have increased. As typically occurs late in the investment cycle, equity performance has shifted towards US stocks, particularly those in less cyclical sectors. However, given current valuations in the US market, we believe investors should instead consider opportunities outside the US.

Yields across fixed income sectors — attractive levels that are near ten-year highs

Source: Bloomberg as of 7/31/24.  Please see Terms and Indices below for more information.  Data based on past performance, which is no guarantee of future results.

A favorable backdrop exists for bonds: inflation is declining, the US Federal Reserve could make multiple rate cuts in 2024,  US economic fundamentals are solid, and demand is high for longer-duration assets. As this chart illustrates, yields across sectors remain attractive and in many cases are near ten-year highs, especially for higher-quality assets.

We believe these trends could offer fixed income investors the potential for robust total returns for the remainder of 2024.  

Terms and Indices

Cyclical stocks: Stocks whose performance moves in sync with trends in the economy, often because they make or sell items and services that are in demand when the economy is doing well. MSCI EAFE (Europe, Australasia, and Far East) Index: A commonly used measure of international stocks. S&P 500 Index: A stock market index that tracks 500 publicly traded domestic companies and serves as the foundation for a wide range of investment products. (Broad Market) ICE BofA US Broad Market Index: tracks the performance of US dollar denominated investment grade debt publicly issued in the US domestic market, including US Treasury, quasi-government, corporate, securitized and collateralized. (Treasury & Agency) ICE BofA US Treasury & Agency Index: tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. (US Agency MBS) ICE BofA US Mortgage Backed Securities Index: tracks the performance of US dollar denominated fixed rate residential mortgage pass-through securities publicly issued by US agencies Fannie Mae, Freddie Mac and Ginnie Mae in the US domestic market. (US Corporate) ICE BofA US Corporate Index: ICE BofA US Corporate Index tracks the performance of US dollar denominated investment grade corporate debt publicly issued in the US domestic market. (US High Yield) ICE BofA US High Yield Index: ICE BofA US High Yield Index tracks the performance of US dollar denominated below investment grade corporate debt publicly issued in the US domestic market. (AAA US ABS) ICE BofA AAA US Asset Backed Securities Index: a subset of ICE BofA US Fixed Rate Asset Backed Securities Index including all securities rated AAA. (AAA – BBB US ABS) ICE BofA AA-BBB US Fixed Rate Asset Backed Index: a subset of ICE BofA US Fixed Rate Asset Backed Securities Index including all securities rated AA1 through BBB3, inclusive.  

Price-to-earnings ratio (P/E): The ratio of a stock’s price over its per-share earnings.
Volatility: A statistical measure of the dispersion of returns for a given security or market index.

Indices are unmanaged and their returns assume reinvestment of dividends and do not reflect any fees or expenses. It is not possible to invest directly in an index.

Unless otherwise stated, all information contained in this document is from Amundi Asset Management US (Amundi US) and is as of 7/31/2024.

A Word About Risk: Pioneer Multi-Asset Income Fund

The market prices of securities may go up or down, sometimes rapidly or unpredictably, due to general market conditions, such as real or perceived adverse economic, political, or regulatory conditions, recessions, inflation, changes in interest or currency rates, lack of liquidity in the bond markets, the spread of infectious illness or other public health issues or adverse investor sentiment. All investments are subject to risk, including the possible loss of principal. Pioneer Multi-Asset Income (“MAI”) Fund has the ability to invest in a wide variety of securities and asset classes. Equity-linked notes (ELNs) may not perform as expected and could cause the fund to realize significant losses including its entire principal investment. Other risks include the risk of counterparty default, liquidity risk and imperfect correlation between ELNs and the underlying securities. High yield bonds possess greater price volatility, illiquidity, and possibility of default. Investments in fixed income securities involve interest rate, credit, inflation, and reinvestment risks. As interest rates rise, the value of fixed income securities falls. Prepayment risk is the chance that an issuer may exercise its right to prepay its security, if falling interest rates prompt the issuer to do so. Forced to reinvest the unanticipated proceeds at lower interest rates, the Fund would experience a decline in income and lose the opportunity for additional price appreciation. The Fund may invest in mortgage-backed securities, which during times of fluctuating interest rates may increase or decrease more than other fixed-income securities. Mortgage-backed securities are also subject to pre-payments. The Fund may invest in subordinated securities which may be disproportionately adversely affected by a default or even a perceived decline in creditworthiness of the issuer. International investments are subject to special risks including currency fluctuations, social, economic and political uncertainties, which could increase volatility. These risks are magnified in emerging markets. The Fund may invest in inflation-linked securities. As inflationary expectations increase, inflation-linked securities may become more attractive, because they protect future interest payments against inflation. Conversely, as inflationary concerns decrease, inflation-linked securities will become less attractive and less valuable. The Fund may invest in insurance-linked securities (ILS). The Fund could lose a portion or all of the principal it has invested in an ILS, and the right to additional interest and/or dividend payments with respect to the security, upon the occurrence of a trigger event that leads to physical or economic loss. ILS may expose the Fund to issuer (credit) default, liquidity, and other risks. The Fund may invest in floating rate loans. The value of collateral, if any, securing a floating rate loan can decline or may be insufficient to meet the issuer’s obligations or may be difficult to liquidate. The Fund may invest in underlying funds, including ETFs. In addition to the Fund’s operating expenses, investors will indirectly bear the operating expenses of investments in any underlying funds. Investments in equity securities are subject to price fluctuation. Small-and mid-cap stocks involve greater risks and volatility than large-cap stocks. The Fund may invest in Master Limited Partnerships, which are subject to increased risks of liquidity, price valuation, control, voting rights and taxation.  The Fund may invest in zero coupon bonds and payment in kind securities, which may be more speculative and fluctuate more in value than other fixed income securities. The accrual of income from these securities are payable as taxable annual dividends to shareholders. The Fund may use derivatives, such as options and futures, which can be illiquid, may disproportionately increase losses, and have a potentially large impact on performance. The Fund may invest in credit default swaps, a type of derivative, which may in some cases be illiquid, and increases credit risk since the Fund has exposure to both the issuer of the referenced obligation and the counterparty to the credit default swap. The Fund and some of the underlying funds employ leverage, which increases the volatility of investment returns and subjects the Fund to magnified losses if an underlying Fund’s investments decline in value. There is no assurance that these and other strategies used by the Fund or underlying funds will be successful. Please see the prospectus for a more complete discussion of the Fund’s risks.

Individuals are encouraged to seek advice from their financial, legal, tax and other appropriate professionals before making any investment or financial decisions or purchasing any financial, securities or investment-related product or service, including any product or service described in these materials. Amundi US does not provide investment advice or investment recommendations.

Before investing, consider the product's investment objectives, risks, charges and expenses. Contact your financial professional or Amundi US for a prospectus or summary prospectus containing this information. Read it carefully. To obtain a free prospectus or summary prospectus and for information on any Pioneer fund, please download it from our  literature section.

Securities offered through Amundi Distributor US, Inc.
60 State Street, Boston, MA 02109
Underwriter of Pioneer mutual funds, Member   SIPC.   

Not FDIC insured | May lose value | No bank guarantee Amundi Asset Management US, Inc.  Form CRS         Amundi Distributor US, Inc.  Form CRS 

EXP-2025-08-12-ADID-3781867-1Y-T