Today, in a shock decision, the Bank of England (BoE) left its policy rate at 5.25% by the tightest possible majority vote of 5-4. All but one of 65 economists polled by Reuters had predicted that the BoE would raise the rate to 5.5%.
Wednesday’s Federal Reserve (Fed) decision to keep the federal funds rate unchanged wasn’t a surprise at all. Markets, as we argued last week, had predicted that the Fed was going to stay put and that is what it did.
The Northern Trust Economics team shares its outlook for major markets in the months ahead.
A balanced portfolio needs assets with strong return potential and those that may provide downside mitigation. We believe direct lending can deliver both—a potentially valuable feature, particularly in today’s uncertain market.
Energy and Gold Produces Face Increasing Pressures, Crimping Supply.
We started RBA in 2009 primarily because we thought the US stock market was entering one of the biggest bull markets of our careers. However, most investors did not agree with our bullishness. Now, risk aversion seems a thing of the past.
Six of the eight indexes on our world watch list posted gains through September 25, 2023. Tokyo's Nikkei 225 finished in the top spot with a YTD gain of 25.23%. The U.S.'s S&P 500 finished in second with a YTD gain of 13.42% while India's BSE SENSEX finished in third with a YTD gain of 7.72%.
The Chicago Fed's National Activity Index is based on 85 economic indicators drawn from four broad categories of data. Two of the four broad categories of indicators used to construct the index decreased from July. All four categories made negative contributions in August.
Investors think about companies as being either large or small. In between those extremes are midcaps. Based on historical performance and fundamentals, midcaps should command more attention.
The Big Myth is the remarkable, and largely untold, story of how America fell in love with market fundamentalism.
A string of CPI readings heading in the right direction. A labor market and consumer that are still intact. All of the sudden, the recession consensus has given way to a soft landing. Learn what may be in store for the equity market.
By applying artificial intelligence and Chat GPT to statements made by active fund managers, researchers have found that their underperformance can be partly explained by overconfidence that led to, among other things, excessive risk taking.
The Dallas Fed released its Texas Manufacturing Outlook Survey (TMOS) for September. The latest general business activity index came in at -18.1, down 0.9 from last month. This is the first monthly decline in the general business activity index in the past 4 months and marks the 17th consecutive month it has been in contraction territory.
The hit TV series “That 70s Show” aired from 1998 to 2006 and focused on six teenage friends living in Wisconsin in the late 70s.
A group of high-frequency traders, market makers and service providers calling themselves the Shortwave Modernization Coalition has asked the Federal Communications Commission for access to the shortwave band of the radio spectrum, seeking to shave crucial milliseconds off the transmission of data between major financial sectors.
Some seven weeks ago, hedge fund investor Bill Ackman laid out his rationale for shorting long-term US bonds, and I took exception.
Bond investors face the crucial decision of just how much risk to take in Treasuries with 10-year yields at the highest in more than a decade and the Federal Reserve signaling it’s almost done raising rates.
Consumer stocks, one of the brightest corners of the market this year, are about to lose their shine as risks build for the sector, according to Morgan Stanley’s Michael Wilson.
US small-cap and industrial stocks are dropping, typically signals of a recession, but in a year where equities have already beaten expectations some investors are dismissing the moves as little more than noise — for now.
Looking through the lens of ROL – return on life – are you focused on each client's quality of life or just the quantity of assets?
The Chicago Fed National Activity Index (CFNAI) fell to -0.16 in August from +0.07 in July. Two of the four broad categories of indicators used to construct the index decreased from July. All four categories made negative contributions in August. The index's three-month moving average, CFNAI-MA3, inched up to -0.14 in August from -0.15 in July.
Investment-grade credit is currently offering impressive yields, with relatively less risk than other fixed income sectors, according to Josh Lohmeier of Franklin Templeton Fixed Income. He makes a case for investing in the space today.
Environmental, social, and governance policies and investing have become targets of political derision. That doesn’t dampen the need for corporations and governments to pursue agendas tied to climate change and diversity, equity, and inclusion.
Financial advisors often face the challenge of transitioning a new client into their practice in a tax-efficient way.
I, however, like all Kens, have always had a firm grip on the remote for 100% of the time but I decided to let her have her way just once.
