The past few decades presented an outstanding market environment for the asset management industry. Global AUM rose at a steady pace between 2001 and 2021, thanks largely to the strength of the world’s equity markets, which were able to rebound even after several severe downturns. And 2021 was even stronger. Global AUM grew at 12% last year, to more than $112 trillion, a growth rate well above the 7% average of the previous 20 years.
Last week, the Boston Consulting Group (BCG) released its 20th annual report on the global asset management industry, it offers a retrospective analysis of the effects of this strong market – and as the industry enters a more uncertain era, it looks at the expected impact of new technologies such as direct indexing, increasing investor demand for alternative products, and a focus on decarbonization.
Innovative ETFs
Crypto Stocks Show Why They’re Among the Riskiest of Risk Assets
Crypto curious stock investors are taking little comfort in the rebound in the shares of companies linked to the digital-asset world in the past week, with the sector underperforming just about every other risky corner of the financial markets this year by a wide margin.
A New “Pink Tide” in Latin America?
Latin America tilted further left this week as Colombian voters elected Gustavo Petro as president. Come August, the former Bogotá mayor and member of the M-19 guerrilla organization will join the region’s growing list of leftist leaders in a political shift some are likening to the “pink tide” of the late 1990s and early 2000s.
Inflation Reaches Unicorns
Interest rates aren’t simply the price of borrowing money. They are also information, providing signals telling economic players what to do. Interest rates are in fact the price of time. Low interest rates don’t value time very much. Bad signals produce bad outcomes… and that’s where we are now.
Remote Work Could Save Firms $206 Billion and Ease Pressure on the Fed
The rise of remote work could make the Federal Reserve’s task of taming inflation a bit easier, while saving employers more than $200 billion, according to new research.
How to Invest in China Responsibly
Investors in China can positively influence the behavior of Chinese companies and generate attractive risk-adjusted returns in the long run.
Night Moves: Is the Overnight Drift the Grandmother of All Market Anomalies?
If finance could be distilled into one idea, it likely would be that there should be a tradeoff between risk and reward: an investment with low risk should have a low expected return, while one that could make you rich should also be one that could lose you a lot of money. The Overnight Effect flies in the face of this core tenet.
A Realistic Framing of the Progress in Artificial Intelligence
Let’s face it—we love exciting announcements. Why talk about the small technical improvements of a given artificial intelligence (AI) system when you can prognosticate about the coming advent of artificial general intelligence (AGI)? However, focusing too much on AGI risks missing many incremental improvements in the space along the way.
Wall Street South Gets Biggest Win in Griffin’s Grand Miami Plan
Ken Griffin just set a new standard for Wall Street firms looking to make the move south.
Stocks Adding to Weekly Gains
U.S. stocks are extending weekly gains, rebounding from yesterday afternoon's slide as the markets remain choppy amid lingering global recession concerns that have been bolstered by monetary policy tightening efforts around the globe aimed at getting high inflation under control.
Stocks Sniffing A Bear Market Rally
A number of key technical, sentiment and flow based indicators are suggesting we could see a relief in selling pressure over the coming weeks, and perhaps a countertrend rally in risk assets.
Stocks Are Losing the Race With Bonds in Era of Tightening Fed
Bonds have been whispering in the ears of stock investors all year. Now they’re starting to shout.
Don’t Cry for the Most Wealthy
Over the last four years, we have argued that the glamour monopoly technology companies have a low multiplier effect in the U.S. economy
The Heart of a Tech Stack: Your CRM Software
The client relationship management (CRM) platform has become the beating heart we can’t live without.
Recession Calls Grow; Mnuchin on Inflation Threat: Qatar Update
Delegates at the second annual Qatar Economic Forum, from Tesla Chief Executive Officer Elon Musk and Nouriel Roubini to Atlas Merchant Capital’s Bob Diamond and StanChart’s Bill Winters, warned the US was heading toward a recession.
Crypto Crash Survivors Could Become Tomorrow’s Amazons, BOE Says
The survivors of the rout in cryptoassets could become the technology companies of the future rivaling Amazon.com Inc. and eBay Inc.
Inflation Ate Your Free Lunch, But You’re Still Better Off
Believe it or not, we live in the best of times. It’s been a crazy few decades, with a pandemic, rising inequality, slowing growth and productivity, and major changes in the economy.
