Join VettaFi and the investment team from Motley Fool Asset Management as they explore how market dynamics have changed in recent decades—holding periods, active/passive split, trading frequency, and availability of information—and how they believe investors should adapt their mental framework to improve long-term results.
In 2022, both fixed income and equities stumbled, creating greater focus on alternatives. As market headwinds continue to remain strong, investors are increasingly turning to alternative strategies to increase diversification, address higher rates, and mitigate risk. Join the experts at Swan Global and VettaFi for a webcast that digs into where alternatives can fit in a portfolio.
Topics will include:
The punditry knows that clients dread uncertainty. They count on it. They prey on it.
International Deep Value: Extreme cheapness ignores relative fundamentals.
With stocks struggling to break out of their range, rates climbing, and valuations stretched investors are rightly asking whether it’s time to sell.
Transitioning into the post-COVID investment environment shifts the foundations of portfolio construction that investors relied on in recent decades. On full display in 2022, inflation and recession risk punished both bonds and stocks together to historic declines.
For this edition of Bull vs. Bear, Nick Peters-Golden and Karrie Gordon discussed the fundamentals for and against investing in Japan ETFs.
The first few years of the 2020s have seen a number of acute economic, financial, and geopolitical disruptions on a worldwide scale, and it will take time for the ultimate consequences of these shocks to be fully felt.
Despite market headwinds, investors remain bullish on real estate. As traditional sectors, like office and retail, continue to underperform, farmland presents an opportunity for investors seeking capital preservation and downside protection.
ChatGPT and AI seem to be everywhere these days, but what do they really mean for asset management and financial advisors? Does AI arrive as just a theme, or can it really have an immediate impact on financial advisors’ work?
Anne Walsh, CIO for Guggenheim Partners Investment Management, discusses drivers of returns going forward. She also offers advice to young women looking to make a career in asset management.
Relative rotation entails shifting among stocks, sectors, and stock factors. The strategy adds significant value to portfolio management if done well.
The collapse of Silicon Valley Bank will likely lead to tighter credit conditions as banks pull back from lending. Private credit managers are poised to fill the void that banks have left and can negotiate favorable terms, according to Franklin Templeton Institute’s Tony Davidow.
Real estate ETFs have become a popular investment option for investors who want to gain exposure to the real estate market without owning physical properties. However, with some experts predicting a real estate recession, advisors may be wondering if such funds remain a good option.
Zehrid Osmani, Head of Global Long-Term Unconstrained at Martin Currie, discusses the recent positive earnings reports from large U.S. banks and explains why their firm has no plans to invest in the banking sector.
Investors have had a lot to contend with thus far in 2023. Moderating economic growth, persistent inflation, volatile interest rates, falling profits, stress in the banking sector, war in Ukraine, and the debt ceiling debate all combined to weigh on sentiment.
In this provocative discussion, VettaFi Financial Futurist Dave Nadig sits down with Zeno Mercer, Senior Research Analyst at ROBO Global, and Adam Butler, CIO of Resolve Asset Management to delve into two intertwined.
The once-hot Wall Street trades of 2023 are all falling apart, in a fresh blow to market pros blindsided again and again ever since the pandemic broke out.
Top Silver Mining CEO: "On the demand side, it’s pretty phenomenal…"
We see the market’s focus returning to higher-for-longer rates and sticky inflation after a U.S. debt ceiling deal. We prefer an up-in-quality portfolio.
The drama characterizing the first half of 2023 may abate, with potentially milder returns for investors due to the effects of the Cardboard Box Recession.
Exposure to MLPs and Midstream can help investors enhance their income generation and enjoy diversification benefits. Join the experts at VettaFi and SS&C ALPS Advisors for a webcast covering the terrific yield potential in energy infrastructure.
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 $13,927 for an annualized real return of 6.64%.
Nvidia’s (NVDA) management team is sending a signal to the market.
Portfolio Manager Alex Zarechnak identifies six key themes from the COVID years—some new, some familiar—to help anchor investors in today’s emerging markets.
Tony Davidow, Senior Alternative Investment Strategist with Franklin Templeton Institute, illustrates the potential impact of adding alternative investments to pursue growth and income—as well as seek to dampen volatility—during the accumulation and distribution phases of retirement.