When it comes to sheer equities performance over the last 30 years, there’s no denying the United States compared to the rest of the world. However, that could be changing according to one hedge fund manager.
Many of the speakers and attendees were bullish on the physical metal, pointing to gold’s resilience in the face of a very strong U.S. dollar and multiyear-high yields.
Honeywell International Inc. is a global leader in diversified technology and manufacturing. As sectors like aerospace and construction undergo rapid changes, there’s a demand for solutions that boost efficiency while prioritizing safety.
Artificial intelligence (AI) is widely viewed as the fuel for the rocket known as growth and technology stocks in 2023. While there is truth to that notion, there’s more to the story. Including the “magnificent seven” cadre of mega-cap growth names that are powering the market higher this year.
For many wealth advisors, workplace retirement plans are either a burden or an afterthought, according to John Kutz, National Retirement Plan Strategist at Franklin Templeton. He and his team explore why embracing these plans can benefit their practice, and their clients.
Federal Reserve Governor Lisa Cook said the use of artificial intelligence in the economy presents many unanswered questions for policymakers though there is some evidence that it could improve labor productivity.
Fund managers have been avoiding emerging markets (EM), especially when it comes to China. However, that doesn’t mean there aren’t opportunities that exist.
While our Washington Policy analyst believes there is a path to a resolution to avoid a government shutdown ahead of the looming September 30 deadline, the rhetoric out of Washington suggests otherwise.
The Federal Reserve weighs the data while investors wonder: Is the rate-hike cycle over?
Call it another case of bad timing for Wall Street strategists. The group, historically known to have a bullish bent, spent most of this year saying US stocks would end lower in 2023. Instead, the S&P 500 Index rallied 16% in the first half.
Last week we began exploring the details of my personal portfolio. This week we will finish and then move back to our discussion of various cycles.
With the rapid pace of urbanization, there’s an increasing demand for efficient and sustainable power solutions, and ABB’s advancements in smart grids and renewable energy integration are pivotal in meeting the demands of this transition.
Over the last 100 years, the US equity market has returned about 9% annually. What will it return over the next 100 years?
To survive, businesses must grow. Growing your practice is important in all fields, but it is particularly critical for financial advisors. Without growth, advisors risk falling into a rut and becoming stuck. Here are four tips that can help you grow your practice.
For the second time in four months, the central bank decided to not increase interest rates but indicated another hike in 2023 is likely.
The resilience of the world’s biggest bond market is top priority as US debt officials prepare to start buying back government debt, according to Josh Frost, the Treasury Department’s assistant secretary for financial markets.
While some stocks may seem expensive, there are areas of opportunity that feature attractive valuations and growth catalysts, according to the Franklin Templeton Investment Solutions team.
Treasury 10-year yields rose above 4.5% for the first time since 2007 as a more hawkish Federal Reserve adds to concern the bonds face a toxic mix of large US fiscal deficits and persistent inflation.
Many view growth stocks, including tech stocks, as sensitive to rising interest rates. Last year confirmed this thesis. That script has been flipped for the better this year as technology ranks as one of the best-performing groups in the S&P 500 despite multiple rate hikes by the Federal Reserve.
The yield on the 10-year note ended September 22, 2023 at 4.44%, the 2-year note ended at 5.10%, and the 30-year at 4.53%.
Yesterday’s Equity Symposium brought together industry thought leaders. Attendees were treated to actionable information. Additionally, the panels presented cutting-edge thinking around equities.
In this provocative one-hour webinar, VettaFi Financial Futurist Dave Nadig sits down with Andrew Smith Lewis, Founder and CEO of Alai Studios, a unique venture lab focused on the intersection of psychology, neuroscience and Artificial Intelligence with Finance, Education, and the way we live. Andrew has been instrumental in creating many of the adaptive learning systems we use today and holds multiple patents in the field.
Given concentration risk, understanding what a strategy and portfolio owns is more important than ever in current markets.
The latest Underlying Inflation Gauge full data set for August is 3.0%, down 0.1% from last month, while the prices-only measure is 2.3%, unchanged from last month. Current Headline CPI is now 3.7% and Core CPI is 4.3%.
Investment bankers were finally starting to believe in the green shoots of capital-markets activity this month, but the Federal Reserve might now have crushed them under hawkish boots.
