In a new piece, GMO’s Asset Allocation Team notes that even with the battering of growth stocks in 2022 there is still ample opportunity to benefit from betting on cheap value stocks versus expensive growth names.
Lifetime income solutions are high on the wish lists of defined contribution (DC) plan participants, with the certainty of a guaranteed lifetime income stream ranking as the top feature in our surveys over the past decade.
The terminology ‘Frontier Markets’ inspires images of exotic geographies, colourful politics and investor adventurism.
Investors are terrified.
Mexico was the best-performing Latin American market in 2021 and our recent trip reinforced the reasons to remain bullish.
Rising inflation, rate hikes, supply-chain problems and the Russia-Ukraine war have contributed to growing recession fears.
Several avenues for diversifying cryptocurrency portfolios exist. Investors should weigh the costs and benefits of each of the following three methods.
Persistent … or transitory? It’s the inflation question that has been weighing on financial markets over the last year. As each economic data point trickles out, it is analyzed and re-analyzed, with that focus in mind. But it may be the wrong question to ask.
The proliferation of semiconductors throughout our economy may drive more durable, less cyclical demand and earnings.
Multi-asset strategies have caught the eye of market participants seeking pre-packaged solutions to diversification. Whereas many of these strategies are becoming increasingly complex—with black-box allocation algorithms, multiple signals, and 10 or more components—the S&P Target Risk Indices offer a more transparent approach.
Read on to explore:
Madonna was right. That iPhone on which you may be reading this article is far less important to society than the materials – like steel and plastic – that were used to build it.
There’s no way of knowing for certain whether a recession is imminent, but for many Americans, it’s sure starting to feel that way. According to Google, more people in the U.S. searched for the term “recession” than at any other time in the past two years.
With National 529 Day last month and graduation season underway, the cost of education is at the top of many people’s minds.
This article is relevant to financial professionals who are considering offering model portfolios to their clients.
When will the bear market end?
If you’re itching for a dream vacation this summer after two years of travel restrictions, then you might end up paying more to rent a car than you spend on a plane ticket.
Thoughts on recent market volatility and implications for investors from Head of Franklin Templeton Institute, Stephen Dover.
Here's an interesting set of charts that will especially resonate with those of us who follow economic and market cycles. Imagine that five years ago you invested $10,000 in the S&P 500. How much would it be worth today, with dividends reinvested but adjusted for inflation? The purchasing power of your investment has increased to $15,778 for an annualized real return of 9.2%.
New research quantifies the implicit cost that investors incur when index funds, such as those tracking the S&P 500, are rebalanced. Those costs may be avoidable by adopting trading strategies that introduce the possibility of tracking error.
I’m going to review the research on safe-spending rates and then critique common methods of risk mitigation. I’ll offer the practical methods to reduce sequence-of-return risk that I suggest to my clients.
Is a “lost decade” ahead for markets?
Is long-term strategic investing out the window? To earn returns in today’s market, you need a team that will rethink your investment philosophy and strategy.
Sharp, countertrend rallies may continue this year, but aggressive Fed policy, the turning of the liquidity tide, and slower economic growth will likely keep pressure on stocks.
We strongly believe that the traditional benchmark-led approach to investing in emerging market debt can be far from optimal.
The first half of the year has so far been challenging for investors in municipal bonds.
I’ve done what many people dream of doing in their lives, but I’m ill at ease.
Through rising real yields, a slowing economy and poor seasonality, short-term headwinds remain for gold and precious metals.
Valid until the market close on June 30, 2022.
The S&P 500 closed May with a monthly gain of 0.01% after a loss of 8.8% in April. At this point, after close on the last day of the month, four of five S&P 500 strategies are signaling "cash" — Vanguard REIT Index ETF (VNQ), iShares Barclays 7-10 Year Treasury (IEF) and Vanguard All-World Index ex-US ETF (VEU), and Vanguard Total Stock Market ETF (VTI) — unchanged from last month's quadruple "cash" signal.