Tired of the AI hype yet? It’s OK, I understand. I’m tired of it too. The pace of human progress — and our insatiable need to be entertained by the shock of the new — seems to be forevermore in the “hockey stick” part of the growth curve.
At of the start of this year, Rick Pitcairn took on a new position as the chief global strategist at Pitcairn, a 100-year-old multi-family office with $7bn in client assets. In this position, he is focusing on macro-economic trends and is searching for new global initiatives that will add to the firm’s growth.
Rick recently journeyed to India where he met with some of the wealthiest local families to discuss multi-generational wealth transfer. He saw that people all around the world want the same things, including economic security and a safe environment to raise their children. But the investing and business environments differ significantly. Rick knows that U.S. investors have a home bias, but he saw substantial economic growth is happening outside our borders. Rick is here to discuss if an international allocation appropriate or too risky.
The empirical evidence supports Seigel’s general assertion that stocks beat inflation in the long run. But the inflation-hedging benefits of stocks aren’t perfect.
Improved value proposition in credit.
History suggests that a soft landing might be difficult, as the U.S. has entered a recession following the last five periods when inflation peaked above 5%.
I will analyze the pros and cons of three funds to access the reinsurance market.
As fast as it went up for value managers, it’s coming down. The culprit is the all-consuming craze for artificial intelligence.
The industry group Airlines for America predicts that approximately 257 million people will travel on U.S. commercial airlines this summer, representing a 9.5% increase from last year. That would also set a new record, as volumes are projected to surpass the summer 2019 levels by around 2 million passengers.
Managing substantial wealth often requires specialized capabilities and expertise.
529 plan benefits abound no matter which type of plan you choose. Read on to get a full understanding of what 529 plans can do for you.
When portfolio manager David Lipner said he was quitting billionaire Izzy Englander’s Millennium Management to join a rival, the hedge fund countered with an unusual proposal: A one-year paid sabbatical and an incentive upon return if Lipner stayed.
In the five months prior to U.S. recessions dating to the 1920s, the equity Momentum factor was the top performer, with an annualized cumulative excess market return of +6.7%, on average.
Inflation is one way the U.K. is paying for leaving Europe.
The private equity (PE) industry has been all the rage over the past 10 years.
Review the latest Weekly Headings by CIO Larry Adam.
The Federal Reserve’s higher interest rates, the work from home trend, ESG distractions, increases in crime, etc., are having far reaching effects on our economy and investors.
Investors have been loading up on T-bills and money market funds this year, but according to our Total Return team, that is not a sustainable strategy as it exposes investors to both reinvestment risk and inflation while creating an asset/liability mismatch.
Inflation has proven sticky, even as growth weakens. Markets are realizing that policy rates are set to stay higher for longer. We like quality in stocks and bonds.
This week, the VettaFi Voices come together for an abbreviated chat about an important topic: the debt ceiling.
Valid until the market close on June 30, 2023
The S&P 500 closed May with a monthly gain of 0.25%, after a gain of 1.46% in April. At this point, after close on the last day of the month, two of five Ivy portfolio ETFs — Vanguard Real Estate ETF (VNQ) and Invesco DB Commodity Index Tracking Fund (DBC) — are signaling "cash", unchanged from last month's final double "cash" signal.
A two-day M&A conference highlighted the growing influence of private-equity investors in the RIA business.
Without understanding people – how they think and act, and what they believe – you can’t effectively help them, no matter how good you are at planning or asset allocation.
The concentration of gains up the cap spectrum isn't itself a precursor to weakness; it's the lack of participation from the "average stock" that warrants some caution.
A debt ceiling deal is within sight.
Some of the most common questions clients ask advisors revolve around retirement:
New research from Dimensional addresses these questions. The study found that investors who tilt towards size, value, and profitability in their equity allocation are likely to enter retirement with significantly more assets, sustain their retirement spending longer, and to leave behind larger bequests than with a standard, broad-market-index portfolio. Given the popularity of broad market indexing, the findings have implications for advisors. Joining us to talk about the research is Mathieu Pellerin.
A range-bound VIX between 20-35 has common markers and dynamics which signal a “crisis gateway” that deserves a defensive posture.
