Closed End Funds

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.

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.

Recent growth data have been muddled and subject to conflicting interpretations. There have been mixed signals from leading indicators and hard data and divergent readings across major economies.

Private assets are the fastest-growing market in the financial world, but could be the most challenging field for ETF providers to penetrate.

The most glaring uncertainties today, which contributed to early August seeing some of the largest market moves in the last several years, are the risks associated with the Federal Reserve’s dual mandate.

Municipal bonds maintained their summer strength and posted a second-consecutive month of positive performance in July.

Recent macroeconomic and geopolitical developments, along with shifting AI sentiment, have raised concerns over whether strong headline returns, low volatility, and persistent mega cap tech leadership can continue as we look ahead.

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

The lags between a shift in monetary policy and the economic impact are long and variable. While the actions of the Federal Reserve during the pandemic were unprecedented, it finally looks like the excess money pumped into the economy has worked its way through the system. And with the M2 measure of the money supply down from its peak, the economy is reacting.

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.

The outlook for the Federal Reserve (Fed) through the first six months of 2024 has been a bit of a roller-coaster ride to say the least. While one could argue the overarching premise has been for rate cuts, it has certainly not been a smooth ride.

An increasing number of investors believe that value investing might never again be successful. We think that is a strange conclusion because valuation is critical to every transaction in the economy. An economy cannot function properly without thoughtful value assessments. In our latest insight, we analyze the differences between value and growth investing over time and outline the generational opportunities that investors may be overlooking.

Over the last four years, we have maintained that the U.S. middle-class consumer is on firmer ground than many believe. The first wave of inflation that seems to be receding is just that—the first wave of a set—and oil and gas companies are fundamentally well-positioned for the next decade.

The China trade shock of the 1990s and 2000s is widely blamed for hollowing out the US manufacturing sector. But anyone who thinks that unwinding trade with China will not result in price increases and significant political backlash is in for a rude awakening.

Rick Rieder and team argue that the economy is making further progress towards normalization and continues to offer a once-in-a-generation investing opportunity, which isn’t adequately represented by the benchmarks.

Market indexes can be a useful barometer of long-term performance. But the investment opportunity set need not start and end there. Fundamental Equities investor Alister Hibbert uses an unconstrained approach in seeking to identify those rare companies that stand out from the pack.

Recently, James Grant, editor of the Interest Rate Observer, was asked about his outlook for interest rates. He sees interest rates moving in a cyclical pattern, potentially rising for another multi-decade period.

Partnering with firms that have the requisite scale and demonstrated access to top-tier investment opportunities is one way investors can potentially eliminate the J-curve in a private markets investment program.

Municipal bonds deviated from U.S. fixed income assets and posted negative performance in May.

The Federal Reserve’s balance sheet is one of the world’s most important security portfolios. Yet, its ongoing importance for markets and financial conditions is often underappreciated.

In this article, Russ Koesterich discusses the YTD strength of energy stocks and why it could continue.

Today’s value stocks offer a magnificent mix of quality, forward-looking profitable firms.

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

In this article, Russ Koesterich discusses why stocks are proving to be resilient in the face of higher rates and muted expectations for monetary easing.

An elevated or rising rate environment creates pockets of opportunity within asset classes such as closed-end funds.

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

Timing has never been a crucial undertaking for fixed income allocations dedicated to asset preservation largely because this is a long-term endeavor dedicated to keeping an investor’s wealth intact.

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

Private markets continue to become an even more prevalent component of investor portfolios, providing access to an expanded opportunity set and strong diversification beyond traditional stocks and bonds.

India’s equity markets are being driven by fundamentals in the form of robust economic expansion which is leading to strong earnings growth. India is also, helpfully, in the draft of favorable geopolitical tailwinds. In this paper, we make the case for India.

Between adjustments in Fed policy and a coming presidential election, it's going to be an emotional year, but historical data shows staying invested is the best course for investors.

I revisited that original post a couple of weeks ago as the market approached its 5000 psychological milestone. Since then, the entire market has surged higher following last week’s earnings report from Nvidia (NVDA).

Bitcoin and gold were both top of mind at this past week’s 2024 Investment U Conference in Ojai, California, which I had the privilege of presenting at.

If you’re losing your mind and plagued by fear of missing out, it might be that you’re best served with some passive investment exposure in your portfolio. Not because it will do well, at least not in our estimation, but so you don’t lose your mind.

Closed-end funds (CEFs) are relatively under the radar compared to peers like exchange-traded funds (ETFs) and mutual funds. Closed-end funds are generally desirable for two reasons: 1) high income; and 2) premium/discount mechanism.

While focus remains on when the Fed will start cutting rates, history suggests other factors must be looked at when assessing forward stock market performance.

More institutional investors are exploring infrastructure for diversification, income and stable return potential as well as inflation protection. Investors are looking at both the traditional segments and newer digital sectors along with renewables.

Risk assets surged to end 2023 as the Federal Reserve blessed market hopes for rate cuts. That momentum could persist for some time as inflation cools.

Heading into 2024, most economists and market analysts have adopted a baseline scenario in which most major economies avoid both a recession and renewed inflation – the much-desired "soft landing." But the current encouraging consensus could still be derailed by any number of factors, not least geopolitics.

Many of us were prepping for year-end (or on vacation in Belize, in my case) in December. However, index providers were hard at work to ensure certain ETFs fully reflected the investment criteria advisors have come to expect.

Equity markets are on track for a strong finish to the year, powered by mega-cap growth stocks — the equity MVPs of 2023.