Has the global investment environment which we have grown accustomed to over the past few decades fundamentally changed?
The bear has ended a long hibernation.
You may think that going independent means you’ll have less time for client interactions—after all, you’ll have an office to run. Well, that’s not true for breakaway advisors who partner with the right firm. A recent Cerulli Associates study breaks down how much time breakaway advisors save by partnering with Commonwealth. You’ll get stats such as:
Take control of how you spend your time. Are you ready to make an informed decision about your independence? Get started today.
Meet a woman driven to change investment regulation and understand why it’s important that she succeeds.
With economies scrambling for alternatives to Russian fossil fuels, Dina Ting, our Head of Global Index Portfolio Management, offers perspective on single-country portfolio exposure to other world oil producers.
The following is a hypothetical and fictional account of how big tech can disrupt the wealth management industry. A back-to-client focus is discussed. reminiscent of how Apple’s Mac OS empowered users and supplanted predecessor operating systems.
Soaring commodity prices have helped drive inflation to 8.5%, by far the highest level in the last few decades.
Since the global financial crisis, assets in private credit have grown exponentially as investors search for yield while protecting against inflation and rising interest rates.
Research Affiliates discusses the intriguing long-term outlook for value stocks, and provides insights on the models that underpin its asset class forecasts.
John Paul Lech, Lead Manager of the Matthews Emerging Markets Equity Fund, explains the potential value that unique real estate equities can offer emerging market-growth portfolios.
Looking for a tactical way to de-risk your portfolio? You might consider rotating a portion of your equity allocation into high-yield bonds.
Wylie Tollette, Head of Client Investment Solutions with Franklin Templeton Investment Solutions, joins the head of the Franklin Templeton Institute, Stephen Dover, for a conversation on the recent equity market selloff.
This article explores the benefits of annuities with lower explicit fees, a category I dubbed as “annuities Lite” in a previous article that focused on GLWBs.
Investor sentiment has become so bearish that it’s bullish.
The Strategic Investment Conference wrapped up this week with another wave of strong, fascinating speakers and panels. Today I have more to share and, as you’ll see, the plot thickened considerably.
Rising yields, wider spreads, and heightened market volatility are providing an attractive environment, but caution in credit selection is warranted.
“That’s a great stock; I think I’ll take a big position in my portfolio.” That’s how all too many investors make their investment decisions. Mistake, big mistake. Use our Premium membership service to send this to clients and prospects with your firm’s logo.
In our latest insight, we analyze the recent DALBAR study to determine how well (or not well) active fixed-income investors performed during the bull market and explain what we believe will be the best approach for fixed-income investing given the start of a pro-inflation paradigm shift.
The geopolitical crisis in Ukraine creates a stagflationary shock for global economies. The plan to fight inflation just got far more complicated for global central banks.
Heightened market volatility has led to misconceptions about credit, in our view. We dispel four of them here.
U.S. stocks suffered another day of losses Monday, as the market continued to weigh the risk that the Federal Reserve’s aggressive anti-inflation campaign could push the economy into recession.
“Don’t be bearish.” That was the message delivered by a Wall Street Journal article in August 2021.
Investor interest and participation in private markets continues to grow.
Higher interest rates from the Federal Reserve's efforts to get a handle on inflation have contributed to the stock market's worst start to the year since 1939. That's bad news for investors, but the market signal being sent to corporate America is good news on the inflation front.
We assess risks and potential opportunities for multi-asset portfolios amid late-cycle dynamics, higher inflation, rising interest rates, and geopolitical uncertainty.
The Milken Institute Global Conference continues in Beverly Hills, California, bringing together investors, dealmakers, power brokers and celebrities to discuss markets and megatrends. Academics, sports stars, entrepreneurs and politicians among the thousands coming to the Beverly Hilton for the event, which runs through Wednesday.
Regular readers of WisdomTree blogs know that we are firm believers in both asset class and risk factor diversification when building our Model Portfolios.