Zero Harm Farming and Mining
Headquartered in Melbourne, Australia, Incitec Pivot is a global leader in the materials sector with an unrelenting focus on Zero Harm, the expectation that its operations should never expose staff to harm or cause environmental incidents.
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.
US Sanctions Help China Supercharge Its Chipmaking Industry
China’s chip industry is growing faster than anywhere else in the world, after US sanctions on local champions from Huawei Technologies Co. to Hikvision spurred appetite for home-grown components.
Governance For Global Trade
The world needs a stronger World Trade Organization.
How Venture Capital Thrives by Betting on Weirdness
Who would want to be tasked with investing their own and other people’s money in companies run by weirdos and jerks? But that turns out to be one of the most important skill sets shared by successful venture capitalists.
Credit Cards at 20%, Mortgages Near 6%: The Fed's Rate Hikes Are Already Having an Impact
US credit-card rates have soared past 20%, mortgage costs have climbed to the highest since 2008 and companies are having a harder time borrowing money.
Inflation Turns EVs Into Luxury Items, Threatening Broader Electric Shift
Electric-vehicle prices are going up at a dizzying pace these days.
Gold Has Been One of the Few Bright Spots in 2022 (So Far)
The yellow metal has managed to stay positive since the start of the year, skirting pressure from surging yields and a strong U.S. dollar. Meanwhile, nearly every other asset class has fallen into either correction or bear market territory.
Dr. Cole Cash and the Next Generation
The one speed bump advisors keep tripping over is that, well, people are funny about their money.
Cathie Wood’s ARKK Has Tumbled 61%, Yet Gets Another Copycat
An ETF issuer is following in Cathie Wood’s footsteps with a new innovation-themed fund, despite the fact that her flagship ETF tumbled 61% this year.
For All Their Worries, Investors Are Piling Into US Stocks
For all the talk of bear markets and a possible recession, investors continue to pile into American equities.
Number of Underwater Russell 3000 Stocks Surges to Record
The number of Russell 3000 companies, excluding financial firms, trading below cash has surpassed the month-end record set during the global financial crisis.
The Bear Is Here
We hit a milestone just recently, although it’s certainly not one we wanted to hit.
Tech Bear Market’s Latest Casualty Is Pandemic-Era Convertible Debt
The equity-linked debt of some of the pandemic’s darlings has plunged to record lows and is now considered distressed.
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.
ARKK Stocks Sunk
The better ARK performed, the more money flowed into its main ETF, ARKK. It used this money to buy more sci-fi ARKK stocks, pushing up the prices of its holdings. This created a vicious cycle that has now reversed.
The State of Sustainable Investing
Over the last year, we’ve experienced heightened macroeconomic uncertainty with several events impacting society and financial markets.
How Top Firms Use Technology to Leverage Growth
What are growth-oriented firms doing and how are they thinking differently about technology?
The Next Generation of Video Marketing
Here’s how financial marketers can repurpose virtual meetings and video content.
Empire State Mfg Survey: Activity Levels Off
This morning we got the latest Empire State Manufacturing Survey. The diffusion index for General Business Conditions at -1.2 was an increase of 10.4 from the previous month's -11.6. The Investing.com forecast was for a reading of 3.0.
The Future of Food is Technology
In our new piece from the Franklin Templeton Institute, we examine the challenge of feeding a growing global population in the midst of climate change, geopolitical shocks and uncertainty.
Big Tech’s Floor Collapses on Renewed Fears of Bigger Rate Hikes
The world’s biggest technology stocks are crumbling on Monday as broad markets enter into bear market territory amid fears the Federal Reserve will send the US economy into recession.
Tesla, MicroStrategy, Ark ETF Need to Capitulate Before Stocks Bottom
MicroStrategy Inc., ARK Innovation exchange-traded fund, Tesla Inc. and Twitter Inc. are what I’m watching to identify the ultimate capitulation point of this cycle.
Signs Point to Rising Recession Risk
Rising inflation, rate hikes, supply-chain problems and the Russia-Ukraine war have contributed to growing recession fears.
Is the Real Economy as Weak as Markets?
“This market has a 1929 like feeling....”
Red-Hot Lithium Boom Pits Wall Street Against the Wonks
There’s a fight brewing in the lithium market, after a controversial forecast from Goldman Sachs Group Inc. analysts set off a backlash among some of the industry’s most prominent experts.
