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Results 151–200
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U.S. Dollar Strength Continues to Impact U.S. Multinationals
by Jeremy Schwartz of WisdomTree, Inc.,
S&P 500 Index has traded inversely to the currency moves over recent years, and it has become increasingly negatively negatively correlated. One reason, we believe, is that a growing share of revenue and profits for U.S. corporations comes from overseas—and that share seems likely to increase with the globalization of the economy.
What Does the Oil Turmoil Mean for the Energy Sector in the Long Term
by Tripp Zimmerman of WisdomTree, Inc.,
One of the largest investment stories for the second half of 2014 was the precipitous decline of oil prices and its impact on the energy sector. As a result of the sharp price declines, the dividend yields on various energy stocks have increased.
Ramping Up Reform in Brazil
by Rick Harper of WisdomTree, Inc.,
On November 27, President Rousseff shook up her cabinet through the appointment of Joaquim Levy as finance minister. In our opinion, this marks a positive first step by the administration in its attempt to re-establish its credibility with the market.
Making Sense of Dollar Strength
by Bradley Krom of WisdomTree, Inc.,
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.
Japan Dips into Recession as Japan, Inc. Profits Set New Highs
by Jeremy Schwartz of WisdomTree, Inc.,
When investors buy Japanese equities, they dont really buy a slice of that economy; they buy shares in corporations that operate both in Japan and around the world. Japan, Inc. (i.e., Japanese corporations) is showing a profit picture that differs dramatically from the countrys economic growth rate.
Flows Potential: Fund Managers Remain Under-Weight Japan
by Jeremy Schwartz of WisdomTree, Inc.,
The recent bout of aggressive monetary policy easing by the Bank of Japan (BOJ), combined with the direct purchases of equities by the Japanese Government Pension Investment Fund (GPIF), has brought on a new period of positive sentiment toward Japanese equities.
Examining the Divergence between Equities and Credit
by Bradley Krom of WisdomTree, Inc.,
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.
The ETF Trader Interview Series: Ken Dolan, Jefferies & Company
by David Abner of WisdomTree, Inc.,
In this edition, Dave Abner, Head of Capital Markets at WisdomTree, speaks with Ken Dolan, Senior Vice President on the ETF trading desk at Jefferies & Company, Inc. Ken joined the desk in 2011 after spending nine years at LaBranche & Co. as a Managing Director and Head of ETF Trading. In addition to his ETF trading experience, Ken has nine years of trading experience across equities, fixed income and emerging markets at Deutsche Bank, Credit Suisse and Lehman Brothers. He received a BS from Providence College and is a Chartered Financial Analyst.
The ETF Trader Interview Series: Aaron Kehoe, Cantor Fitzgerald
by Anita Rausch of WisdomTree, Inc.,
In this edition, Anita Rausch, Director of Capital Markets, speaks with Aaron Kehoe, Managing Director and Head of Fixed Income ETF trading at Cantor Fitzgerald. Aaron joined Cantor in September 2013 and focuses primarily on managing and trading the firms book of fixed income ETFs. In addition, Aaron was instrumental in the product launches of many new fixed income ETFs and all senior loan ETFs.
What a Rising Dollar Means for Your Stock Portfolio
by Jeremy Schwartz of WisdomTree, Inc.,
Typically, if a companys home currency is weakening compared to the currency where the companys sales are generated, this will have a positive effect on sales and profitability, and if the home currency is strengthening, it could negatively impact sales and profitability.
Double Dose of Stimulus Sending Japan Stocks Up, Yen Down
by Jeremy Schwartz of WisdomTree, Inc.,
On October 31, the Bank of Japan (BOJ) unleashed a surprise round of further stimulus to its monetary policies. This additional monetary easing occurred the same week that the U.S. Federal Reserve (Fed) completed its monetary policy program, showing a transition in global central bank accommodation leadership.
Whats Next for the Indian Rupee?
by Bradley Krom of WisdomTree, Inc.,
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
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.
Risk Aversion and Dollar Strength
by Rick Harper of WisdomTree, Inc.,
Since the dollar is the primary reserve currency of the world, investors typically seek exposure to the dollar via short-term assets when market sentiment begins to shift. As we explain, the U.S. dollar can serve as an effective hedge to market uncertainty when volatility unexpectedly spikes.
Rising Rate Strategy Performance in a Falling Rate Environment
by Rick Harper of WisdomTree, Inc.,
In our view, exchange-traded funds (ETFs) can provide powerful tools for fixed income investors both big and small. Even some of the most sophisticated investment managers have used ETFs to gain broad-based exposure to certain subsets of the fixed income market.
Japan Strategist Roundtable: Jesper KollWhat Is Different This Time?
by Jeremy Schwartz of WisdomTree, Inc.,
When I spoke with Jesper Koll from J.P. Morgan Securities, one particular theme appeared in our conversation: Prime minister Shinzo Abe is an important catalystbut not necessarily the primary factorfor what is different this time in Japan.
What’s Next from the Bank of Japan
by Jeremy Schwartz of WisdomTree, Inc.,
I had the opportunity to meet with Takeshi Yamada of the Market Intelligence Group at the Bank of Japan (BOJ), and I attended a presentation at the Mizuho conference by Eiji Maeda, the director-general of the Research and Statistics Department.