My good friend Ben Hunt of Epsilon Theory has written what I think is one of his most powerful letters ever. He’s basically saying the Fed just isn’t going to make it. I wish I had written it. He is such a wordsmith. With that, let’s turn it over to Ben.
In a market environment of low bond yields and record high equity valuations, it’s time to look beyond simple asset-class diversification. A covered call strategy could provide clients with potential for growth, income and downside protection.
Russ Koesterich, Managing Director and Portfolio Manager of the Global Allocation team, discusses the case for the cheaper segments of growth stocks.
In the span of just over two years, the world economy has been stricken by a pandemic and challenged by a military conflict in the heart of Europe. Major historical turning points are nearly always accompanied by fundamental shifts in the economy. The pace of history is accelerating with the global energy transition, urgency to secure reliable supplies of traditional energy, and locking in renewable alternatives. This shift will be driven by technology and innovation.
With the world economy still recovering from the COVID-19 pandemic and now dealing with the Ukraine-Russia crisis, markets face a great deal of uncertainty.
Disaster is a strong but appropriate word that applies perfectly to the state of U.S. monetary policy.
U.S. stocks fell Friday, extending a run of weekly losses into its third straight week, as investors reacted to a handful of disappointing earnings reports and the Federal Reserve’s increasingly aggressive language about future interest rate increases.
I require clients to send me their most recent tax returns. Here are the insights I learn and how it provides a ton of value to clients.
After a multi-decade pause, the winds of inflation have picked up. Only TIPS have been an effective hedge against inflation. Other asset classes have failed to varying degrees.
The surging popularity of direct indexing has led to confusion. Some believe it is barely indistinguishable from indexed investing, while others claim it is active management “in drag.”
Is it still a “bear market rally?”
Our words help us dress up or dress down for the occasion.
An often overlooked and underutilized fixed-income alternative, preferred securities offer investors compelling diversification and income opportunities in today's volatile, rising interest rate environment. With yields and returns comparable to high-yield fixed income, today's preferred securities have evolved into a distinct and attractive income-generating asset class.
Long-maturity Treasuries are contending with their biggest drawdown on record, at least according to their most popular exchange-traded fund.
While the lower fees associated with GLWB Lite products make them seem more attractive, the expected income is significantly lower than other annuities.
In this article, I will explain how to structure an income strategy that best serves the needs of constrained investors. Demographic, economic, cultural, and social forces argue for a new approach to retirement planning.
You have to feel sorry for active managers.
The countries’ weight in global trade is relatively small, but outsize exports of raw and semi-finished goods may portend price hikes across a variety of industries.
An unusually strong tug of war between economic forces is playing out in global markets, with a booming economy and low unemployment offset by the effects of the Russian invasion of Ukraine and expanded inflation. Expectations over the timing and magnitude of Fed interest rate increases rapidly evolved as clarity began to emerge around central bank responses to inflation.
Over the past decade it has seemed like Value investors have been very much left on the sidelines, bemoaning rampant speculation and valuations untethered from fundamental reality, while Growth investors have, quite frankly, been living it up in some style.
China’s currency, the renminbi (RMB), remains strong even though many of the factors that have driven its performance over the last two years have weakened.
Central to my market and macro outlook at present is the likelihood we are amid a growth cycle downturn that is looking to decelerate meaningfully in the coming months.
For years, small accounts have been overcharged and underserved. I’m encouraged, however, by what I see some advisors doing, I wish the rest of the profession were inspired to similarly elevate the value provided for the price charged small clients.
Many advisors don’t understand risk. They apply different standards when it comes to assessing risk in their business and personal lives.
It’s the next big market call that could enrich traders across Wall Street: The raging global energy crisis and ever-more hawkish central banks knock key economies into 1970s-style stagflation. It’s a long shot for now, but anxiety is building among money managers that this market scenario -- out-of-control inflation just as growth slumps -- will eventually come to pass, especially in Europe.
Rising rates are a direct shot at your bond portfolio. But there's a real opportunity to address your equities and position them optimally for a rising rate environment.
