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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.

While agency mortgage-backed securities offer compelling valuations, not every mortgage is created equally.

The last two years brought challenges for investors across all walks of life, but particularly for retirees.

Last week, the Federal Reserve made a significant move by cutting its overnight lending rate by 50 basis points. This marks the first rate cut since 2020, signaling the Fed is aggressively supporting the economy amid a backdrop of softening economic data. For investors, understanding how similar rate cuts have historically impacted markets and which sectors tend to benefit is key to navigating the months ahead.

I attended and spoke at the European Blockchain Convention this week in Barcelona, where the energy around digital assets, Bitcoin and Web3 was palpable. Among the 6,000 attendees, there was a sense that we’re on the brink of a new era in finance and digital infrastructure.

Portfolio Manager Andrew Mattock, CFA, assesses the key components of the growth measures announced by the central bank and financial regulators in terms of their potential impact on the economy and the Chinese equity market.

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

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.

High-dividend-yielding equity investments are likely to get closer looks in the fourth quarter after strong recent performance.

Following the first half of 2024, the NDX succumbed to significant selling pressure as investors fretted about AI-related tech spending.

Chief Investment Officer Sean Taylor provides his insights on how the Fed’s 50 basis point-rate cut may affect emerging economies, particularly in Asia and Latin America, how it impacts portfolio allocations and the sectors he believes are poised for growth amid this shift.

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.

The next president will face a difficult fiscal context.

In the span of a few days in late July, the market got live to two contrasting theories at once: that U.S. inflation is collapsing while Japanese inflation will remain stubbornly high.

Fixed income strategy and opportunities have remained relatively unchanged over the past few months. However, the much-talked-about monetary policy change has commenced.

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.

Historically, investors have struggled to add meaningful alpha through security selection. A dynamic new credit scoring approach could change that.

Fixed income investors may want to take a middle-ground approach with bonds and opt for debt with intermediate maturity dates.

With their unrivaled depth and breadth, US capital markets lend themselves well to multi-asset strategies. The US equity market is a key portfolio building block and has outpaced the stock markets of other developed markets over the past decade.

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?

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.

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.

While it seems fitting that rates are beginning to fall within days of the Autumnal Equinox, I doubt Fed officials were aiming for the play on words. So, what were they paying attention to as they made this most recent decision?

Corporate tax rate policy is a routine hot-button issue during every presidential election cycle, and this year’s campaign is no different.

In 2021, the stock/bond correlation flipped to positive after remaining negative for a majority of the preceding 20 years.

Since mid-2022, when the Federal Reserve was in the midst of its aggressive hiking cycle, investors piled over $1.6 trillion into money market funds, which include Treasury bills.

The impressive arc of AI stock growth has been something to behold. Touring Silicon Valley and meeting with AI and tech company leaders offers another level of inspiration and insight on the market juggernaut. Active equity investor Tony Kim shared the experience and his broader AI investment outlook with The Bid podcast.

I’m moving up a letter I was planning to share with you on my birthday weekend in two weeks. The story about sandpiles and the financial system may be the most popular letter I’ve written in the last 25 years. It is one we should all re-read every few years to remind us how change happens slowly, then suddenly.

As GMO celebrates its 30th anniversary managing emerging debt this year, we offer our comprehensive guide to emerging debt markets. Given the tumultuous recent events – a global pandemic, defaults, repricing of interest rates, relentless strength in the U.S. dollar – we’ll focus on the Why as a starting point. Then we’ll dive into the proliferating How, covering strategies and vehicles.

From "how" to "why now," here are four things investors should understand about bond investing.

Despite forthcoming volatility, it's an ideal time to get municipal debt exposure, especially in the current market environment.

Trend-following is an exercise in technical analysis, systematic rules following, and signals reading that’s objective and agnostic.

Now that the Fed has begun the rate-cut cycle, investors can use option income ETFs to provide long-term income and risk protection.

With the decision on Wednesday to lower interest rates (for the first time since March of 2020) by a substantial 50 basis points (bps), rather than the 25 bps cut we typically see at the beginning of an easing cycle, the Fed is showing confidence that the disinflation trend will continue.

What history can tell us about seasonal returns.

We believe the Fed is on a path to continue to cut rates over the next several meetings to realign monetary policy with a now more “normal” U.S. economy.

Conference season brings about its own set of volatility catalysts. Portfolio managers and traders must keep their ears out for clues on the state of the broad economy, specific industries, and individual companies.

MSCI boosted India’s weighting in the MSCI Emerging Markets Index and reduced China’s in its latest quarterly rebalance, continuing long-term trends.

Doug Drabik discusses fixed income market conditions and offers insight for bond investors.

While the beach version of SoCal has had an epic, non-marine layer summer, it seems to have been enjoyed by few locals who instead violate the cardinal rule of adult life without children living at home and nevertheless travel to Europe in summer. We haven’t missed you.

Many investors understandably are wondering where Japan’s equity markets are heading. The market had a good year through June. After that it changed. The Bank of Japan's hawkishly delivered interest rate increase on July 31 preceded the release of weak U.S. economic data.

With the Fed nearing its first interest rate cut since 2020, enthusiasm for fixed income assets is increasing. Enter the ALPS Intermediate Municipal Bond ETF.

The last five years have bombarded investors with a seemingly never-ending array of challenges. Yet despite all these obstacles the S&P 500 is up almost 90% as of this writing.

With attractive valuations, emerging market equities look like a good opportunity. A factor investing strategy, designed well, may enhance performance and help manage some key risks.

Panic is never a good investment strategy—nor is greed. Here's how disciplined investing helps navigate through volatile environments.

The August jobs report highlighted a critical reality: the labor market is cooling off. While the headline figures seemed decent, the underlying data reveals clear warning signs that worker demand is slowing.

The yield curve measures the difference between short-term, intermediate-term, and long-term Treasury yields.