Investors are still recovering from the municipal market beatdown of 2022, but the current higher absolute yield levels provide an attractive “re-entry” point for municipal market investors.
Successful investment management can be Impaired by perverse incentives, which are what now plagues value funds.
A common mistake that investors make regarding dividend portfolio construction is not having a well-thought-out plan.
We believe it is important to keep you informed on the latest proposals and regulations impacting the retirement industry, as well as implications to your business.
This article explores how the addition of specific liquid alternative strategies produces an “All-Terrain” portfolio with the potential for improved long-term performance across a wider range of market environments.
You read that right. The Fed wants lower stock prices.
At KCR, we believe in the Quantamental Investment approach–a strategy that leverages the most useful aspects of both quantitative investing and fundamental investing.
Gold prices have increased to start 2023 as the dollar index extends last Friday's losses.
Commodities may seem like just another one of the bunch, but these products offer a unique way to invest your money in the market.
Build your ladder with multiple target-maturity ETFs representing different segments of the bond market, with different target years.
Public and private real estate investments present a compelling opportunity in the current environment of high inflation and rising interest rates, according to Daniel Scher and Blair Schmicker from Franklin Equity Group.
Let's examine the three paths the Fed might take in 2023 and what they mean for stock prices.
An OCIO can deliver vastly expanded investment capabilities while seamlessly alleviating the burden of investment infrastructure, operations back-office, and administrative tasks, freeing up advisors’ time for vital client-facing and relationship-building activities.
Valid until the market close on January 31, 2023.
The S&P 500 closed December with a monthly loss of 5.9% after a gain of 5.4% in November. At this point, after close on the last day of the month, four of five S&P 500 strategies are signaling "cash" — iShares Barclays 7-10 Year Treasury (IEF), Vanguard REIT Index ETF (VNQ), Vanguard Total Stock Market ETF (VTI), and Invesco DB Commodity Index Tracking (DBC) — down from from last month's quintuple "cash" signal.
The February crude oil contract CLG23 was down over 2% in trading early Thursday.
Bear markets end with widespread capitulation while a chorus of the stock trader’s prayer (God, if you get me out of this mess, I swear I will never buy another stock) spreads through out the land.
The market dislocations and skyrocketing inflation of the last year put longstanding retirement maxims to the test and that test isn’t over yet.
Putting 60% of a portfolio in stocks and 40% in bonds is supposed to hedge against both assets dropping simultaneously. But it didn’t pan out that way in 2022.
The Fed’s repeated manipulation of the price of capital has weakened productivity growth and reduced economic activity. Ultimately it is the citizens that pay the price.
As investors increasingly seek out more personalized options, many advisors are seeing direct indexing grow in popularity. Direct indexing is a type of separately managed account or SMA, where investors can express their personal values and tax preferences. The personalization and flexibility afforded by an SMA allows advisors the flexibility to manage each client’s tax situation and reflect their values. Dimensional Fund Advisors recently conducted research into the tax management benefits of an SMA. It found that a multifaceted tax management approach that goes beyond tax loss harvesting and considers tax implications at every step of the investing process can lead to more significant, longer-term gains. Here from Dimensional to discuss further is Kaitlin Hendrix, senior researcher and vice president.
Here’s a breakdown of the pros and cons of trading in your traditional bank for a virtual banking experience.
This fall was a memorable time in the Halverson household.
The Federal Reserve raised interest rates by a half point (50 basis points) on Wednesday in line with forecasts.
In part 1 I covered a model portfolio that was built on August 24, 2021, with the primary objective of generating a higher level of current income safely.
The financial foghorn is blowing. Historical odds greatly favor a recession, stock market drawdown, and a much lower Fed funds rate.
Starting in 2012, it became more and more difficult for prudent dividend growth stock investors looking for income.
One thing to consider when opening a 529 plan is whether it should be a custodial or individual account. While both allow you to save for college costs and enjoy some tax breaks, they differ in terms of who has control of the account and the assets in it.
We’ve broken down nine of the best 529 plans.
Here are four questions independent financial advisors should ask before choosing a TAMP.