As dangerous as it is to simply extrapolate past returns into future expectations, an even bigger mistake is planning a financial future based on nominal gross returns, forgetting about how large bite expenses, taxes, and inflation will take from the bottom line. Use our premium membership service to forward this article to clients with your logo.
Underlying oil market fundamentals – good ol’ supply and demand – are as bullish as they have been over the past decade, says Pavel Molchanov, Managing Director and Energy Analyst for Raymond James Equity Research.
It's no secret that in fixed income markets, excess performance above the benchmark is difficult to achieve over the long run.
With the US Federal Reserve (Fed) and other central banks going down the path of increasing policy rates, it seemed a good time to look at market impacts over the last 40 years or so.
Given that (1) investors have benefitted from a market environment that reliably produced a source of positive returns from a 60/40 mix, and (2) we’ve just completed the best period for that mix in nearly 70 years of tracking, why would an investor want to consider a change?
Diverse opportunities in Global Convertibles, as well as structural features, provide tailwinds to counter rising rates and equity volatility. In rising rate environments, convertibles have historically done quite well relative to longer-duration traditional fixed income investments.
There is no shortage of headwinds facing both the market and the economy: the tragic Russian invasion of Ukraine and attendant commodity/energy crisis; the Federal Reserve's transition from accommodative to tighter monetary policy; and increased chatter of a recession on the horizon; among others.
While most of the world watches in horror as Vladimir Putin advances his military invasion of Ukraine, Russia’s congruent foray into Bitcoin, gold-linked rubles and central bank digital currencies is triggering a conflicted response from financial technology and crypto enthusiasts.
Asset Allocation
Time To Jump Aboard The Value Train
In a new piece, GMO’s Asset Allocation Team notes that even with the battering of growth stocks in 2022 there is still ample opportunity to benefit from betting on cheap value stocks versus expensive growth names.
Lifetime Income Fees vs. Costs: Look Beneath the Tip of the Iceberg
Lifetime income solutions are high on the wish lists of defined contribution (DC) plan participants, with the certainty of a guaranteed lifetime income stream ranking as the top feature in our surveys over the past decade.
An Established Case and Emerging Trends for Frontier Markets Equity Investing
The terminology ‘Frontier Markets’ inspires images of exotic geographies, colourful politics and investor adventurism.
Investors Are Terrified, So Why Aren’t They Selling?
Investors are terrified.
Closer Look: Postcard from Mexico
Mexico was the best-performing Latin American market in 2021 and our recent trip reinforced the reasons to remain bullish.
Signs Point to Rising Recession Risk
Rising inflation, rate hikes, supply-chain problems and the Russia-Ukraine war have contributed to growing recession fears.
How to Build a Diversified Crypto Allocation
Several avenues for diversifying cryptocurrency portfolios exist. Investors should weigh the costs and benefits of each of the following three methods.
Inflation Risk: Persistent or Transitory is the Wrong Question
Persistent … or transitory? It’s the inflation question that has been weighing on financial markets over the last year. As each economic data point trickles out, it is analyzed and re-analyzed, with that focus in mind. But it may be the wrong question to ask.
Semiconductors: A Less Cyclical Future
The proliferation of semiconductors throughout our economy may drive more durable, less cyclical demand and earnings.
A Streamlined Approach to Multi-Asset with the S&P Target Risk Indices
Multi-asset strategies have caught the eye of market participants seeking pre-packaged solutions to diversification. Whereas many of these strategies are becoming increasingly complex—with black-box allocation algorithms, multiple signals, and 10 or more components—the S&P Target Risk Indices offer a more transparent approach.
Read on to explore:
We’re Living in a Material World
Madonna was right. That iPhone on which you may be reading this article is far less important to society than the materials – like steel and plastic – that were used to build it.
Are We Headed for Recession? Gold and Bitcoin Could Offer Some Cover
There’s no way of knowing for certain whether a recession is imminent, but for many Americans, it’s sure starting to feel that way. According to Google, more people in the U.S. searched for the term “recession” than at any other time in the past two years.