Global Stock Rout Prompts Call for Back-to-Basics Investing
Traders unnerved by a selloff that hit stocks and bonds alike are looking for refuge, increasing the appeal of investments offering reliable returns such as shares that pay steady dividends.
Semiconductors: A Less Cyclical Future
The proliferation of semiconductors throughout our economy may drive more durable, less cyclical demand and earnings.
Mid-Cap and Small-Cap Dividends Shine amid Volatility
In our third of three posts on small-cap valuations, let’s examine how focusing on dividend payers amid a volatile market backdrop has provided excess returns, with even lower valuations.
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.
It’s Warren Buffett Versus Big Tech in Iowa’s Latest Wind-Farm Debate
Google, Facebook and Microsoft Corp. — three of the world’s biggest corporate buyers of clean power — are sounding the alarm that a nearly $4 billion, Warren Buffett-backed renewable-energy project proposed in Iowa isn’t necessarily in the best interest of customers, including them.
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.
The Current and Future State of Model Portfolios
This article is relevant to financial professionals who are considering offering model portfolios to their clients.
Druckenmiller Warns ‘Bear Market Has a Ways to Run’ as Fed Hikes Rates
Stanley Druckenmiller has a warning for Wall Street: The sharp decline in the stock market isn’t over just yet.
Wood Sees Huge Inventories as Evidence Inflation Will Ebb
Cathie Wood says the massive inventories now held by US companies suggest that inflation will die down.
As Meta Ditches FB Ticker, Investors Shun Metaverse
Wall Street is pounding the table on the next big thing in technology, predicting the metaverse could be a $13 trillion industry by the end of the decade.
Today's Options Market Update
Stocks modestly lower ahead of tomorrow’s inflation report.
Market Optimists Make the Case That 2022 Will End on High Note
As corporate leaders increase their grim pronouncements about the future, there are still market economists who see stocks heading higher in the second half of this year and who say the US could sidestep a recession.
Beware of a Bear Market That Is More Than a Cub
The US stock market is experiencing the worst start to a year in five decades.
Bull Market Rhymes
Howard Marks’s latest memo explores recurring investment themes to contextualize the current market correction and the bull market that preceded it. He discusses the role played by financial innovations like SPACs and cryptocurrencies and why he believes psychology, not fundamentals, primarily drives investment cycles – and likely always will.
Full-time and Part-time Employment: A Deeper Look
Let's take a closer look at last week's employment report numbers on Full and Part-Time Employment.
How to Smash the Competition Using Advice-Only Planning
The advisors who figure out how to work with Generation Z will take your wealthy Baby Boomer clients away. Stop rolling your eyes and listen to why.
Gundlach: Oil Could Hit $150 This Summer
The price of oil, as measured by the benchmark WTI index, could hit $150 this summer, according to Jeffrey Gundlach. That price may not be sustained, he said, “but the path of least resistance for oil prices is up.”
A Framework for Working with Foreign-Born Families in the U.S.
Using this five-question framework will go a long way to help you be effective as you work with foreign-born families in the U.S.
Schwab Market Update: Stocks Lower as Volatility Continues
U.S. equities are lower as the recent volatility continues despite yesterday's gains.
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 Overarching Themes in the Asset Management Industry
The past few decades presented an outstanding market environment for the asset management industry. Global AUM rose at a steady pace between 2001 and 2021, thanks largely to the strength of the world’s equity markets, which were able to rebound even after several severe downturns. And 2021 was even stronger. Global AUM grew at 12% last year, to more than $112 trillion, a growth rate well above the 7% average of the previous 20 years.
Last week, the Boston Consulting Group (BCG) released its 20th annual report on the global asset management industry, it offers a retrospective analysis of the effects of this strong market – and as the industry enters a more uncertain era, it looks at the expected impact of new technologies such as direct indexing, increasing investor demand for alternative products, and a focus on decarbonization.
What’s the Crypto Regulation Endgame?
Absent a crisis, stiffer regulation of cryptocurrencies could take many decades, especially given that major players are pouring huge sums into lobbying.
US Recession Is Avoidable If Fed Can ‘Thread the Needle’
While the danger of a downturn has risen as growth has slowed, most economists argue a contraction is unlikely in the immediate future, given the continued strength of the jobs market and the more than $2 trillion in excess cash on household balance sheets.
ESG Investing Is Heading for a Reckoning, Says One Veteran Manager
The ESG investment industry may be headed for a reckoning and many companies won’t survive this period of higher interest rates.