Equity investors are not being adequately compensated for the economic, geopolitical and financial risks they are bearing. The equity risk premium is too small.
Let’s look at the powerful feature set an advisory firm could put together from a collection of the higher-rated, low-market-share programs and solutions that I’ve collected from past surveys, many of which you may not even be aware of.
Whether foreign nations want or need tightening or easing, they are stuck with the monetary policy that the Fed decides America needs.
Our annual ESG manager survey of active managers assesses the integration of ESG considerations in investment processes among equity, fixed income and private markets managers, and spotlights firmwide policies, use of data, engagement and integration.
Although off their Thursday lows, equity index prices closed lower yesterday.
To foresee what crisis might be next, it is vital to understand the dollar's role in global finance and economics and the resulting role that the Fed plays in influencing global monetary policy.
There is a long history that proves ESG’s viability and more than 2,000 empirical studies that show little absolute difference in performance by adopting it as a criterion for analysis.
What are the implications of strategic asset allocation, the dynamics of public and private credit, tech-driven megatrends, and more?
About 90% of this year’s S&P 500 loss was attributable to higher interest rates.
On Thursday, October 21 stock plunged following a sharp rise in consumer prices.
Russ Koesterich, CFA, JD, Managing Director and Portfolio Manager, of the Global Allocation team discusses whether markets have bottomed or not.
Quality investing is an approach well suited to small cap equity.
The advisors who are listening to this podcast will start a financial-planning process with a risk assessment for a client. That exercise will evaluate how much volatility the client can tolerate. It will serve as input to constructing a portfolio that optimizes returns given a client’s risk tolerance.
My guest today is here to explain why that is the wrong approach. The problem is not to minimize volatility, he says, but to figure out how money a client needs, when they need it, and to solve for that problem.
Depending on where they live, student borrowers may soon face an unexpected tax burden.
Bond yields may keep rising, but a significant driver of yields is done selling.
Despite crypto markets being one of the hardest hit throughout the bear market that has engulfed almost all risk assets over the past 12 months, we have seen crypto not only hold up relatively well since the June lows but indeed be one of the better performing asset classes.
I look back to other periods when bonds outperformed stocks. This analysis allows us to assess specific stock traits and specific industries that over- and underperformed in those eras.
Sandpiles can be fun. Nothing beats taking kids to the beach (or being a kid!) and watching their creativity blossom into all kinds of magical shapes. The problem with sand construction is it doesn’t last. I have it on good authority that building your house on the sand probably won’t end well.
With Treasury yields around 4% and corporate bonds yields even higher, fixed income is the better alternative to stocks.
The world seems an increasingly uncomfortable place for traditional stock and bond investments.
If one is watching CNBC to figure out where markets are headed, they will be better served looking to the bond market for direction.
One investment with the ability to provide current income, inflation protection, and even the potential for capital appreciation has been largely overlooked – rising dividend stocks.
In the 1980s there was a famous TV ad for Wendy’s with the tagline “Where’s the beef?”.
In the long run, stock prices and returns are anchored by the cash flows that companies provide investors. If profits grow slower than expected, stock return projections must be recalibrated.
Bleeding into this week, the British pound reached its lowest level ever Monday, relative to the U.S. dollar.
While 2022 has been a challenging year for nearly every segment of the capital markets, it comes with a silver lining for income investors: higher yields.
Balancing acts. As the Fed walks the line between curbing inflation and averting recession, anxious investors are seeking to balance the two risks. Amid the uncertainty, we believe stock selection matters more.
The leading tail-risk potential is the increased odds that high inflation remains stubborn, and the Fed continues to fight those odds aggressively.
How can we design and deliver our advice in a way that clients implement it? Enter the commitment device.
This week, Advisor Perspectives is set to host a variety of free CE webinars for financial professionals. These webinars will cover a variety of topics that are intended to help advisors gain valuable insight and education, allowing them to better meet their clients’ needs.
When the supply and demand for bonds normalize, bond investors will realize that economic, inflation and other factors warrant much lower yields.
Silver rallied to start the week as all contract months were up four percent or more.