Treasury bills maturing in the first half of June rallied as trading resumed following the Memorial Day holiday after a deal to lift the debt ceiling eased concern over the prospect of a calamitous US default.
The Northern Trust Economics team shares its outlook for major markets in the months ahead.
As other nations seek to become less dependent on the U.S. dollar, rumors of the greenback’s potential demise continue to swirl. Can the dollar remain king of the world’s reserve currency?
Last week the VettaFi Voices gathered to reflect on a year at VettaFi under the firm’s new name. The team celebrated wins, and time spent together, and shared their favorite insights and highlights from a busy twelve months.
While we don't expect the U.S. government to default, the uncertainty may heighten market volatility in coming days. Here are answers to some of the questions we're hearing most often.
First-quarter earnings largely surprised to the upside, but expectations also had been guided down. What does the latest earnings news mean for stock investors? Carrie King, Global Deputy CIO of BlackRock Fundamental Equities, offers three observations.
Bonds issued by government-sponsored enterprises can offer slightly higher yields than U.S. Treasuries, without requiring investors to take on too much additional risk.
Stocks are having a great year, but gold is doing even better. Year-to-date global equities are up roughly 9% in dollar terms; gold has advanced more than 10%.
Over the past decade or so, there has been a broad trend in the industry toward closing and freezing defined benefit plans.
The 60/40 portfolio – and diversification in general – is undeniably justified.
AI’s arrival will have an increasingly large impact on our lives. That includes investing and, especially, other aspects of financial planning.
Most of us spent moments of our childhood, crayon in hand, connecting numbered dots that gradually revealed a picture that we couldn’t deduce simply by looking at the separate dots. With experience, we got better at looking at those isolated dots and mentally connecting them into a coherent “gestalt.”
To better understand the state of play, VettaFi’s financial futurist Dave Nadig met with Canopy founder Eric Golden for a discussion on crypto’s prospects.
We prefer private to public credit long term on better return potential. It’s the mirror image in equity: We prefer public stocks as risks fade in the medium term.
Join the experts at abrdn and VettaFi to learn how an allocation to infrastructure could boost your portfolio.
We must understand our clients’ purposes and how they fit together in their lives. We need to take the initiative when rebalancing is in order.
Bond-market titans BlackRock Inc., Pacific Investment Management Co. and Vanguard Group Inc. are warning that recent violent swings in US Treasuries are only the beginning of a new era of volatility that’s here to stay until central banks conquer inflation.
Diversification is a cornerstone of thoughtful, long-term focused investing. Incorporating assets and asset classes that don’t always move in tandem – that is, their returns aren’t strongly correlated – can help temper stock and bond market risk.
Tax-loss harvesting is one of the direct indexing’s biggest benefits. The automation that direct indexing provides greatly increases the strategy’s potential benefits.
A better retirement stress test would focus on the standard of living in retirement and how spending would need to change in times of market turmoil or heightened inflation.
Many investors view real estate as an attractive long-term investment opportunity that plays an important role in portfolio diversification. With that in mind, Columbia Threadneedle Investments recently announced the expansion of its exchange-traded fund offerings with the launch of the Columbia Research Enhanced Real Estate ETF (Ticker: CRED). The fund offers investors and allocators an accessible, research-driven way to gain exposure to the real estate asset class. REITS have a history of low correlations and attractive long-term returns and have a strong historical performance record in high inflation. According to a recent Columbia Threadneedle survey, 93% of financial advisors plan to maintain or increase their real estate allocations over the next 12 to 24 months.
A member of Putnam's Fixed Income team since 2007, Onsel Gulbiten analyzes macroeconomic issues, including inflation, interest rates, and policy developments.
Banks and financial institutions are big issuers of preferred securities, so the recent banking industry volatility has had an impact. Our guidance on preferreds is unchanged but with some caveats.
The distinction between futures-based ETFs and crypto equity ETFs is clear when you look closely at the two. But even when examining them closely, it may be difficult to distinguish between the different types of blockchain/crypto equity ETFs because of similarities with fintech, metaverse, and Web3 concepts.
We propose a golf-inspired advisor assessment framework with a scorecard, fairway average and handicap as performance measures to quantitatively assess an advisors’ investment performance.
