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Mind the $2 Trillion Gap
by Kevin Flanagan, Bradley Krom of WisdomTree, Inc., 10/29/26

With the recent movements in both the stock and bond markets, there was some noteworthy news that got kind of lost. Indeed, the U.S. government posted a $1.99 trillion budget deficit for fiscal year (FY) 2026. While technically it is not a record amount of red-ink, it represented the largest non-COVID-related shortfall ever recorded in modern history.

Equities: On Hikes and Highs
by Kevin Flanagan, Bradley Krom of WisdomTree, Inc., 10/16/26

Central banks are tightening, and stocks are still within reach of their highs. The Fed hiked on September 16 for the first time since 2023, and the 10-year Treasury yield touched 5.34% this month, its highest level since 2002. Even so, the S&P 500 sits within roughly 2.5% of its record, and Japanese equities recently set fresh all-time highs.

U.S. Core Fixed Income Performance at a Crossroad
by Bradley Krom of WisdomTree, Inc., 6/1/15
In recent weeks, longer-term borrowing costs around the world have started to rise rapidly. As a result, long only investors are now sitting on losses in their bond portfolios for the first time in 2015. This can be psychologically significant.

Top 10 Considerations for June to September Liftoff
by Bradley Krom of WisdomTree, Inc., 4/13/15
One of the top stories of 2015 so far has been the anticipated liftoff from the zero bound interest rate target of the U.S. Federal Reserve (Fed). As market forecasters continue to debate June vs. September, we share some observations from previous hiking cycles to guide your views.

How to Profit When Rates Rise: Negative Duration Bond Strategies
by Bradley Krom of WisdomTree, Inc., 4/7/15
As the debate rages surrounding the timing of the first Federal Reserve (Fed) rate hike, we continue to discuss the potential tradeoffs surrounding this inevitable shift in policy. While some investors may be content to ride out the waning bull market in bonds, others may seek to position more tactically.

Federal Funds Rate Expectations: It’s October 2014 All Over Again
by Bradley Krom of WisdomTree, Inc., 3/30/15
After a series of stops and starts, comments from a variety of Fed speakers and a slight pickup in some U.S. economic data, the Fed took the opportunity to deliver a dovish surprise at its March 18 policy meeting.

Japanese 10-Year Rates Double in 2015, Rise Above German Bunds
by Bradley Krom of WisdomTree, Inc., 3/27/15
Since reaching historic lows in mid-January, Japanese government bond (JGB)yields have doubled over the last several weeks. In the process, they have eclipsed German 10-year bund yields for the first time in over 20 years.

What’s Really Driving the Value of the Euro and Yen?
by Bradley Krom of WisdomTree, Inc., 3/2/15
With a majority of developed markets rallying strongly over the last several years, we think the single biggest determinant for investors actually being able to capture those returns has hinged on their ability to manage currency risk.

Making Sense of Dollar Strength
by Bradley Krom of WisdomTree, Inc., 12/2/14
Over the last several months, investors and economists alike have started to take note of the broad-based appreciation of the U.S. dollar. However, we believe the magnitude of this years move tells only a portion of the story. In our view, this summers rally does not represent a correction or near-term adjustment, but rather the continuation of a broader trend that started in the middle of 2011.

Examining the Divergence between Equities and Credit
by Bradley Krom of WisdomTree, Inc., 11/19/14
Over the last year, U.S. equities rallied, and credit spread generally tightened. However, in recent months, this winning formula has started to diverge. Concerns about global growth, potential changes in monetary policy and uncertainty from geopolitical risk weighed on investor sentiment.

Rising Rate Strategies
by Rick Harper, Bradley Krom of WisdomTree, Inc., 10/28/14
While the ultimate evolution of the path of U.S. interest rates remains uncertain, we believe our new strategies for risk management give investors a powerful tool kit for refining their fixed income exposure.

Whats Next for the Indian Rupee?
by Bradley Krom of WisdomTree, Inc., 10/22/14
Even before the election results were fully counted in May, Indian currency and equity markets were reacting. After touching all-time lows last year, the rupee surged on the optimism that the reform-minded Modi would push through an agenda to improve Indian economic competitiveness.