Investor risk tolerance drives portfolio decisions, yet many financial advisors are rightly concerned about the accuracy of risk tolerance assessments. Why is it so hard? How can we get it right?
Investors increasingly want more control and customization of their portfolios. Personalized managed accounts give them the opportunity to do that.
As one of us points out relentlessly, risk isn’t a number, rather it is a notion or a concept.
I explore consumer staple and discretionary companies to see how they are navigating the inflation storm.
Federal Reserve Chair Jerome Powell’s hawkish comments dominated the markets on Friday, with the major indices all seeing a drop of over 3%.
With the recent increases in interest rates, the carry trade has had a sudden resurgence in performance, which could make it a tempting strategy for investors.
This article considers a change in behavior that would generate a price-wage spiral.
Equity markets plunged to start the week based on increased FOMC pressure to raise rates to combat inflation.
Our own government cannot afford a short end of the curve much higher than it is now, and our own fiscal and monetary decisions have held down the long end of the curve in what I believe is a multi-decade period ahead that is best referred to as “Japanification”
The S&P 500 could be close to 3,500 by year-end if the Fed follows through with its QT plans.
Crude oil prices dropped substantially to start the week after the dollar rallied.
Let’s talk about something few people have any interest in talking about this year.
Stocks are rallying on hopes the Fed will stop increasing interest rates this fall, pivot, and start reducing them next year. Investors are blindly buying into this pivot narrative.
When it comes to a comfortable retirement, women in the US have the cards stacked against them.
Successful investing in Emerging Markets is inextricably linked to a deep understanding of Environmental, Social and Governance (ESG) factors.
How do you know what your clients are thinking in real time, as the markets jump around unpredictably, as clients go through life changes which are largely invisible to their advisor unless the clients proactively contact them?
According to MPT, following certain steps leads to the optimal portfolio for the individual’s risk and return preferences. But, like executing a perfect squat, knowing how to build the optimal portfolio is not enough.
Russ Koesterich, Managing Director and Portfolio Manager, of the Global Allocation team explains why investors should expand their definition of quality in today’s market environment.
Given the Fed's enormous impact on markets and its extremely hawkish stance due to inflation, a well-reasoned inflation forecast is imperative for investors.
The long-running active versus passive debate has become even more heated than usual during the recent stock market turmoil.
The U.S. has experienced another quarter of reduced output, in the face of high inflation and rising interest rates.
The market’s inflation concerns are taking a back seat to recession fears.
Given the stock market turmoil, a timely question is whether the U.S. Federal Reserve (the “Fed”) will act to stem the tide of losses as it has done during prior stock market declines. A bloated Fed balance sheet and historically high inflation suggest that this time the Fed will be unable to act to save the market.
For decades, globalization has been on an inexorable rise, a key pillar fueling economic growth, driving inflation and yields down, bolstering corporate profit margins and supporting an upward climb in market valuations. Over the past few years, though, cracks have started to develop in globalization, as populism has seen a resurgence and trade wars have erupted.
Investors can choose one of two popular scaling methods for carbon emissions comparisons across companies. Our analysis guides investors in making this important decision.
Valuations help investors gauge the downside risk and upside potential in a stock or market. At the same time, assessing liquidity conditions, including technical analysis, defining short term trends help with investment timing and asset selection.
While the situations in the U.S., Europe, and Japan are different, all three are paying the price for years of fiscal and monetary tomfoolery. Using monetary policy to ensure low-interest rates encouraged unproductive debt growth. As liabilities grew faster than GDP, their ability to service debt became harder without continually having to administer lower interest rates and more QE.
Commodities can make for great trades, but they are often lousy investments.
The decision to annuitize at age 65 may be optimal in instances of extreme longevity (age 90-95+) or if there is a prolonged environment for stocks and bonds that is as bad or worse than any conditions experienced in the historical record.
Separately Managed Accounts
Municipal Bonds: Is it Safe to Get Back in the Water?
Investors are still recovering from the municipal market beatdown of 2022, but the current higher absolute yield levels provide an attractive “re-entry” point for municipal market investors.