Risk-averse investors seeking defensive systematic strategies to reduce left-tail risk should broaden their search beyond low volatility/low beta.
Investors are planning to ramp up bets in emerging markets, according to the latest Markets Live Pulse survey — a sign the asset class is becoming a favorite for those wary of a US recession.
What generally follows that expression is a succinct synopsis. We’re always trying to be concise; however, distilling complex economic and investment matters usually requires several pages.
Factor investing has seen increased popularity in the US. Investors may also want to consider increasing their opportunity set by considering factors abroad.
When markets turn volatile, it’s not time to despair. Stephen Dover, Head of Franklin Templeton Institute, offers some judicious perspectives on how to turn volatility into opportunity.
Deep in the bowels of Wall Street, there’s a surprisingly successful counterfeiting operation underway: The world’s largest banks have created a booming business churning out imitation quant trades.
Credit conditions are tightening in both Europe and the United States. Our analysis follows in our mid-quarter update, Tightening Credit.
The U.S. economy is likely slowing down, and a recession seems likely in the 12-18 month time horizon.
An in-depth analysis of hedge fund performance demonstrates that, over the past 15 years, lower-beta hedge fund styles have generally achieved higher alpha, aligning with investors' objectives of maximizing returns and diversification.
Despite economic uncertainty, we see compelling value in high-quality, liquid assets that we view as more resilient in the face of a potential recession.
The Northern Trust Economics team shares its outlook for U.S. growth, employment, interest rates, and inflation.
The Federal Reserve’s latest 0.25% interest-rate hike has likely capped one of its most aggressive policy-tightening cycles in 40 years. And the cumulative 5% policy rate increase in just over a year is now starting to have an effect on rate-sensitive sectors and inflation.
Asset Allocation
How Long is Long Term for Equity Investors?
Join VettaFi and the investment team from Motley Fool Asset Management as they explore how market dynamics have changed in recent decades—holding periods, active/passive split, trading frequency, and availability of information—and how they believe investors should adapt their mental framework to improve long-term results.
Know Your Alternatives: A User’s Guide for Implementing Alternative Strategies
In 2022, both fixed income and equities stumbled, creating greater focus on alternatives. As market headwinds continue to remain strong, investors are increasingly turning to alternative strategies to increase diversification, address higher rates, and mitigate risk. Join the experts at Swan Global and VettaFi for a webcast that digs into where alternatives can fit in a portfolio.
Topics will include:
What Not to Do When Clients Freak Out
The punditry knows that clients dread uncertainty. They count on it. They prey on it.
Jump In The Deep End
International Deep Value: Extreme cheapness ignores relative fundamentals.
Will Selling in May Work This Year? Maybe Not
With stocks struggling to break out of their range, rates climbing, and valuations stretched investors are rightly asking whether it’s time to sell.
A New Playbook for Portfolio Diversification
Transitioning into the post-COVID investment environment shifts the foundations of portfolio construction that investors relied on in recent decades. On full display in 2022, inflation and recession risk punished both bonds and stocks together to historic declines.
Bull vs. Bear: Is The Hype for Japan ETFs Justified?
For this edition of Bull vs. Bear, Nick Peters-Golden and Karrie Gordon discussed the fundamentals for and against investing in Japan ETFs.
The Aftershock Economy
The first few years of the 2020s have seen a number of acute economic, financial, and geopolitical disruptions on a worldwide scale, and it will take time for the ultimate consequences of these shocks to be fully felt.
Farmland – The New Frontier of Real Estate Investing
Despite market headwinds, investors remain bullish on real estate. As traditional sectors, like office and retail, continue to underperform, farmland presents an opportunity for investors seeking capital preservation and downside protection.
Getting the Best Out of ChatGPT and AI
ChatGPT and AI seem to be everywhere these days, but what do they really mean for asset management and financial advisors? Does AI arrive as just a theme, or can it really have an immediate impact on financial advisors’ work?
Macro Markets Podcast Episode 36: "It's a bond picker's market."
Anne Walsh, CIO for Guggenheim Partners Investment Management, discusses drivers of returns going forward. She also offers advice to young women looking to make a career in asset management.
Relative Rotation – Unlocking the Hidden Potential (Part 1)
Relative rotation entails shifting among stocks, sectors, and stock factors. The strategy adds significant value to portfolio management if done well.