Rising Rates Implementation Plan: Core Plus & Risk Management
by Rick Harper, Bradley Krom of WisdomTree, Inc., 10/21/14
While our view on rising rates has yet to meaningfully materialize this year, our underlying thesis has not changed. In our view, it may be time for investors to think about how a bond portfolio may perform as a result of changes in Federal Reserve (Fed) policy.

How Vulnerable Is Short-Duration Fixed Income to Fed Tightening?
by Rick Harper, Bradley Krom of WisdomTree, Inc., 9/30/14
In recent research released by the Federal Reserve Bank of San Francisco and echoed in statements by several Fed regional bank presidents, Fed officials have voiced concerns that the market is underestimating the probability and timing of a change in monetary policy.

Playing Defense in Emerging Market Fixed Income
by Bradley Krom of WisdomTree, Inc., 9/25/14
When looking around the global fixed income landscape, investors searching for income potential have essentially two choices: non-investment grade debt or emerging markets (EM). While high yield flows continues to dominate the headlines, emerging markets have generally flown under the radar in recent months. In this discussion, we focus on how investors may be able to best position against a change in Federal Reserve (Fed) policy while maintaining income potential from investments in emerging markets.

The U.S. Dollar is Rising, Interest Rates Could Be Next
by Rick Harper, Bradley Krom of WisdomTree, Inc., 9/23/14
Since bottoming July 1, the U.S. dollar has mounted an impressive rally against virtually every major foreign currency. While many analysts have been predicting a secular appreciation in the U.S. dollar on account of stronger economic fundamentals, the current rally has caused even casual market participants to take notice.

Fed Policy: From Tapering to Tightening
by Rick Harper, Bradley Krom of WisdomTree, Inc., 9/17/14
Over the past nine months, the Federal Reserve (Fed) has gradually reduced the pace of its asset purchases in conjunction with an improvement in the strength of the U.S. economy. With tapering expected to end October 29, we believe that investors should now look beyond 2014 and start to focus on when, not if, the Federal Reserve will raise the Federal Funds Rate.

Federal Reserve Tapering Part II: Emerging Market Local Debt Performance
by Bradley Krom of WisdomTree, Inc., 8/12/14
In part two of our discussion, we focus on the impact of recent changes in Federal Reserve (Fed) policy on locally-denominated fixed income across emerging markets (EM).

Federal Reserve Tapering Part I: Emerging Market Currency Performance
by Bradley Krom of WisdomTree, Inc., 8/7/14
While many investors tend to focus on changes of currency spot rates, a primary reason we have long advocated that investors allocate to EM currencies is the income potential driven by the higher interest rates in many emerging market countries. In todays yield-starved environment, EM currencies remain one of the most significant means of generating income in a portfolio while limiting interest rate risk.

Cause and Effect: Bank of Japan Becomes Governments Largest
by Bradley Krom of WisdomTree, Inc., 7/22/14
Although central banks often use their holdings of government debt to affect monetary policy, the meteoric rise in the expansion of the BOJs balance sheet is unprecedented. With the BOJ continuing to signal its willingness to aggressively stimulate the economy, we highlight here what we believe are the most significant implications of these policies.

Rising Rates and the U.S. Dollar
by Bradley Krom of WisdomTree, Inc., 7/14/14
While interest rates in the U.S. have fallen so far year-to-date, we continue to believe that rates may be poised to rise in the second half of 2014. Over the last several weeks, we have seen increased interest from clients about how best to prepare their portfolios for an eventual rise in U.S. interest rates.

U.S. & European Flows: Potential Opportunity in European Debt?
by Bradley Krom of WisdomTree, Inc., 7/9/14
In discussions with our clients, we often notice their interest in hearing where WisdomTree or the industry is seeing inflows in order to gain new ideas for investment. As the market for global exchange-traded products continues to evolve, we believe that investors will increasingly look to global ETP flows for investment ideas.
22 results found.