Active Management

The popping of the bubble in US stocks is far from over and investors shouldn’t get too excited about a strong start to the year for the market, warns Jeremy Grantham, the co-founder and long-term investment strategist of GMO.

There was much mirth online when the US Justice Department announced the arrest of crypto exchange Bitzlato’s founder last week.

Advisors can illustrate the risks in single-stock positions by educating their clients on the historical evidence that demonstrates diversification is the prudent strategy.

It’s big news that Envestnet is moving into the RIA custodial space and will soon be competing head-to-head with its biggest integration partners: an expanded Schwab platform, Fidelity and Pershing. I suspect that this is just the first of many so-called software “platforms” that will jump into the custody competition.

Cathie Wood is back to selling JD.com Inc. shares after a hiatus of about six months as Chinese technology stocks see a historic rebound helped by regulatory easing.

The America First trade that sent money gushing to the US over the past three years is finally starting to lose its shine as market optimism gravitates back to unloved markets outside of the world’s biggest economy.

Macro hedge funds, which look at economic trends and take advantage of dislocations across asset classes, had a banner year in 2022.

Advisors must redesign their entire approach, starting from the client's point of view.

Markets provided investors with a dozen lessons in 2022 (and a bonus one in the postscript).

You read that right. The Fed wants lower stock prices.

The six biggest Wall Street banks are expected to slash their corporate bond issuance in 2023 for a second year in a row, offering a bright spot for investors nursing record losses from the debt last year.

Demand for Europe’s debt sales has topped half a trillion euros already this year as investors seek to put money to work in bonds offering some of the highest yields in years.

The California Public Employees’ Retirement System is making a $1 billion wager that small private equity firms without the heft of the biggest buyout institutions can boost the pension giant’s returns and clout.

The bond market is much cheaper than the stock market, according to Jeffrey Gundlach. Investors should abandon the traditional 60/40 stock/bond allocation in favor of a 40/60 split.

Meta Platforms Inc. is expected to be the top-performing megacap internet stock this year, according to a JPMorgan survey of investors, suggesting a rebound for the Facebook parent after its worst year on record.

Tens of thousands of tech sector job cuts may not be enough to reverse the collapse in share prices, given the looming economic downturn could slash companies’ revenues far more than the cost savings they make via layoffs.

Asia’s benchmark stock index was on track to enter a bull market, as China’s reopening and a weakening dollar lure investors back to the region.

Investors are bracing for a miserable stretch of earnings reports that will likely extend the dominance of value shares as Corporate America grapples with high inflation and rising borrowing costs, the latest MLIV Pulse survey shows.

One of the biggest breakdowns has been in the relationship between stocks and bonds. Stock prices and bond prices are usually not correlated, meaning bonds can serve as the cornerstone of a hedge when stock prices waver and drop.

Countless investment practitioners and academics have unsuccessfully searched for the metric that can successfully identify future mutual fund outperformers. What follows is the saga of the latest failed attempt.

The $6.5 trillion US ETF industry boomed in 2022 as innovative product debuts and market volatility fueled a near-record number of launches. But the fanfare revealed a major flaw in the space: the lack of women helming the funds.

In the rough year ahead, bonds might be one of the only bright spots. It would mark a dramatic turnaround from 2022, when bonds fell alongside almost every other asset class, posting their worst year in a generation.

One of the biggest hits in the $6.6 trillion exchange-traded fund industry last year has a worthy opponent in 2023: the bond market.

The US stock market will bottom by the middle of 2023 as the Federal Reserve tamps down inflation without causing anything worse than a “mild” economic recession, according to Byron Wien’s annual list of surprises.

Let's examine the three paths the Fed might take in 2023 and what they mean for stock prices.

Tesla Inc. is expected to announce record quarterly deliveries in early January but that may not be enough to satisfy investors as the electric-vehicle leader grapples with inflation, rising interest rates, crimped production in China and concerns about softening demand.

The US Treasury Department signaled some imported cars will qualify for electric-vehicle tax credits in the Inflation Reduction Act, a move that could assuage Asian and European allies’ concerns about the sweeping climate legislation.

The asset management arm of BNP Paribas SA said using a different interpretation of “sustainable investment” than some of its peers has allowed it to keep the European Union’s top ESG tag attached to about $20 billion worth of funds.

Crypto is squarely in the cross hairs of Washington regulators, with fresh calls for stricter controls before the industry can get big enough to affect the broader financial system.

The end of 2022 can’t come soon enough for many in the banking industry. Sputtering capital markets, job cuts, raging inflation, the crypto meltdown and rising interest rates marked a year of upheaval.

The Fed’s repeated manipulation of the price of capital has weakened productivity growth and reduced economic activity. Ultimately it is the citizens that pay the price.

Investors ready to turn the page on the worst year for equities since the global financial crisis should brace for more pain heading into 2023.

A handful of giant firms are gaining dominance over the hottest corners of the hedge fund industry. This year showed why.

“I have never seen so much bearishness in the market,” Jeremy Siegel said, “which is a great sign for stock investors.”

The economic tea leaves suggest that 2023 could be another challenging year for both stocks and bonds. However, the outlook is more balanced given that equity valuations are much lower and bond yields much higher.