Alts Angle: Disruption Creates Opportunities
The collapse of Silicon Valley Bank will likely lead to tighter credit conditions as banks pull back from lending. Private credit managers are poised to fill the void that banks have left and can negotiate favorable terms, according to Franklin Templeton Institute’s Tony Davidow.
Real Estate ETFs: A Good Investment Amidst Predicted Recession?
Real estate ETFs have become a popular investment option for investors who want to gain exposure to the real estate market without owning physical properties. However, with some experts predicting a real estate recession, advisors may be wondering if such funds remain a good option.
Big U.S. Banks Had A Good Quarter. We Still Have No Plans to Invest in Them.
Zehrid Osmani, Head of Global Long-Term Unconstrained at Martin Currie, discusses the recent positive earnings reports from large U.S. banks and explains why their firm has no plans to invest in the banking sector.
Mid-Year Market Outlook
Investors have had a lot to contend with thus far in 2023. Moderating economic growth, persistent inflation, volatile interest rates, falling profits, stress in the banking sector, war in Ukraine, and the debt ceiling debate all combined to weigh on sentiment.
Beyond Chat: How AI is Impacting Real World Investing Right Now
In this provocative discussion, VettaFi Financial Futurist Dave Nadig sits down with Zeno Mercer, Senior Research Analyst at ROBO Global, and Adam Butler, CIO of Resolve Asset Management to delve into two intertwined.
Wall Street’s Once-Hot Trades of 2023 Are Unraveling in Markets
The once-hot Wall Street trades of 2023 are all falling apart, in a fresh blow to market pros blindsided again and again ever since the pandemic broke out.
Asset Managers, Industry Aggressively Snap Up Silver
Top Silver Mining CEO: "On the demand side, it’s pretty phenomenal…"
Macro Outlook Retakes Spotlight
We see the market’s focus returning to higher-for-longer rates and sticky inflation after a U.S. debt ceiling deal. We prefer an up-in-quality portfolio.
Mid-Year Outlook: Global Stocks and Economy
The drama characterizing the first half of 2023 may abate, with potentially milder returns for investors due to the effects of the Cardboard Box Recession.
Why Your Income Portfolio Needs Energy Infrastructure
Exposure to MLPs and Midstream can help investors enhance their income generation and enjoy diversification benefits. Join the experts at VettaFi and SS&C ALPS Advisors for a webcast covering the terrific yield potential in energy infrastructure.
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 $13,927 for an annualized real return of 6.64%.
Trillion-Dollar Club—Bravo, Nvidia
Nvidia’s (NVDA) management team is sending a signal to the market.
What Changed with the Pandemic (And What Didn’t)
Portfolio Manager Alex Zarechnak identifies six key themes from the COVID years—some new, some familiar—to help anchor investors in today’s emerging markets.
Alts Angle: Rethinking Retirement With Alternative Investments
Tony Davidow, Senior Alternative Investment Strategist with Franklin Templeton Institute, illustrates the potential impact of adding alternative investments to pursue growth and income—as well as seek to dampen volatility—during the accumulation and distribution phases of retirement.
Future of Finance: 5 Hard Truths About How AI Impacts the Real World
Tired of the AI hype yet? It’s OK, I understand. I’m tired of it too. The pace of human progress — and our insatiable need to be entertained by the shock of the new — seems to be forevermore in the “hockey stick” part of the growth curve.
The Case for Non-U.S. Allocations
At of the start of this year, Rick Pitcairn took on a new position as the chief global strategist at Pitcairn, a 100-year-old multi-family office with $7bn in client assets. In this position, he is focusing on macro-economic trends and is searching for new global initiatives that will add to the firm’s growth.
Rick recently journeyed to India where he met with some of the wealthiest local families to discuss multi-generational wealth transfer. He saw that people all around the world want the same things, including economic security and a safe environment to raise their children. But the investing and business environments differ significantly. Rick knows that U.S. investors have a home bias, but he saw substantial economic growth is happening outside our borders. Rick is here to discuss if an international allocation appropriate or too risky.
Is Jeremy Siegel Right About Stocks for the Long Run?
The empirical evidence supports Seigel’s general assertion that stocks beat inflation in the long run. But the inflation-hedging benefits of stocks aren’t perfect.
