Asset Allocation

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.

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.

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.

Improved value proposition in credit.

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.

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.

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.

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.

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.”

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.

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.

Review the latest Weekly Headings by CIO Larry Adam.

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.

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.

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.