How Vulnerable Is Short-Duration Fixed Income to Fed Tightening?
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.,
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.
India: A Bright Spot in Emerging Markets
In 2013, emerging markets were the laggards of the global equity markets. 2014 has seen some bright spots, but various uncertainties, most notably with respect to Russia, have tended to constrain equity rallies. However, there is one market that seems to have completely shrugged off 2013 concerns and emerge as an extremely strong performer thus far this year.
The U.S. Dollar is Rising, Interest Rates Could Be Next
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.
Yellen to the Markets: Come to Me
by Bradley Harper of WisdomTree, Inc.,
By most accounts, the Federal Open Market Committee (FOMC) statement released September 17 failed to break much new ground in terms of changes to policy or language. The Federal Reserve Board (Fed) met expectations with another measured step in its tapering process, by trimming $5 billion of Treasury and $5 billion of mortgage-backed securities purchases from its asset purchase program.
Fed Policy: From Tapering to Tightening
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.
Diversifying With the Yen? Not if Japanese Equities Are Involved
by Jeremy Schwartz of WisdomTree, Inc.,
The discussion of currency-hedged strategies has shaken some of the core beliefs of investors. Traditional investment vehicles that package equity risk plus a secondary currency risk on top of the equity risk have been referred to as the traditional plain vanilla exposure because they were the first to the market, and it is what investors have been using for so long.
Why Take Currency Risk if Diversification Benefit is Declining?
by Jeremy Schwartz of WisdomTree, Inc.,
We have been exploring the case for layering in foreign currency (FX) on top of foreign equity returns. One of the most common arguments I have heard for taking on FX risk in international equity portfolios in an unhedged fashion is that FX can be a portfolio diversifier.
Is it Time to Take the Euro Out of Europe?
by Jeremy Schwartz of WisdomTree, Inc.,
On September 4, the European Central Bank (ECB) took further accommodation to support the economic growth environment in Europe. As a result, the euro collapsed about 1% immediately after the news, while European stocks rose on prospects for more monetary policy easing. This reaction mirrors what we saw in Japan in 2013, and it strengthens the case for taking the euro out of Europe.
A Peak at Yellen’s Labor Market Dashboard Highlights Fed Concerns
by Rick Harper of WisdomTree, Inc.,
In this piece, we attempt to re-create the labor market dashboard and assess the progress the economy has made post-financial crisis. While many indicators suggest a full recovery (or at least substantial progress), a few indicators hint at little progress from crisis lows.
Time to Consider Korea Hedged Equities
by Jeremy Schwartz of WisdomTree, Inc.,
The Korean won has been on a tear as one of best-performing emerging-market currencies in 2014. And this has the Korean government and central bank officials worried that the rising Korean won is eroding the competitiveness of Koreas exports.
Federal Reserve Tapering Part I: Emerging Market Currency Performance
by Bradley Krom of WisdomTree, Inc.,
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.
What Asset Class Rallied Last Week amid the Sell-Off?
Last Thursdays sell-off in U.S. stocks (the Dow was down 317 points, the S&P 500 Index was down nearly 2%) marked the biggest stock market decline in nearly four months. The S&P 500 Index closed at 1,930 after it broke its 50-day moving average for the first time since April.
Opportunities in Developed International Equities
Each year, WisdomTree screens the universe of dividend payers in developed international markets so that we can refocus the weights of constituents back to relative value and away from simply holding increasing amounts of stocks that have performed well. The rebalance was recently completed, suggesting that this is an opportune time to review the positioning of our broad developed international Indexes.
Are You Concerned about Small-Cap Valuations?
by Tripp Zimmerman of WisdomTree, Inc.,
Stocks often move more than is justified by changes in their underlying fundamentals, and as a result, investors run the risk of paying too much for stocks that have become more expensive relative to their fundamentals.
Indian Budget: Converting Promises into Policies
by Jeremy Schwartz of WisdomTree, Inc.,
India has been a hot market in 2014, as investors anticipated the election of business-friendly prime minister Narendra Modi. If Election Day was the most important day of the year, perhaps the second most important day was the release of the annual budget on July 10.
Long Commodities, Short Contango via Commodity Currencies
by Rick Harper of WisdomTree, Inc.,
On the back of a resurgence in Chinese economic data and rising geopolitical risk in Eastern Europe and the Middle East, increases in global commodity prices have reinvigorated investor interest in allocating to commodity-based investment strategies.
Cause and Effect: Bank of Japan Becomes Governments Largest
by Bradley Krom of WisdomTree, Inc.,
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.
Smart Beta in Action: Taking Chips Off the Small-Cap European Table
by Jeremy Schwartz of WisdomTree, Inc.,
European equity markets performed strongly throughout much of 2013 and into the first five months of 2014. While it is difficult to time market tops and bottoms for individual stocks on a consistent basis, we believe there are benefits to undertaking a disciplined practice to rebalance weight based on changes in relative valuation.
How the Europe Small-Cap Portfolio Changed at the Rebalance
by Jeremy Schwartz of WisdomTree, Inc.,
A key differentiator of the WisdomTree Index methodology is our annual rebalance to focus on changes in relative value. In this blog, we will zoom in on how this approach led to changes in exposure in the WisdomTree Europe SmallCap Dividend Index (WT Europe Small).
Results 151–200
of 206 found.