The Perversion Afflicting Value Investors
Successful investment management can be Impaired by perverse incentives, which are what now plagues value funds.
Constructing a Dividend Growth Stock Portfolio for Total Return
A common mistake that investors make regarding dividend portfolio construction is not having a well-thought-out plan.
US Retirement Legislation and Regulation Bulletin: Fourth Quarter 2022
We believe it is important to keep you informed on the latest proposals and regulations impacting the retirement industry, as well as implications to your business.
From All-Weather to All-Terrain Investing for the Stormy Decade Ahead
This article explores how the addition of specific liquid alternative strategies produces an “All-Terrain” portfolio with the potential for improved long-term performance across a wider range of market environments.
The Fed Wants Lower Stock Prices
You read that right. The Fed wants lower stock prices.
Quantamental Investing: A Brief Primer on KCR’s Toolkits
At KCR, we believe in the Quantamental Investment approach–a strategy that leverages the most useful aspects of both quantitative investing and fundamental investing.
Gold Rallies on a Weaker Dollar
Gold prices have increased to start 2023 as the dollar index extends last Friday's losses.
A Primer for Clients to Invest in Commodities
Commodities may seem like just another one of the bunch, but these products offer a unique way to invest your money in the market.
How to Build a Bond Ladder Using ETFs
Build your ladder with multiple target-maturity ETFs representing different segments of the bond market, with different target years.
Alternative Investments: The Case for Real Estate
Public and private real estate investments present a compelling opportunity in the current environment of high inflation and rising interest rates, according to Daniel Scher and Blair Schmicker from Franklin Equity Group.
Three Paths for 2023
Let's examine the three paths the Fed might take in 2023 and what they mean for stock prices.
Rethinking the Traditional OCIO Model: A Guide for RIAs
An OCIO can deliver vastly expanded investment capabilities while seamlessly alleviating the burden of investment infrastructure, operations back-office, and administrative tasks, freeing up advisors’ time for vital client-facing and relationship-building activities.
Moving Averages: S&P Down 5.9% in December, Down 19.4% in 2022
Valid until the market close on January 31, 2023.
The S&P 500 closed December with a monthly loss of 5.9% after a gain of 5.4% in November. At this point, after close on the last day of the month, four of five S&P 500 strategies are signaling "cash" — iShares Barclays 7-10 Year Treasury (IEF), Vanguard REIT Index ETF (VNQ), Vanguard Total Stock Market ETF (VTI), and Invesco DB Commodity Index Tracking (DBC) — down from from last month's quintuple "cash" signal.
Crude Oil Slumps on Travel Concerns, Forecasted Production Increases
The February crude oil contract CLG23 was down over 2% in trading early Thursday.
The 70% Solution
Bear markets end with widespread capitulation while a chorus of the stock trader’s prayer (God, if you get me out of this mess, I swear I will never buy another stock) spreads through out the land.
Reflecting Back on a Testing Year and Looking Ahead to 2023
The market dislocations and skyrocketing inflation of the last year put longstanding retirement maxims to the test and that test isn’t over yet.
Will the 60/40 Portfolio Stage a Comeback in 2023?
Putting 60% of a portfolio in stocks and 40% in bonds is supposed to hedge against both assets dropping simultaneously. But it didn’t pan out that way in 2022.
The Federal Reserve is Killing Capitalism
The Fed’s repeated manipulation of the price of capital has weakened productivity growth and reduced economic activity. Ultimately it is the citizens that pay the price.
New Research on Tax-Advantaged Direct Indexing
As investors increasingly seek out more personalized options, many advisors are seeing direct indexing grow in popularity. Direct indexing is a type of separately managed account or SMA, where investors can express their personal values and tax preferences. The personalization and flexibility afforded by an SMA allows advisors the flexibility to manage each client’s tax situation and reflect their values. Dimensional Fund Advisors recently conducted research into the tax management benefits of an SMA. It found that a multifaceted tax management approach that goes beyond tax loss harvesting and considers tax implications at every step of the investing process can lead to more significant, longer-term gains. Here from Dimensional to discuss further is Kaitlin Hendrix, senior researcher and vice president.