Fixed Income Is Now a Buyer’s Market
Improved value proposition in credit.
Hard Landing, Soft Landing, or No Landing at All?
History suggests that a soft landing might be difficult, as the U.S. has entered a recession following the last five periods when inflation peaked above 5%.
Which Fund to Choose for Exposure to the Reinsurance Risk Premium
I will analyze the pros and cons of three funds to access the reinsurance market.
How the Value Trade Has Been Smoked by the AI Frenzy
As fast as it went up for value managers, it’s coming down. The culprit is the all-consuming craze for artificial intelligence.
Airlines Are Bracing For Record Summer Travel. A Golden Opportunity For Investors?
The industry group Airlines for America predicts that approximately 257 million people will travel on U.S. commercial airlines this summer, representing a 9.5% increase from last year. That would also set a new record, as volumes are projected to surpass the summer 2019 levels by around 2 million passengers.
Complex, Significant Wealth Warrants Elevated Support
Managing substantial wealth often requires specialized capabilities and expertise.
A Primer on 529 Plan Benefits
529 plan benefits abound no matter which type of plan you choose. Read on to get a full understanding of what 529 plans can do for you.
Hedge Funds at War for Top Traders Dangle $120 Million Payouts
When portfolio manager David Lipner said he was quitting billionaire Izzy Englander’s Millennium Management to join a rival, the hedge fund countered with an unusual proposal: A one-year paid sabbatical and an incentive upon return if Lipner stayed.
Factor Investing and U.S. Recessions: How Have Key Equity Factors Performed on a Historical Basis?
In the five months prior to U.S. recessions dating to the 1920s, the equity Momentum factor was the top performer, with an annualized cumulative excess market return of +6.7%, on average.
The U.K.’s Inflation Problem
Inflation is one way the U.K. is paying for leaving Europe.
Private Equity Has a Problem
The private equity (PE) industry has been all the rage over the past 10 years.
What Will the Fed’s Updated Dot Plots Signal to the Market?
Review the latest Weekly Headings by CIO Larry Adam.
The Far-Reaching Effects of Commercial Real Estate’s Downward Spiral
The Federal Reserve’s higher interest rates, the work from home trend, ESG distractions, increases in crime, etc., are having far reaching effects on our economy and investors.
The Risk of Playing It Safe
Investors have been loading up on T-bills and money market funds this year, but according to our Total Return team, that is not a sustainable strategy as it exposes investors to both reinvestment risk and inflation while creating an asset/liability mismatch.
Markets Now Accept Rate Cuts Unlikely
Inflation has proven sticky, even as growth weakens. Markets are realizing that policy rates are set to stay higher for longer. We like quality in stocks and bonds.
VettaFi Voices On: Debt Ceiling Investing
This week, the VettaFi Voices come together for an abbreviated chat about an important topic: the debt ceiling.
Moving Averages: S&P Finishes May Up 0.25%
Valid until the market close on June 30, 2023
The S&P 500 closed May with a monthly gain of 0.25%, after a gain of 1.46% in April. At this point, after close on the last day of the month, two of five Ivy portfolio ETFs — Vanguard Real Estate ETF (VNQ) and Invesco DB Commodity Index Tracking Fund (DBC) — are signaling "cash", unchanged from last month's final double "cash" signal.
More RIA Consolidation Ahead
A two-day M&A conference highlighted the growing influence of private-equity investors in the RIA business.
How to Incorporate Behavioral Factors into Planning Discussions
Without understanding people – how they think and act, and what they believe – you can’t effectively help them, no matter how good you are at planning or asset allocation.
Total Concentration: Mega Caps Reign
The concentration of gains up the cap spectrum isn't itself a precursor to weakness; it's the lack of participation from the "average stock" that warrants some caution.
Debt Ceiling: Getting to Yes
A debt ceiling deal is within sight.
Size, Value and Factor Exposures Improve Retirement Outcomes
Some of the most common questions clients ask advisors revolve around retirement:
New research from Dimensional addresses these questions. The study found that investors who tilt towards size, value, and profitability in their equity allocation are likely to enter retirement with significantly more assets, sustain their retirement spending longer, and to leave behind larger bequests than with a standard, broad-market-index portfolio. Given the popularity of broad market indexing, the findings have implications for advisors. Joining us to talk about the research is Mathieu Pellerin.