Consumers Are Losers in a Booming Industrial Economy
Reasons to worry about a recession are piling up: the Federal Reserve's inflation fight, a slowing housing market, warnings from retailers and venture capitalists and a smattering of layoff announcements.
Will Corporate Credits Crack as Growth Slows?
Investors are shifting their focus from runaway inflation to slowing global growth as central banks hike rates to tame price pressures.
Tour of the Global Equity Markets
We have a very precise methodology for dissecting the world’s equity markets.
Quality Growth Is Not Dead
Let me take a minute to introduce myself and my publication The FRED Report.
The Upside to Record High Gas Prices
It’s not all doom and gloom, though. Due to stratospheric oil and gas prices, energy stocks have been the one bright spot in an otherwise dour market this year. Through the end of May, the S&P Oil & Gas Exploration & Production Index gained an incredible 60%, compared to the S&P 500, which fell about 13%.
No Soft Landings
The chance that all the necessary pieces will line up that way? Somewhere between slim and none, and as my dad used to say, “Slim left town.” And while my memory isn’t perfect, I don’t believe any speaker at the conference believed in the possibility of a soft landing. And even if we get one, we have serious problems that predate this inflation. They haven’t gone anywhere.
Looking Back at the Markets in May and Ahead to June 2022
Markets stabilized in May after one of the worst months since the start of the pandemic.
May Markit Services PMI: Growth Continues
The May US Services Purchasing Managers' Index conducted by Markit came in at 53.4 percent, down slightly from the final April estimate of 55.6.
Bear Markets Signal Leadership Change
Bear markets always signal a leadership change within the overall equity market. The leadership going into a bear market is rarely, if ever, the leadership coming out. Because of this rule of thumb, we view bear markets as periods of extreme opportunity.
What Not to Do When a Financial Windfall Happens
What do you tell clients who suddenly find themselves receiving a large financial windfall?
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.
It’s a Market of Stocks Not a Stock Market
Welcome to another subscriber request where I will cover 42 stocks.
US Labor Market to Show Emerging Dichotomy of Tightness, Risks
The likely moderation of US job growth in coming months will reflect a combination of hiring challenges in a remarkably tight labor market, shifts in spending patterns and outright soft spots within a handful of industries.
Making Friends with Bears Through Math
A fascinating aspect of the financial markets is that long-term returns are driven almost entirely by math, while short-term returns are driven almost entirely by psychology.
These Are the Batteries We Need to Ease the Power Crunch
The world is struggling with simultaneous energy and climate crises. To solve the first could require undoing all the progress made toward greener power and cleaner air. But it doesn’t have to be that way.
The Next Stablecoin Collapse Could Be a Lot Worse
Thanks to the spectacular demise of TerraUSD, a cryptocurrency that promised to be always worth a dollar but was suddenly worth a lot less, the world is better acquainted with the term “stablecoin” — and aware of how unstable they can be.
Elon Musk's Demand Staffers Stop 'Phoning It in' May Cost Him Talent
Elon Musk’s demand that Tesla Inc. staff stop “phoning it in” and get back to the office has thrust the world’s richest person into the noisy debate over the future of work, and shows again that some CEOs remain tone-deaf to employees’ growing demands for flexibility.
Bear Stearns: A Lesson in Bear Market Bounces
The tale of Bear Stearns’ rally and investors' myopic vision in the spring of 2008 is a valuable lesson for today.
Markets Seek Direction, Hope For Soft Landing
Markets flailed in May, seeking certainty amid conflicting signals.
SEC Proposals for ESG Ignore 80 Years of Financial Science
The US Securities and Exchange Commission is concerned that retail investors are being duped by “greenwashing.”
Soros’s Money Manager Warns Recession ‘Inevitable’ But Market Timing Is Off
Despite the massive selloff in equities this year and persistently high inflation, Dawn Fitzpatrick isn’t worried about a recession in the immediate future.
These Investors Say Nasdaq’s Bear Market Has Legs
The drubbing global technology stocks have seen this year may be far from over.
Active Managers Are on a Winning Streak. That Won’t Last.
Stock pickers are beating the market in unusually large numbers this year, raising the age-old question about whether their success can be attributed more to luck or skill.
The Danger Posed by Cryptocurrency Regulation
The executive order signed by President Biden in March is clearly the first of several steps that will bring the IRS and regulators closer to your crypto wallet.