2 Top Takeaways on the Markets from the 2022 Morningstar Investment Conference

Here's what top fund managers had to say about the outlook and where they're seeing opportunities. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_smartinvestor&utm_content=36308&elqTrackId=3972e6ff2815439bb4838b0ab6ff55c4&elq=af2dbd17ee5740d0bd863e8db8b36198&elqaid=36308&elqat=1&elqCampaignId=16951) [Smart Investor] Smart Investor with [Tom Lauricella, chief markets editor]( Twitter: [@LauricellaTom]( [Tom Lauricella] The Morningstar Investment Conference is always a great opportunity to step back from the noise of the markets, put trends into perspective and come away with new ideas. This year, as stocks flirted with their second bear market in just over two years, was no different. The two main takeaways? The first was that despite all blaring headlines you may see (which are designed to scare readers into clicking on those articles), nobody should be surprised by the downdraft in stocks and the rise in bond yields. Valuations had been high and there was lots of froth in the markets. The big declines in both markets are painful but necessary reversals. BlackRock’s Kate Moore summed it up well, by noting “a lot of the bubbles have been burst.” That was echoed by [Sarah Ketterer]( chief executive of Causeway Capital Management. She told Wednesday’s session that while stocks and bonds could still fall further, “risk is actually lower than it was a year ago.” The other big takeaway was that there’s a growing number of opportunities for long-term investors to take advantage of. We heard this from stock fund managers across the investment strategy spectrum. “When fears of recession manifest in stock prices, it can create some attractive risk-reward opportunities, “ said [David Giroux]( from T. Rowe Price. For more on what some of our panelists had to say about the outlook and how they’re positioning their portfolios, check out our conference highlights. Also, check out our Chart of the Week article, which takes a deep dive inside one of the factors being blamed for the stock market sell off: real yields. We look at what real yields are and why they may or may not matter. [2022 Morningstar Investment Conference]( [2022 Morningstar Investment Conference]( Learn more about key sessions from this year's annual investment conference. Morningstar.com [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] Insights from the Morningstar Investment Conference [Top-Rated Fund Manager on Where He's Investing Today]( [Top-Rated Fund Manager on Where He's Investing Today]( T. Rowe Price's David Giroux shares his thoughts about bond positioning, beaten-down Big Tech, and whether a recession is imminent. Bobby Blue [Why This Top Manager Thinks Markets Are Less Risky Now]( [Why This Top Manager Thinks Markets Are Less Risky Now]( Causeway Capital CEO Sarah Ketterer on where she's investing today, why international stocks have lagged U.S. stocks, and why value managers are screaming with joy. Katie Rushkewicz Reichart [Here’s How to Think About Retirement Income Today]( [Here’s How to Think About Retirement Income Today]( What PGIM’s David Blanchett thinks a volatile stock market, rising yields, and still-hot inflation mean for the financial plans of retirees and pre-retirees. Christine Benz [Financial Literacy Alone Won’t Close the Wealth Divide]( [Financial Literacy Alone Won’t Close the Wealth Divide]( Financial advisor Phuong Luong urges others in the industry to study financial history and avoid false markers of competence when hiring. Sonya Dreizler Chart of the Week [What Are Real Yields and Why Do They Matter to Stocks?]( [What Are Real Yields and Why Do They Matter to Stocks?]( Real yields have been pointed to as a culprit in 2022's stock market selloff. Tom Lauricella [Read More]( Share: [facebook]( [twitter]( [linkedin]( Popular This Week [An 8 Step Plan to Tackle a Bear Market]( A bear market is the perfect time to look under the hood of your portfolio and financial plan. Tom Lauricella [11 Newly Undervalued Wide-Moat Stocks]( High-quality stocks, including Amazon, BlackRock, and Comcast, are now trading at steep discounts. Lauren Solberg [Food and Ag Stocks Are Having Their Time in the Sun]( Mosaic and ADM are among those with solid gains in 2022, but valuations are rich. Lauren Solberg [11 Undervalued Stocks That Crushed Earnings]( Citigroup and Sabre are among those left undervalued despite strong first-quarter results. Jakir Hossain [4 Warren Buffett Stocks to Buy]( These undervalued stocks are among the holdings in Berkshire Hathaway today. Susan Dziubinski [What Should Accompany Stocks: Cash or Bonds?]( The benefits of taking the middle ground. John Rekenthaler Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2022 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602