Online Banks versus Traditional Banks: Which Is Best for Your Clients?
Here’s a breakdown of the pros and cons of trading in your traditional bank for a virtual banking experience.
Here’s How Advisors Can Help Make Dreams Come True
This fall was a memorable time in the Halverson household.
FOMC Slows Rate Hikes as Expected
The Federal Reserve raised interest rates by a half point (50 basis points) on Wednesday in line with forecasts.
20 Dividend Growth Stocks For Faster Growth And Profit (Part 2 of 3)
In part 1 I covered a model portfolio that was built on August 24, 2021, with the primary objective of generating a higher level of current income safely.
Don’t Ignore What the Yield Curve is Telling Investors
The financial foghorn is blowing. Historical odds greatly favor a recession, stock market drawdown, and a much lower Fed funds rate.
Finding 20 Dividend Growth Stocks In A Bad Market
Starting in 2012, it became more and more difficult for prudent dividend growth stock investors looking for income.
529 Plans: Custodial versus Individual
One thing to consider when opening a 529 plan is whether it should be a custodial or individual account. While both allow you to save for college costs and enjoy some tax breaks, they differ in terms of who has control of the account and the assets in it.
The Best 529 Plans for 2023 and Beyond
We’ve broken down nine of the best 529 plans.
Four Questions to Ask Before Selecting a TAMP
Here are four questions independent financial advisors should ask before choosing a TAMP.
Equity Investors Aren’t Being Paid for the Risks They Take
Equity investors are not being adequately compensated for the economic, geopolitical and financial risks they are bearing. The equity risk premium is too small.
The Alternative Tech Stack
Let’s look at the powerful feature set an advisory firm could put together from a collection of the higher-rated, low-market-share programs and solutions that I’ve collected from past surveys, many of which you may not even be aware of.
The Fed is Exporting Global Inflation - Part II
Whether foreign nations want or need tightening or easing, they are stuck with the monetary policy that the Fed decides America needs.
2022 Annual ESG Survey: The ESG Journey Accelerates
Our annual ESG manager survey of active managers assesses the integration of ESG considerations in investment processes among equity, fixed income and private markets managers, and spotlights firmwide policies, use of data, engagement and integration.
Equities Move on Fed Commentary
Although off their Thursday lows, equity index prices closed lower yesterday.
The Dollar is the World's Problem (Part 1)
To foresee what crisis might be next, it is vital to understand the dollar's role in global finance and economics and the resulting role that the Fed plays in influencing global monetary policy.
Let ESG Client Returns Speak for Themselves
There is a long history that proves ESG’s viability and more than 2,000 empirical studies that show little absolute difference in performance by adopting it as a criterion for analysis.
The Search for Hidden Opportunities
What are the implications of strategic asset allocation, the dynamics of public and private credit, tech-driven megatrends, and more?
Interest Rates Explain This Year’s Stock Price Declines
About 90% of this year’s S&P 500 loss was attributable to higher interest rates.
Bear Market – Interrupted
On Thursday, October 21 stock plunged following a sharp rise in consumer prices.
Finding the Market Bottom: Why It’s a Process, Not a Moment
Russ Koesterich, CFA, JD, Managing Director and Portfolio Manager, of the Global Allocation team discusses whether markets have bottomed or not.
Quality Time in Small Cap
Quality investing is an approach well suited to small cap equity.
Nebo - GMO’s New Asset Management Platform
The advisors who are listening to this podcast will start a financial-planning process with a risk assessment for a client. That exercise will evaluate how much volatility the client can tolerate. It will serve as input to constructing a portfolio that optimizes returns given a client’s risk tolerance.
My guest today is here to explain why that is the wrong approach. The problem is not to minimize volatility, he says, but to figure out how money a client needs, when they need it, and to solve for that problem.
Student Loan Forgiveness May Hit You With a Heavy Tax Bill
Depending on where they live, student borrowers may soon face an unexpected tax burden.
The Hidden Force that Will Drive Yields Lower
Bond yields may keep rising, but a significant driver of yields is done selling.