Saving For College: Start Small, But Start Now
With National 529 Day last month and graduation season underway, the cost of education is at the top of many people’s minds.
The Current and Future State of Model Portfolios
This article is relevant to financial professionals who are considering offering model portfolios to their clients.
When Will This Bear Market End?
When will the bear market end?
The Rental Car Apocalypse Has a Terrible Sequel
If you’re itching for a dream vacation this summer after two years of travel restrictions, then you might end up paying more to rent a car than you spend on a plane ticket.
Quick Thoughts: Navigating Uncertainty In A Rapidly Changing World
Thoughts on recent market volatility and implications for investors from Head of Franklin Templeton Institute, Stephen Dover.
The Latest Look at the Total Return Roller Coaster
Here's an interesting set of charts that will especially resonate with those of us who follow economic and market cycles. Imagine that five years ago you invested $10,000 in the S&P 500. How much would it be worth today, with dividends reinvested but adjusted for inflation? The purchasing power of your investment has increased to $15,778 for an annualized real return of 9.2%.
The Problems with Market-Cap Weighted Index Funds
New research quantifies the implicit cost that investors incur when index funds, such as those tracking the S&P 500, are rebalanced. Those costs may be avoidable by adopting trading strategies that introduce the possibility of tracking error.
Real-Life Strategies to Mitigate Sequence-of-Return Risk
I’m going to review the research on safe-spending rates and then critique common methods of risk mitigation. I’ll offer the practical methods to reduce sequence-of-return risk that I suggest to my clients.
A “Lost Decade” Ahead For Markets?
Is a “lost decade” ahead for markets?
Staying the Course No Longer Works?
Is long-term strategic investing out the window? To earn returns in today’s market, you need a team that will rethink your investment philosophy and strategy.
2022 Mid-Year Outlook: U.S. Stocks and Economy
Sharp, countertrend rallies may continue this year, but aggressive Fed policy, the turning of the liquidity tide, and slower economic growth will likely keep pressure on stocks.
No Stone Unturned
We strongly believe that the traditional benchmark-led approach to investing in emerging market debt can be far from optimal.
Making The Case for Municipal Bonds Despite Recent Volatility
The first half of the year has so far been challenging for investors in municipal bonds.
How to Navigate the Crossroads of Success
I’ve done what many people dream of doing in their lives, but I’m ill at ease.
Short-Term Headwinds Abound For Gold
Through rising real yields, a slowing economy and poor seasonality, short-term headwinds remain for gold and precious metals.
Moving Averages: S&P Inched Up in May
Valid until the market close on June 30, 2022.
The S&P 500 closed May with a monthly gain of 0.01% after a loss of 8.8% in April. At this point, after close on the last day of the month, four of five S&P 500 strategies are signaling "cash" — Vanguard REIT Index ETF (VNQ), iShares Barclays 7-10 Year Treasury (IEF) and Vanguard All-World Index ex-US ETF (VEU), and Vanguard Total Stock Market ETF (VTI) — unchanged from last month's quadruple "cash" signal.
It’s the End of the World As We Know It…
Has the global investment environment which we have grown accustomed to over the past few decades fundamentally changed?
The Mother Of All Bear Markets
The bear has ended a long hibernation.
Breakaway Implications: The Impact Your Firm Partner Can Have on Efficiency
You may think that going independent means you’ll have less time for client interactions—after all, you’ll have an office to run. Well, that’s not true for breakaway advisors who partner with the right firm. A recent Cerulli Associates study breaks down how much time breakaway advisors save by partnering with Commonwealth. You’ll get stats such as:
Take control of how you spend your time. Are you ready to make an informed decision about your independence? Get started today.
Are You Selling a Verb or a Noun?
Meet a woman driven to change investment regulation and understand why it’s important that she succeeds.
Drilling Down: Oil Production Scenarios Across Countries
With economies scrambling for alternatives to Russian fossil fuels, Dina Ting, our Head of Global Index Portfolio Management, offers perspective on single-country portfolio exposure to other world oil producers.
