Reactions from Eaton Vance investment professionals

Reactions from Eaton Vance investment professionals

Edward Perkin

Chief Equity Investment Officer
"The stock market remains near its all-time high, yet U.S. investors appear hesitant. Signs of economic softness and political risk are clouds of uncertainty hanging over a cautious market, with investors remembering a valuable lesson learned from Brexit – polls can be misleading. The lack of enthusiasm from investors indicates frustration and many may be waiting for a pullback before getting more fully invested."

Kathleen Gaffney

Co-Director of Diversified Fixed Income
"Recent volatility in global bond markets could be here to stay amid continued uncertainty about central bank policy. Investing in bonds with low and negative yields requires confidence and certainty, both of which have been suddenly eroded. Holding a little bit of everything, including cash, makes a lot of sense right now. Taking a long-term view and building a diversified portfolio is a great approach in an uncertain world."
Funds: Bond Fund, Bond Fund II

Craig Brandon

Co-Director of Municipal Investments
"Attractive valuations in a challenging yield environment have renewed investor interest in municipal bonds. Despite ongoing concerns about money market reform, the U.S. presidential election and the path to bankruptcy in Puerto Rico, we expect tax-sensitive investors to continue to look to munis as a source of yield and portfolio diversification."

Eaton Vance Advisor Top-of-Mind Index Methodology
ATOMIX is calculated based on the findings of a survey of 1,002 financial advisors from a diverse group of companies. Eaton Vance contracted with a third party to conduct the online survey from September 2, 2016 - September 28, 2016. ATOMIX uses a methodology similar to that of the U.S. Consumer Confidence Index* (which has no affiliation with Eaton Vance) in that it calculates a weighted average of current perceptions (40% of the Index) and what advisors think about the trends (60% of the Index). The Index set a baseline average of 100 for April 2014. Each component measured is tracked quarterly to illustrate changes in advisor perceptions and changes in trends over time. Future surveys will sample different financial advisors and may produce different results.

*The monthly Consumer Confidence Survey®, based on a probability-design random sample, is conducted for The Conference Board by Nielsen, a leading global provider of information and analytics around what consumers buy and watch. The Consumer Confidence Index was started in 1967and is benchmarked to 1985=100. The Index is calculated each month based on a household survey of consumers’ opinions on current conditions and future expectations of the economy. Opinions on current conditions make up 40% of the index, with expectations of future conditions comprising the remaining 60%.