Crypto Outlook: More Bearish Than Bullish
Despite crypto markets being one of the hardest hit throughout the bear market that has engulfed almost all risk assets over the past 12 months, we have seen crypto not only hold up relatively well since the June lows but indeed be one of the better performing asset classes.
Stock Picking in a Bond-Friendly Environment
I look back to other periods when bonds outperformed stocks. This analysis allows us to assess specific stock traits and specific industries that over- and underperformed in those eras.
Pension Sandpile
Sandpiles can be fun. Nothing beats taking kids to the beach (or being a kid!) and watching their creativity blossom into all kinds of magical shapes. The problem with sand construction is it doesn’t last. I have it on good authority that building your house on the sand probably won’t end well.
Bonds are the Better Alternative
With Treasury yields around 4% and corporate bonds yields even higher, fixed income is the better alternative to stocks.
Value Vs. Growth: The Unwind Continues
The world seems an increasingly uncomfortable place for traditional stock and bond investments.
Turn off CNBC and Watch Real Yields
If one is watching CNBC to figure out where markets are headed, they will be better served looking to the bond market for direction.
A Case for Direct Indexing Using Rising Dividend Stocks
One investment with the ability to provide current income, inflation protection, and even the potential for capital appreciation has been largely overlooked – rising dividend stocks.
Where’s the Beef?
In the 1980s there was a famous TV ad for Wendy’s with the tagline “Where’s the beef?”.
Corporate Profit Growth Will Slow
In the long run, stock prices and returns are anchored by the cash flows that companies provide investors. If profits grow slower than expected, stock return projections must be recalibrated.
The Plunging Pound
Bleeding into this week, the British pound reached its lowest level ever Monday, relative to the U.S. dollar.
Tackling the Income Problem
While 2022 has been a challenging year for nearly every segment of the capital markets, it comes with a silver lining for income investors: higher yields.
Taking Stock: Q4 2022 Equity Market Outlook
Balancing acts. As the Fed walks the line between curbing inflation and averting recession, anxious investors are seeking to balance the two risks. Amid the uncertainty, we believe stock selection matters more.
The Tail Risk of Persistent Inflation
The leading tail-risk potential is the increased odds that high inflation remains stubborn, and the Fed continues to fight those odds aggressively.
A Toolkit for Improving Client Behavior
How can we design and deliver our advice in a way that clients implement it? Enter the commitment device.
Upcoming Free CE Webinars Hosted by Advisor Perspectives
This week, Advisor Perspectives is set to host a variety of free CE webinars for financial professionals. These webinars will cover a variety of topics that are intended to help advisors gain valuable insight and education, allowing them to better meet their clients’ needs.
Bond Yields are Defying Yesterday’s Logic
When the supply and demand for bonds normalize, bond investors will realize that economic, inflation and other factors warrant much lower yields.
Silver Up, Then Down
Silver rallied to start the week as all contract months were up four percent or more.
Building the Ultimate Risk Tolerance Assessment
Investor risk tolerance drives portfolio decisions, yet many financial advisors are rightly concerned about the accuracy of risk tolerance assessments. Why is it so hard? How can we get it right?
Personalized Managed Accounts: The Next Level of Customization in SMAs
Investors increasingly want more control and customization of their portfolios. Personalized managed accounts give them the opportunity to do that.
Investing For Retirement III: Understanding And Dealing With Sequence Risk
As one of us points out relentlessly, risk isn’t a number, rather it is a notion or a concept.
Inflation's Winners and Losers
I explore consumer staple and discretionary companies to see how they are navigating the inflation storm.
Powell Pivot
Federal Reserve Chair Jerome Powell’s hawkish comments dominated the markets on Friday, with the major indices all seeing a drop of over 3%.
Let’s Not Get Carried Away
With the recent increases in interest rates, the carry trade has had a sudden resurgence in performance, which could make it a tempting strategy for investors.
Deglobalization and Central Banking
This article considers a change in behavior that would generate a price-wage spiral.
Hedging
Equity markets plunged to start the week based on increased FOMC pressure to raise rates to combat inflation.
