Specialty Investments

In this article, Russ Koesterich discusses gold may continue to serve as a store of value in the current environment.

In the wake of pandemic shocks, economies appear more “normal” than at any time since 2019. Yet policy rates remain elevated.

In theory, growing a pool of wealth over decades – whether for a family, an endowment, or a pensioner – is a straightforward endeavor.

In this article, Russ Koesterich discusses why the next bout of market volatility may last a bit longer than previous downturns and how to best position your portfolio against this backdrop.

An analysis of the leadership reversal and market sell-off observed in recent weeks and why an emphasis on equities with consistent fundamentals is justified.

The concept of portable alpha is over 40 years old. And while it has evolved through various forms over that time, it continues to be a valuable portfolio tool for institutional investors. Arguably, the most popular iteration right now is adding alpha expected from hedge funds on top of synthetic beta exposure.

High interest rates have had the predictable effect of restraining the performances of dividend stocks and related exchange traded funds.

As more Chinese companies get comfortable paying dividends, investors may find new sources of equity return potential.

Many recent studies have been done on the economics of different generations. Researchers want to know if Millennials and Gen Z are in fact worse off than their Boomer and Gen X parents. There are quite a few ways to look at this data.

Will 2030 DC plans perform better at preparing U.S. workers for retirement?

Amid expectations of rate cuts from major central banks, managers are increasing their exposure to more cyclical and value-oriented names, including autos, transportation, and short-cycle industrials.

High interest rates – the condition investors have had to contend with for over two years now – can be a drag on dividend stocks and ETFs.

In this article, Russ Koesterich discusses factors behind gold’s impressive performance year to date.

The US Department of Labor (DOL) offers eight tips for advisors to use to review target-date funds. Our Mike Dullaghan illustrates how to use the DOL tips in preparation for plan review season.

The rise of LLMs and public availability of generative AI tools has driven a wave of excitement over AI’s potential to transform society, economies, and workflows.

The Momentum factor picked up where it left off at the end of the first quarter, turning in another standout performance in the April-through-June timeframe and ending the second quarter as the factor most relevant to positive performance.

The second quarter began with inflation concerns causing a negative return in April, but improved inflation led to a more hopeful market in May and June, with AI and semiconductor stocks leading.

It’s earnings season yet again. And I think this one is going to be more down-to-earth than the ones we’ve had over the past year.

Elections have been anything but easy for investors. What has been easy is financial conditions in the US relative to the level of policy rates, fostering the debate over the degree of policy restrictiveness as global monetary easing begins.

Diverse stakeholders shared perspectives at AB’s Advancing Retirement Income symposium.

In this article, Russ Koesterich discusses why bonds are still not a reliable hedge for equities in an environment where inflation remains elevated and volatile.

Comparing public fixed income and private credit markets involves weighing factors related to liquidity, transparency, credit quality, risk premium, and opportunity costs.

Many investors hold a concentrated stock position that represents a large percentage—typically 10% to 20%—of their overall portfolio value. Let’s review the risks of concentrated positions and then survey some of the possible solutions.

Last week we had our quarterly live call for Yield Shark subscribers. We had some great conversations over the course of the hour. One of the major topics that came up was what will happen through the end of the year. Will we see a correction or a rotation? If so, when will this happen? And most important, how can we prepare?

In this piece, we attempt to answer a number of questions we have gotten from clients about the impacts that rising levels of passive investing may have had on the stock market.

The giant federal debt we’ve been talking about isn’t just borrowed money. It is also lent money. Loans are two-party transactions. One side receives temporary use of cash which it agrees to repay with interest. The other gives up the current use of that cash in exchange for receiving interest. Ideally, it works out for both… but not always.

In the second half of the year, investors will likely be navigating a potential divergence in monetary policy among the major economy central banks, a more normalized U.S. interest rate regime, and an equity market that may favor quality.

Confidence is up, but inflation and other worries offer ways to work toward better outcomes.

Inflation is not fun. And—for the past 30 years—it has largely been a non-issue for consumers. That dynamic has changed. The relevant question is whether this is something persistent and meaningful or simply a fleeting feeling.

I was a landlord once and it didn’t turn out how I expected. I think it mattered that I didn’t set out to be a landlord. I had bought a house in Baltimore City that I expected to live in for many years.

Defending my love of dividends consumes a lot of my time. Sometimes I’ll pull out my track record. Other times I explain how owning boring and stable dividend stocks means I spend less time watching and worrying about them.

A defining feature of the post-COVID investment regime has been the persistence of elevated market uncertainty and volatility. The below visual highlights how this has led to a wider range of market performance outcomes, focusing in on the vast difference between the last two calendar years.

Our actively managed equity funds that employ machine learning (ML)—and their shareholders—are starting to benefit, according to Cesar Orosco, CFA, and Scott Rodemer, CFA, of Vanguard’s Quantitative Equity Group (QEG). The group develops quantitative models that attempt to replicate what a good fundamental investor would do, but systematically and at scale.

The Federal Open Market Committee is always data-dependent. But the dependency is not always the same. There are times when inflation matters more than the labor market, and times when the situation is reversed. Every regime is unique. There is never a perfect corollary to a previous experience. This time is not different.

Since the Global Financial Crisis of 2007-09, fixed income investors have suffered the worst of both worlds. For a dozen years they endured the stingiest of yields on their fixed income holdings.

Ross Riskin's op-ed examines the potential drawbacks of using glide path portfolios in 529 college savings plans, particularly during high-interest rate environments. He suggests that money market options may offer better capital preservation for funds needed during college enrollment, emphasizing the shift from growth to stability in investment strategies.

VettaFi discusses changes in the MLP/midstream investment product landscape.

Some of the biggest names in tech started paying dividends this year. This includes Alphabet (GOOG), Meta Platforms (META), Salesforce (CRM), and Booking Holdings (BKNG).

Steady income and access to remaining assets are key considerations for DC plan sponsors.

Learn how using a “switch” trading strategy can create efficiencies to improve overall execution cost and quality.

Managers are increasingly focusing on sectors beyond tech that could benefit from the rise in AI in the short term. These include healthcare and consumer companies, which also have more attractive valuations.

As long as ETFs stay true to their original mindset of solving investor problems, growth is the only path forward. Current product development suggests that’s the most likely case.

At the Berkshire Hathaway Annual Meeting we marked what we believe is the end of an era both for Berkshire and for the S&P 500 Index.

How momentum and election cycles may shift the impact and timing of seasonal trends.

The latest run of unchecked optimism might just be over.

Another strong quarter in markets led to another stellar performance for the Momentum and Growth factors.

After a strong start to the year, equity investors are assessing whether a range of escalating risks will lead to continued volatility ahead. In this quarter’s Systematic Equity Outlook, we’ll explore macro and micro risks through a systematic lens, and how we’re positioning portfolios to harness alpha opportunities ahead.

The market has been highly tuned to news from the Fed or developments in artificial intelligence technology to set expectations.

Interpreting flows into ETFs and mutual funds sometimes feels an awful lot like reading tea leaves, but I love it.

Why the current momentum trade, despite stretched valuations, could continue.

Over half of Gen Z and Millennials have a side hustle or some kind of gig work to supplement their income. The numbers show that nearly two-thirds of workers are living paycheck to paycheck.