”Apple” Wealth Management
The following is a hypothetical and fictional account of how big tech can disrupt the wealth management industry. A back-to-client focus is discussed. reminiscent of how Apple’s Mac OS empowered users and supplanted predecessor operating systems.
Who Needs Tips When You’ve Got Friends Like This?
Soaring commodity prices have helped drive inflation to 8.5%, by far the highest level in the last few decades.
Not All Private Credit Is Created Equal
Since the global financial crisis, assets in private credit have grown exponentially as investors search for yield while protecting against inflation and rising interest rates.
All Asset All Access: Managing Portfolios Amid Evolving Market Narratives
Research Affiliates discusses the intriguing long-term outlook for value stocks, and provides insights on the models that underpin its asset class forecasts.
Elevate Your Portfolio
John Paul Lech, Lead Manager of the Matthews Emerging Markets Equity Fund, explains the potential value that unique real estate equities can offer emerging market-growth portfolios.
Want to De-Risk? Look to High Yield
Looking for a tactical way to de-risk your portfolio? You might consider rotating a portion of your equity allocation into high-yield bonds.
Making Sense of the Recent Market Selloffs
Wylie Tollette, Head of Client Investment Solutions with Franklin Templeton Investment Solutions, joins the head of the Franklin Templeton Institute, Stephen Dover, for a conversation on the recent equity market selloff.
The Elusive Benefits of “Lite” Annuities
This article explores the benefits of annuities with lower explicit fees, a category I dubbed as “annuities Lite” in a previous article that focused on GLWBs.
Investor Sentiment Is So Bearish – It’s Bullish
Investor sentiment has become so bearish that it’s bullish.
A Little Harder
The Strategic Investment Conference wrapped up this week with another wave of strong, fascinating speakers and panels. Today I have more to share and, as you’ll see, the plot thickened considerably.
Income Strategy Update: Opportunities Ahead
Rising yields, wider spreads, and heightened market volatility are providing an attractive environment, but caution in credit selection is warranted.
Biggest Mistake: A Great Stock and a Great Investment Are Not the Same
“That’s a great stock; I think I’ll take a big position in my portfolio.” That’s how all too many investors make their investment decisions. Mistake, big mistake. Use our Premium membership service to send this to clients and prospects with your firm’s logo.
Bond Investors Underperformed Despite A Bull Market. Now What?
In our latest insight, we analyze the recent DALBAR study to determine how well (or not well) active fixed-income investors performed during the bull market and explain what we believe will be the best approach for fixed-income investing given the start of a pro-inflation paradigm shift.
A Stagflationary Shock
The geopolitical crisis in Ukraine creates a stagflationary shock for global economies. The plan to fight inflation just got far more complicated for global central banks.
Credit Where Credit Is Due: Four Common Misconceptions in Public and Private Credit Markets
Heightened market volatility has led to misconceptions about credit, in our view. We dispel four of them here.
Stock Market Volatility: Schwab’s Quick Take
U.S. stocks suffered another day of losses Monday, as the market continued to weigh the risk that the Federal Reserve’s aggressive anti-inflation campaign could push the economy into recession.
Short-Term Headwinds Abound For Gold
Through rising real yields, a slowing economy and poor seasonality, short-term headwinds remain for gold and precious metals.
“Don’t Be Bearish.” The Inevitable End Of Bad Advice
“Don’t be bearish.” That was the message delivered by a Wall Street Journal article in August 2021.
Key Reasons Why Investor Interest in Private Markets Continues to Grow
Investor interest and participation in private markets continues to grow.
Stock Buybacks Are Helping Fight Inflation
Higher interest rates from the Federal Reserve's efforts to get a handle on inflation have contributed to the stock market's worst start to the year since 1939. That's bad news for investors, but the market signal being sent to corporate America is good news on the inflation front.
Late‑Cycle Strategies
We assess risks and potential opportunities for multi-asset portfolios amid late-cycle dynamics, higher inflation, rising interest rates, and geopolitical uncertainty.