Muddling Through Stagflation
Our own government cannot afford a short end of the curve much higher than it is now, and our own fiscal and monetary decisions have held down the long end of the curve in what I believe is a multi-decade period ahead that is best referred to as “Japanification”
S&P 3,500 By Year End
The S&P 500 could be close to 3,500 by year-end if the Fed follows through with its QT plans.
Crude Oil Unable to Rebound
Crude oil prices dropped substantially to start the week after the dollar rallied.
Be Greedy when Others Are Fearful
Let’s talk about something few people have any interest in talking about this year.
Don't Count on a Fed Pivot
Stocks are rallying on hopes the Fed will stop increasing interest rates this fall, pivot, and start reducing them next year. Investors are blindly buying into this pivot narrative.
Wall Street Is Failing Women in Retirement
When it comes to a comfortable retirement, women in the US have the cards stacked against them.
The Reality of ESG Integration in Emerging Markets Equity
Successful investing in Emerging Markets is inextricably linked to a deep understanding of Environmental, Social and Governance (ESG) factors.
A New Tool that Anticipates Client Concerns and Defections
How do you know what your clients are thinking in real time, as the markets jump around unpredictably, as clients go through life changes which are largely invisible to their advisor unless the clients proactively contact them?
The Perfect Squat
According to MPT, following certain steps leads to the optimal portfolio for the individual’s risk and return preferences. But, like executing a perfect squat, knowing how to build the optimal portfolio is not enough.
Where to Find Pricing Power
Russ Koesterich, Managing Director and Portfolio Manager, of the Global Allocation team explains why investors should expand their definition of quality in today’s market environment.
Your Portfolio Hinges on a Bet on Inflation
Given the Fed's enormous impact on markets and its extremely hawkish stance due to inflation, a well-reasoned inflation forecast is imperative for investors.
Active Versus Passive: Market Pros Weigh In on the Best Strategy for Retail Investors
The long-running active versus passive debate has become even more heated than usual during the recent stock market turmoil.
Looking to the Futures: GDP Declines for a Second Straight Quarter
The U.S. has experienced another quarter of reduced output, in the face of high inflation and rising interest rates.
Is Inflation or Recession Driving the Market?
The market’s inflation concerns are taking a back seat to recession fears.
Is the Fed Put Kaput?
Given the stock market turmoil, a timely question is whether the U.S. Federal Reserve (the “Fed”) will act to stem the tide of losses as it has done during prior stock market declines. A bloated Fed balance sheet and historically high inflation suggest that this time the Fed will be unable to act to save the market.
Deglobalization and the Future of Portfolio Construction
For decades, globalization has been on an inexorable rise, a key pillar fueling economic growth, driving inflation and yields down, bolstering corporate profit margins and supporting an upward climb in market valuations. Over the past few years, though, cracks have started to develop in globalization, as populism has seen a resurgence and trade wars have erupted.
Carbon Intensity for Climate Mitigation: Clearing Up “Scaling” Confusion
Investors can choose one of two popular scaling methods for carbon emissions comparisons across companies. Our analysis guides investors in making this important decision.
The Ominous Signs from Liquidity and Valuations
Valuations help investors gauge the downside risk and upside potential in a stock or market. At the same time, assessing liquidity conditions, including technical analysis, defining short term trends help with investment timing and asset selection.
The Trolley Car Problem – Part Two: Japan and Europe
While the situations in the U.S., Europe, and Japan are different, all three are paying the price for years of fiscal and monetary tomfoolery. Using monetary policy to ensure low-interest rates encouraged unproductive debt growth. As liabilities grew faster than GDP, their ability to service debt became harder without continually having to administer lower interest rates and more QE.
Commodities Never Belonged in Your Portfolio
Commodities can make for great trades, but they are often lousy investments.
Should Consumers Annuitize at Normal Retirement Age?
The decision to annuitize at age 65 may be optimal in instances of extreme longevity (age 90-95+) or if there is a prolonged environment for stocks and bonds that is as bad or worse than any conditions experienced in the historical record.