Although the major indices are well off of the lows they reached in March, there remains a high level of uncertainty about what the future holds for the market and the economy.
April was a strong month for the market with the S&P500 returning more than 12%. This came on the heels of an extremely volatile month that was March 2020 where the S&P500 corrected 12.50% when all was said and done. However, there was a ton of volatility to get there.
Leverage is probably one of the most controversial subjects in investing. Used properly (and given a bit of good fortune), the benefits of leverage can be amazing. Leverage is the reason why home ownership is often viewed as one of the best ways of building wealth.
We are cautious today. This is a unique period of Knightian uncertainty. In a world of unbounded unknowns, protecting capital is paramount. However, the environment is in a state of flux and new information is developing at a rapid pace.
May officially marks the beginning of the “seasonally weak” half of the year, which lasts through October. We are all familiar with the saying "sell in May and go away," which conjectures that we would do just as well to sell all of our holdings as we would be invested in the market during the months of May through October.
Low Price to Something investing, or “value” investing as it has come to be known since Fama/French introduced the “value” factor has been a disaster for investors over the past 10 plus years.
Coronavirus-related stay-at-home orders and falling consumer demand have been extremely challenging for small businesses. If you’re a small-business owner, make sure you’re taking advantage of the help that’s available.
As the COVID-19 pandemic evolved during the first quarter, the municipal bond market experienced one of its most volatile periods in years. Here, the Franklin Municipal Bond Department shares how they plan to navigate the market, which they think is likely to show signs of distress and elevated volatility for some time.
The GMO Asset Allocation team has released its latest 7-Year Asset Class Real Return Forecasts through the first quarter of 2020.
Following the market meltdown, investors seeking to bolster defensive positions could end up finding them in some unusual places.
The health of our planet depends on responsible investing. On Earth Day and every day, it has our full support.
Unlike most macro investors who are event-driven, RBA has always strictly followed fundamentals. Our models and indicators have been time-tested in multiple cycles over the past 30 years, and a deliberate and disciplined approach has so far served us well in the current unprecedented environment.
A brief monthly update on what's happening in the municipal bond market.
Major economies are contracting, but extraordinary policy responses could limit severe recessions to this year.
Closed-end funds are currently trading at a discount as equity markets have dropped. Here’s where to spot opportunities.
The municipal fixed income market, like most other asset classes, is experiencing unprecedented volatility. Large mutual fund outflows are adding to the volatility as investors seek to add to cash reserves by selling what may be deemed easiest to sell.
On Thursday, March 12, Rick Raczkowski, co-lead portfolio manager of Core Plus Fixed Income participated in a conference call with clients to discuss recent events and market activity. He discussed that while there is a lot of fear and uncertainty in the market right now he and co-lead portfolio manager Peter Palfrey, are maintaining their discipline of managing through the cycle as they have for the past 20 years.
On Friday, March 13, Loomis Sayles’ Global Fixed Income team held a conference call to discuss the current market environment, policy responses and potential opportunities. Here, portfolio managers Lynda Schweitzer and Scott Service summarized a few key points.
Municipal closed-end funds (“CEFs”) currently offer high levels of tax advantaged income and can often be purchased at a discount to their current net asset value.
On Thursday, March 12, Loomis Sayles’ Full Discretion team held a conference call to discuss current conditions, upcoming challenges and potential portfolio positioning and solutions. Here, portfolio managers Matt Eagan and Elaine Stokes summarized a few key points.
The Loomis Sayles Alpha Strategies team shares some insights as markets grapple with three issues: the impact of COVID-19, an oil fight and a crisis of confidence in Western governments.
Long-term perspective is key as coronavirus and falling oil prices roil markets. Members of the Matthews Asia investment team share their insights and outlook amid volatile markets.
Our Emerging Markets Equity team examines the impact of the spread of coronavirus across emerging market economies during the month of February.
Responsible investing has gathered enough momentum in recent years to reach the mainstream. What is less clear is how far along global institutional investors are in the process of integrating environmental, social and governance (ESG) principles into their investment decisions.