Fed ‘Not Out of Bullets’ Yet to Control Inflation: Milken Update
The Milken Institute Global Conference continues in Beverly Hills, California, bringing together investors, dealmakers, power brokers and celebrities to discuss markets and megatrends. Academics, sports stars, entrepreneurs and politicians among the thousands coming to the Beverly Hilton for the event, which runs through Wednesday.
The WisdomTree Q2 2022 Asset Class and Risk Factor Review and Outlook
Regular readers of WisdomTree blogs know that we are firm believers in both asset class and risk factor diversification when building our Model Portfolios.
The Fed Is NGMI
My good friend Ben Hunt of Epsilon Theory has written what I think is one of his most powerful letters ever. He’s basically saying the Fed just isn’t going to make it. I wish I had written it. He is such a wordsmith. With that, let’s turn it over to Ben.
Beyond The Traditional 60/40 Portfolio
In a market environment of low bond yields and record high equity valuations, it’s time to look beyond simple asset-class diversification. A covered call strategy could provide clients with potential for growth, income and downside protection.
Why Recession Chatter Benefits Garp
Russ Koesterich, Managing Director and Portfolio Manager of the Global Allocation team, discusses the case for the cheaper segments of growth stocks.
Which Sectors Will Outperform Under Inflation
In the span of just over two years, the world economy has been stricken by a pandemic and challenged by a military conflict in the heart of Europe. Major historical turning points are nearly always accompanied by fundamental shifts in the economy. The pace of history is accelerating with the global energy transition, urgency to secure reliable supplies of traditional energy, and locking in renewable alternatives. This shift will be driven by technology and innovation.
How To Use Alternative Assets For Refuge In Uncertain Times
With the world economy still recovering from the COVID-19 pandemic and now dealing with the Ukraine-Russia crisis, markets face a great deal of uncertainty.
Quarterly Review and Outlook
Disaster is a strong but appropriate word that applies perfectly to the state of U.S. monetary policy.
Stock Market Volatility: Schwab’s Quick Take
U.S. stocks fell Friday, extending a run of weekly losses into its third straight week, as investors reacted to a handful of disappointing earnings reports and the Federal Reserve’s increasingly aggressive language about future interest rate increases.
How to Add Value by Reviewing Clients’ Tax Returns
I require clients to send me their most recent tax returns. Here are the insights I learn and how it provides a ton of value to clients.
Which Asset Classes Protect Against Inflation?
After a multi-decade pause, the winds of inflation have picked up. Only TIPS have been an effective hedge against inflation. Other asset classes have failed to varying degrees.
Is Direct Indexing Active Management “in Drag”
The surging popularity of direct indexing has led to confusion. Some believe it is barely indistinguishable from indexed investing, while others claim it is active management “in drag.”
Still A Bear Market Rally? Or, Is The Bull Back?
Is it still a “bear market rally?”
How Our Vocabulary Shapes Our Client Relationships
Our words help us dress up or dress down for the occasion.
The Case For Preferred Securities in a Rising Rate Environment
An often overlooked and underutilized fixed-income alternative, preferred securities offer investors compelling diversification and income opportunities in today's volatile, rising interest rate environment. With yields and returns comparable to high-yield fixed income, today's preferred securities have evolved into a distinct and attractive income-generating asset class.
Record Rout Hits $19 Billion Treasury ETF as Bond Slide Deepens
Long-maturity Treasuries are contending with their biggest drawdown on record, at least according to their most popular exchange-traded fund.
GLWB Lite: Lower Costs but Much Worse Benefits
While the lower fees associated with GLWB Lite products make them seem more attractive, the expected income is significantly lower than other annuities.
How to Plan Retirement Income for a Constrained Investor
In this article, I will explain how to structure an income strategy that best serves the needs of constrained investors. Demographic, economic, cultural, and social forces argue for a new approach to retirement planning.
Why Is Active Management So Difficult?
You have to feel sorry for active managers.
Russia‑Ukraine Ramifications: Not All Trade Is Created Equal
The countries’ weight in global trade is relatively small, but outsize exports of raw and semi-finished goods may portend price hikes across a variety of industries.