The Time is Now for a Systemic Market Hedge
A range-bound VIX between 20-35 has common markers and dynamics which signal a “crisis gateway” that deserves a defensive posture.
Treasury Bills Climb as Traders Bet Congress Will Pass Debt Deal
Treasury bills maturing in the first half of June rallied as trading resumed following the Memorial Day holiday after a deal to lift the debt ceiling eased concern over the prospect of a calamitous US default.
Risks to Growth Are Ample but May Prove Surmountable
The Northern Trust Economics team shares its outlook for major markets in the months ahead.
Making Cent$ Of the Dollar: Understanding the Challenges to Its Global Reserve Currency Status
As other nations seek to become less dependent on the U.S. dollar, rumors of the greenback’s potential demise continue to swirl. Can the dollar remain king of the world’s reserve currency?
VettaFi Voices On: One Year as VettaFi
Last week the VettaFi Voices gathered to reflect on a year at VettaFi under the firm’s new name. The team celebrated wins, and time spent together, and shared their favorite insights and highlights from a busy twelve months.
Debt Ceiling Standoff: What Investors Should Know
While we don't expect the U.S. government to default, the uncertainty may heighten market volatility in coming days. Here are answers to some of the questions we're hearing most often.
Thank You, Consumer, and Other Sentiments From Q1 Earnings
First-quarter earnings largely surprised to the upside, but expectations also had been guided down. What does the latest earnings news mean for stock investors? Carrie King, Global Deputy CIO of BlackRock Fundamental Equities, offers three observations.
U.S. Agency Bonds: What You Should Know
Bonds issued by government-sponsored enterprises can offer slightly higher yields than U.S. Treasuries, without requiring investors to take on too much additional risk.
An End To Tightening Supports Gold
Stocks are having a great year, but gold is doing even better. Year-to-date global equities are up roughly 9% in dollar terms; gold has advanced more than 10%.
$20 Billion Club Strategy Series – Benefits Policy
Over the past decade or so, there has been a broad trend in the industry toward closing and freezing defined benefit plans.
Long Live the 60/40 Portfolio
The 60/40 portfolio – and diversification in general – is undeniably justified.
Imagine Financial Planning 2030
AI’s arrival will have an increasingly large impact on our lives. That includes investing and, especially, other aspects of financial planning.
Money, Banking, and Markets – Connecting the Dots
Most of us spent moments of our childhood, crayon in hand, connecting numbered dots that gradually revealed a picture that we couldn’t deduce simply by looking at the separate dots. With experience, we got better at looking at those isolated dots and mentally connecting them into a coherent “gestalt.”
VettaFi Viewpoints: Dave Nadig & Canopy’s Eric Golden Talk Crypto
To better understand the state of play, VettaFi’s financial futurist Dave Nadig met with Canopy founder Eric Golden for a discussion on crypto’s prospects.
Public or Private? A Strategic Question
We prefer private to public credit long term on better return potential. It’s the mirror image in equity: We prefer public stocks as risks fade in the medium term.
Investing in Infrastructure—Opportunities from Developed Countries to Emerging Market
Join the experts at abrdn and VettaFi to learn how an allocation to infrastructure could boost your portfolio.
Rebalancing Your Clients’ “Purpose Portfolio”
We must understand our clients’ purposes and how they fit together in their lives. We need to take the initiative when rebalancing is in order.
Pimco, BlackRock Call End to Era of Stable Borrowing Costs
Bond-market titans BlackRock Inc., Pacific Investment Management Co. and Vanguard Group Inc. are warning that recent violent swings in US Treasuries are only the beginning of a new era of volatility that’s here to stay until central banks conquer inflation.
Wheat, Gold and the Pursuit of a Zero-Correlation Investment
Diversification is a cornerstone of thoughtful, long-term focused investing. Incorporating assets and asset classes that don’t always move in tandem – that is, their returns aren’t strongly correlated – can help temper stock and bond market risk.
How Direct Indexing Automation Aids Tax-Loss Harvesting
Tax-loss harvesting is one of the direct indexing’s biggest benefits. The automation that direct indexing provides greatly increases the strategy’s potential benefits.