The US equity markets have fallen sharply the past week on concerns of coronavirus diseases 2019. This novel coronavirus affects the respiratory system, was first identified in Wuhan, China more than two months ago, and has now spread to all major economies globally.
In January, we highlighted signs of green shoots in economic data—learn how recent developments affect our outlook.
What does a “correction” mean, what’s likely to happen next and what can investors do now?
Investors who want bigger returns from their high-yield strategies should consider a global approach.
Our forecasts for stocks generally improved in January as stocks declined, but they fell for bonds as rates rallied. Coronavirus and growth fears weighed on markets, pushing Value and non-U.S. stocks down most.
How contained is the coronavirus outbreak? That’s the question that rattled markets on Monday, sending the Dow industrials down more than 1,000 points, or 3.6%. The S&P 500 index declined by 3.4%.
As markets continue to assess the impact of coronavirus (COVID-19), the Templeton Global Macro team shares an update on the economic and market implications, which they say could be more detrimental—and last longer—than many observers previously thought.
The Lazard Multi-Asset team details their views over the next six to 12 months. While the United States-China Phase 1 trade agreement and the United Kingdom’s exit from the European Union have reduced near-term uncertainty and improved sentiment, the coronavirus outbreak in China could have a noticeable negative effect on global economic activity.
The coronavirus outbreak and the Democratic primary have affected sector leadership. However, we’re keeping our sector views unchanged—for now.
Our emerging markets equity team looks at news and events shaping emerging market performances in January, from coronavirus fears to trade to Middle East tensions.
A review of last month’s market-moving events across countries and asset classes.
One way for high-yield investors to gauge how their bonds may fare down the road has been with this simple, accessible and historically accurate tool.
Learn more about the remarkable lives and contributions of three leading African American economists.
Overcomplicating things is seldom on the path to investment success. The stunning ascension of Tesla has confounded, in a manner no less than stupefying, the investment thesis of many.
The third and final set of year-end updates to the Crestmont Research.
It is probably hard to remember after a week or so of coronavirus fears, but during Q4 2019, “risk” assets once again outperformed “haven” assets. This was after two quarters of “haven” asset outperformance.
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One of the most important discoveries in finance over the past few decades is that stocks of firms that share certain fundamental characteristics called “factors” exhibit different return and risk characteristics than the overall market. Critical to investors is the fact that, over long periods of time, certain of these factors have earned excess returns compared to the overall market.
Ten charts illustrate the macroeconomic trends most likely to shape Fed policy and investment performance in 2020 and beyond.
Emerging markets are expected to grow more and grow faster than developed markets in 2020, and fundamentals appear attractive for both equities and debt. Trade tensions and global growth prospects are, as ever, the issues to watch in the new year.
The US municipal market registered strong performance in 2019, driven by record demand from individuals and constrained supply of tax-exempt issuance. Both factors grew out of changes legislated in the 2017 Tax Act. As we enter 2020, valuations appear tight versus Treasurys and fair versus corporates and risk assets generally.
The GMO Asset Allocation team has released its latest 7-Year Asset Class Real Return Forecasts
The recent runup in valuations has reduced the margin for error in today’s markets.
Last New Year’s Eve, most would not have forecasted the extent of the gains experienced by the U.S. stock markets this year. On the heels of the worst December since 1931, the Federal Reserve’s (the Fed) 180-degree turn, from restrictive to accommodative policy, fueled the S&P 500’s roughly 30 percent surge and pushed the U.S. economic expansion into record territory.
Looking ahead, we believe the global economic environment will remain supportive for securitized sectors despite potentially slowing economic growth. In the US, we believe strong fundamentals, including robust wage growth and healthy household balance sheets, will provide solid support for real estate and consumer-related credit.
2019 was a very unusual year. Domestic growth whipsawed from strong (over 3%) to concerning (just over 1%). This volatility was compounded by both domestic and global headline factors: a very public trade dispute and very weak global growth.