Q1 2022: Tug of War
An unusually strong tug of war between economic forces is playing out in global markets, with a booming economy and low unemployment offset by the effects of the Russian invasion of Ukraine and expanded inflation. Expectations over the timing and magnitude of Fed interest rate increases rapidly evolved as clarity began to emerge around central bank responses to inflation.
The Turn in Value is Just Getting Started
Over the past decade it has seemed like Value investors have been very much left on the sidelines, bemoaning rampant speculation and valuations untethered from fundamental reality, while Growth investors have, quite frankly, been living it up in some style.
Near-Term Renminbi Outlook: Steady as She Goes
China’s currency, the renminbi (RMB), remains strong even though many of the factors that have driven its performance over the last two years have weakened.
The Bull Case For Bonds
Central to my market and macro outlook at present is the likelihood we are amid a growth cycle downturn that is looking to decelerate meaningfully in the coming months.
How Much Should Advisors Charge Small Accounts?
For years, small accounts have been overcharged and underserved. I’m encouraged, however, by what I see some advisors doing, I wish the rest of the profession were inspired to similarly elevate the value provided for the price charged small clients.
Risky Lessons
Many advisors don’t understand risk. They apply different standards when it comes to assessing risk in their business and personal lives.
Stagflation Risk Has Investors Sinking Billions Into Hedges
It’s the next big market call that could enrich traders across Wall Street: The raging global energy crisis and ever-more hawkish central banks knock key economies into 1970s-style stagflation. It’s a long shot for now, but anxiety is building among money managers that this market scenario -- out-of-control inflation just as growth slumps -- will eventually come to pass, especially in Europe.
How to Position Equities for Rising Rates
Rising rates are a direct shot at your bond portfolio. But there's a real opportunity to address your equities and position them optimally for a rising rate environment.
Net, Net, Net: Expenses, Taxes and Inflation Can Eat Your Nest Egg – What To Do?
As dangerous as it is to simply extrapolate past returns into future expectations, an even bigger mistake is planning a financial future based on nominal gross returns, forgetting about how large bite expenses, taxes, and inflation will take from the bottom line. Use our premium membership service to forward this article to clients with your logo.
Geopolitics Only One Factor In Rising Oil Prices
Underlying oil market fundamentals – good ol’ supply and demand – are as bullish as they have been over the past decade, says Pavel Molchanov, Managing Director and Energy Analyst for Raymond James Equity Research.
Best Practices For Fixed Income Restructures: Evaluating Four Portfolio Transition Strategies
It's no secret that in fixed income markets, excess performance above the benchmark is difficult to achieve over the long run.
Equity Sector Performance During Fed Tightening Cycles
With the US Federal Reserve (Fed) and other central banks going down the path of increasing policy rates, it seemed a good time to look at market impacts over the last 40 years or so.
Complementary Asset Classes: Why Now?
Given that (1) investors have benefitted from a market environment that reliably produced a source of positive returns from a 60/40 mix, and (2) we’ve just completed the best period for that mix in nearly 70 years of tracking, why would an investor want to consider a change?
Global Convertible Market Update: Portfolio Manager Q&A
Diverse opportunities in Global Convertibles, as well as structural features, provide tailwinds to counter rising rates and equity volatility. In rising rate environments, convertibles have historically done quite well relative to longer-duration traditional fixed income investments.
No Quarter (For Consistency)
There is no shortage of headwinds facing both the market and the economy: the tragic Russian invasion of Ukraine and attendant commodity/energy crisis; the Federal Reserve's transition from accommodative to tighter monetary policy; and increased chatter of a recession on the horizon; among others.
Russia’s Push Into Crypto Is a Big Step Backwards
While most of the world watches in horror as Vladimir Putin advances his military invasion of Ukraine, Russia’s congruent foray into Bitcoin, gold-linked rubles and central bank digital currencies is triggering a conflicted response from financial technology and crypto enthusiasts.