How Stress Testing Retirement Plans Builds Client Confidence
A better retirement stress test would focus on the standard of living in retirement and how spending would need to change in times of market turmoil or heightened inflation.
The Fed Remains Confronted With a Difficult Juggling Act
Review the latest Weekly Headings by CIO Larry Adam.
A New, Low-Cost REIT ETF
Many investors view real estate as an attractive long-term investment opportunity that plays an important role in portfolio diversification. With that in mind, Columbia Threadneedle Investments recently announced the expansion of its exchange-traded fund offerings with the launch of the Columbia Research Enhanced Real Estate ETF (Ticker: CRED). The fund offers investors and allocators an accessible, research-driven way to gain exposure to the real estate asset class. REITS have a history of low correlations and attractive long-term returns and have a strong historical performance record in high inflation. According to a recent Columbia Threadneedle survey, 93% of financial advisors plan to maintain or increase their real estate allocations over the next 12 to 24 months.
Economic Imbalances Could Mean Deep Recession or Sticky Inflation
A member of Putnam's Fixed Income team since 2007, Onsel Gulbiten analyzes macroeconomic issues, including inflation, interest rates, and policy developments.
Banking Stress and Preferred Securities: Now What?
Banks and financial institutions are big issuers of preferred securities, so the recent banking industry volatility has had an impact. Our guidance on preferreds is unchanged but with some caveats.
Surrounding Crypto ETFs: Metaverse, Web3, and More
The distinction between futures-based ETFs and crypto equity ETFs is clear when you look closely at the two. But even when examining them closely, it may be difficult to distinguish between the different types of blockchain/crypto equity ETFs because of similarities with fintech, metaverse, and Web3 concepts.
In Golf and Investing, Handicaps Matter
We propose a golf-inspired advisor assessment framework with a scorecard, fairway average and handicap as performance measures to quantitatively assess an advisors’ investment performance.
How to Build Defensive Equity Portfolios
Risk-averse investors seeking defensive systematic strategies to reduce left-tail risk should broaden their search beyond low volatility/low beta.
Investors Seek Shelter in Emerging Markets as Recession Risk Hits US
Investors are planning to ramp up bets in emerging markets, according to the latest Markets Live Pulse survey — a sign the asset class is becoming a favorite for those wary of a US recession.
The Long and Short of It
What generally follows that expression is a succinct synopsis. We’re always trying to be concise;
however, distilling complex economic and investment matters usually requires several pages.
International Style
Factor investing has seen increased popularity in the US. Investors may also want to consider increasing their opportunity set by considering factors abroad.
What To Do When Stuff Happens
When markets turn volatile, it’s not time to despair. Stephen Dover, Head of Franklin Templeton Institute, offers some judicious perspectives on how to turn volatility into opportunity.
Wall Street Built a $370 Billion Business Cloning Quant Trades
Deep in the bowels of Wall Street, there’s a surprisingly successful counterfeiting operation underway: The world’s largest banks have created a booming business churning out imitation quant trades.
Mid-Quarter Update: Tightening Credit
Credit conditions are tightening in both Europe and the United States. Our analysis follows in our mid-quarter update, Tightening Credit.
Final Approach: May 2023 Economic Update
The U.S. economy is likely slowing down, and a recession seems likely in the 12-18 month time horizon.
When High Alpha Met Low Beta
An in-depth analysis of hedge fund performance demonstrates that, over the past 15 years, lower-beta hedge fund styles have generally achieved higher alpha, aligning with investors' objectives of maximizing returns and diversification.
Income Fund Update: Building Resilience and Harnessing Yield in High Quality Assets
Despite economic uncertainty, we see compelling value in high-quality, liquid assets that we view as more resilient in the face of a potential recession.
U.S. Economic Outlook, May 2023
The Northern Trust Economics team shares its outlook for U.S. growth, employment, interest rates, and inflation.
Connecting the Disinflation Dots in Multi-Asset Strategies
The Federal Reserve’s latest 0.25% interest-rate hike has likely capped one of its most aggressive policy-tightening cycles in 40 years. And the cumulative 5% policy rate increase in just over a year is now starting to have an effect on rate-sensitive sectors and inflation.