Asset Allocation

The jobs report closed last week with robust read outs of an official number that beat economist expectations. Below the surface, however, hours worked fell to levels often associated with recessions. This juxtaposition of more workers clocking fewer hours suggests that while employment figures are up, the quantity of work didn’t expand much.

As the November 2024 election draws near, the election outcome will profoundly affect the financial markets. Whether Donald Trump or Kamala Harris wins the presidency, each administration will bring distinct policies creating investment opportunities and potential risks for investors. With a divisive political landscape, it is crucial to understand how these potential outcomes can shape the stock market and your portfolio strategy.

Last week marked the beginning of the end of one of the most rapid interest rate hiking cycles in U.S. history.

Just like road trips can bring unexpected detours, the economy and financial markets are at their own crossroads: recession or soft landing?

The Federal Reserve began cutting interest rates. Whether the economy falls into recession, hard or soft, is anyone’s guess.

Gold and the related exchange traded funds are among this year’s best-performing assets, helped in part by interest rate cuts.

How will the U.S. dollar respond to Federal Reserve rate cuts? The factors that have supported a strong dollar for years remain largely intact.

Market conditions are shifting fast. But making impulsive changes to equity portfolios and allocations can be counterproductive.

The Wasatch team shares lessons they’ve learned on business models, portfolio management, management teams and markets.

For registered investment advisors and others who provide financial advice, autumn is the start of a season loaded with opportunity.

Flashing green light – crowd will determine path forward.

If the risk of stepping too far out into the yield curve is too much to bear, consider using intermediate bond options.

When looking at the increasingly complex structure of corporate lending in the present day, it can be easy to lose sight of the purpose of private credit and its lasting value to investors.

As we look at today’s economy and financial markets, we are at a crossroads: Will it be a long straight highway to a soft landing, or will it be a bumpy road to recession?

Investors have been embracing actively managed fixed income ETFs in 2024. The latest suite of active ETFs to catch my eye are from State Street Global Advisors.

September is typically the weakest month of the year for stocks, but thanks to the much-anticipated federal funds rate cut, the S&P 500 turned in its first positive performance in a September since 2019

We expect bond yields to trend gradually lower—but it may be a bumpy ride. These seven strategies may help investors take advantage.

The major market event in September was the Fed's 50 basis point rate cut following the September 18th Federal Open Market Committee meeting. There was broad consensus the Fed would cut rates, though the 50 basis points (as opposed to 25) and perhaps the tone of Jay Powell's press conference surprised to the upside...

CLOs have delivered the most attractive risk-adjusted returns in fixed income over the past decade, but are often deemed 'too complex.'

For many investors, the fixed income portion of their portfolio is intended to be the ballast of the portfolio.

We believe municipal bonds currently offer a compelling balance of risk and reward for investors in higher tax brackets.

In the report, Head of Greater China & Portfolio Manager Victoria Mio, explains why China’s decisive pivot from debt control to growth support could be the catalyst needed to restore confidence and unlock value in China’s markets.

The M2 money supply growth rate in the U.S. accelerated, marking the first time the monthly change exceeded a 5% annualized rate after several months of more moderate increases. A 5% money supply growth is a desirable target, as it reflects 2-3% growth in the economy with 2% inflation. Thus, the uptick in money growth is reassuring and supports the possibility that we will avert a hard landing for the economy.

Our experts explore the implications of wider S&P 500 earnings growth, potential Fed rate cuts, and the outlook for global equities and bonds amidst ongoing economic shifts.

The economy reached an inflection point, with labor market conditions squarely in focus.

The bond market is overextrapolating recession risk.

Historically, staying invested has been, in our view, an effective strategy and one to consider when it comes to election years and beyond.

As markets grapple with the implications of artificial intelligence, the AI frenzy has meant that the six largest companies accounted for more than half of the U.S. market’s return in 2023 and year-to-date (August 2024) they have accounted for nearly half again.

After months if not years of investors asking when the Fed would cut rates, we finally got our answer.

Strategies and best practices for equity portfolios.

Gold has forged multiple new record highs so far this year, and is now up some 30% year to date, 3.5% in the past week alone.

The economy is not the stock market. And that’s good news.

A new wave of opportunity seems set to flow into private credit markets, which could enhance risk-adjusted returns and diversify portfolios. What's driving this potential?

Explore fixed-income tools that generate income and infrastructure.

In theory, growing a pool of wealth over decades – whether for a family, an endowment, or a pensioner – is a straightforward endeavor.

When stock markets rise, the bullish narrative tends to dominate, overlooking the potential impact of market declines. This oversight stems from two main problems: a basic misunderstanding of math and time’s critical role in investing.

On September 18, 2024, the Federal Reserve cut interest rates by 0.5%, bringing the federal funds rate down to a range of 4.75% to 5%. This move, aimed at managing inflationary pressures while addressing the gradual rise in unemployment, underscores the Fed’s balancing act between fostering economic growth and taming inflation.

In the latest episode of ETF 360. VettaFi's Kristen Chang spoke to Winslow Capital's Barry Peters about their new active growth funds

Taxes may be the biggest fee your tax-sensitive clients are paying on their investment portfolios. And neither they nor you, their advisor, may be aware of just how big that fee is.

Schwab Sector Views is our six- to 12-month outlook for stock sectors, which represent broad sectors of the economy. The Schwab Center for Financial Research (SCFR) combines a factor-based approach with a market and economic assessment to determine the ratings. For the basics on sectors, please see Stock Sectors: What Are They? How Are They Used?

The seasons are changing. This weekend marks the autumn equinox—a time of year when the days get shorter, the weather gets cooler, and the leaves start to turn (at least for our friends in the north). While our calendars will show that fall has officially arrived, it may not feel like it as much of the nation will be enjoying unseasonably warm weather.

I was pleasantly surprised by the Federal Reserve (Fed) decision to begin the easing cycle with a 50-basis point (bp) cut as the real economic data came in relatively stronger than expected.

Successful investing doesn’t have to be a thrill ride.

On September 18, the Federal Reserve cut the Federal funds rate, as expected, announcing at the same time that the Fed will continue to reduce its balance sheet. In my view, both of these decisions were appropriate. The Fed reduced short-term rates by 50 basis points, which was consistent with economic conditions that remain near the threshold of recession.

A potential recession could push even more investors to bond, but recession or not, investors can reap the benefits of core bond exposure.