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.
Amundi SA and First Eagle Investment Management are looking to raise as much as $5 billion for a new private credit strategy that will offer wealthy individuals in Europe, the Middle East and Asia access to private loans made to mid-size US companies.
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.
Wheat and corn are the most actively traded grains in financial markets. But they can’t damage the global economy like rice. The staple for half the world is largely ignored by Wall Street, but it’s the one commodity that really matters for global food security.
American Express Co. warned it’s planning to increase spending on marketing in the coming months after billings growth on the payments giant’s credit cards slowed in the second quarter.
How’s this for an election trade? Sell your winners now so you have cash on hand this fall to do some aggressive buying as the political jockeying heats up.
There’s a new-found religion in the US airline industry, and investors should be thrilled. It’s called discipline.
At some of the world’s biggest asset managers, ESG fund launches are quietly stalling.
A growing number of Wall Street economists are cautioning the Federal Reserve is waiting too long to reverse course after raising interest rates to a two-decade high.
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.
A young colleague came to me recently with a shameful admission: Despite the lecturing of her friends and family, as well as her own best intentions, she had not yet signed up for the company 401(k) plan. She lives in an expensive city and is nervous about tying up her money for the next 40 or 50 years.
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.
No matter who wins November’s US presidential election, there’s a growing risk that Americans will be paying higher taxes next year, according to MacKay Shields LLC. That makes muni bonds an attractive shield.
Bain Capital and Reverence Capital Partners have agreed a deal to take Envestnet Inc., a provider of wealth-management software, private.
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.
Life has been getting busier for investment bankers, but dealmakers aren’t cashing any checks yet. A stream of big-ticket merger and acquisition announcements this year bodes well for future revenue and bonuses, but no one gets paid until deals are completed. And that might not happen until late 2024 or even next year.
Tracking down those in the technology industry cautious about artificial intelligence is much like looking for Republicans in San Francisco: There’s plenty of them out there, if you’d care to ask. And lately, they seem to be growing in number.
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.
As RIAs and broker-dealers consider how to allocate future spending, they would be wise to recognize how technology designed to support fee-for-service financial planning can help them meet their most immediate goals while also allowing them to grow and nurture next-generation wealth management clients.
Markets today pose a new existential question: Can there be a bubble in something if it has no price?
The oil company declared its traditional business was all but over. “The demand for fossil oil products will continue to decline,” it said in late 2020 as the pandemic slashed consumption. Even when Covid-19 is over, consumption wouldn’t “recover to previous levels.”
Taiwan Semiconductor Manufacturing Co. rose to a record intraday high in Taipei after Morgan Stanley joined a list of brokers boosting price targets on the chipmaker before its earnings.
Jerome Powell will face pressure this week from lawmakers growing impatient for the Federal Reserve to cut interest rates and others who are unhappy with its latest plan to boost capital requirements for Wall Street lenders.
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.
Roxanna Islam, Head of Sector and Industry Research at VettaFi, discusses the benefits and flaws of applying rules-based investing to closed-end funds. She notes that changes in the industry have forced changes on a rules-guided index of closed-end funds and how that is impacting the holdings and asset allocation of the fund-of-funds that some investors are using instead of building their own portfolio of individual closed-end strategies.
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.
There’s a lot of bubble talk around US stocks. The market has been on fire in recent years. The S&P 500 Index has more than doubled in value since bottoming in March 2020 on Covid fears. It’s also up 14% a year since 2010, including dividends, nearly 5 percentage points a year better than its long-term annual return.
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.
Investors and their advisors have become more open to allocations to private investments in recent years as they seek improved risk-adjusted returns and diversification benefits.
In this article, Russ Koesterich discusses the YTD strength of energy stocks and why it could continue.
Less than 15 months after the world’s most recent banking crisis, regulators in the US and Europe are already poised to roll back reforms aimed at reducing the risk of further financial disasters. It’s a serious mistake.
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.
This week’s meme-stock pop is a sign that US equity markets are frothy and potentially peaking, according to the latest Bloomberg Markets Live Pulse survey.
An elevated or rising rate environment creates pockets of opportunity within asset classes such as closed-end funds.
On this week’s episode of ETF Prime, host Nate Geraci is joined by VettaFi Head of Research Todd Rosenbluth to discuss hedge funds embracing ETFs, spot ether ETFs, and a potential shortage of ETF tickers, among other topics. Afterward, Bancreek CEO and CIO Andrew Skatoff spoke with Geraci about his investment philosophy.
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.
Investors need more patience for the euphoria about artificial intelligence to lift the stocks of software makers.
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.
Investing in sports franchises can be a good portfolio diversifier and generate attractive returns.
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).
To Jamie Dimon, it's no better than a “pet rock.” To the late Charlie Munger, longtime lieutenant to Warren Buffett, it's “massively stupid.” And to US Senator Elizabeth Warren, it's a great tool if you’re a terrorist, drug dealer or fraudster.
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.
As the best hedge fund strategy of 2023 becomes a magnet for mainstream investors, the risk models it relies on are getting a lot tougher to crack.
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.
In the first installment of this series, I pledged to unveil a retirement strategy with such merit that it warrants widespread adoption by the investment advisor community. Let's delve into the compelling case for this approach.
There are three pitfalls that I most commonly see income investors fall victim to. I hope illustrating them will help you avoid their damaging effects on your investment portfolio.
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.
Healthy profit margins matter for your practice and your clients. Here are tips you can use to boost your profitability.
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.
Bitwise’s Matt Hougan answers all of the key questions surrounding how spot bitcoin ETFs actually work. VettaFi’s Todd Rosenbluth offers perspective on the launch of spot bitcoin ETFs and highlights the latest VettaFi polling data on advisor crypto usage. Calamos’ Matt Kaufman explains the brand new Calamos CEF Income & Arbitrage ETF (CCEF).
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.
Can the Magnificent Seven retain its crown? Or will some subset of the 493 other S&P 500 stocks and their neglected sectors take the throne in 2024?
Equity markets are on track for a strong finish to the year, powered by mega-cap growth stocks — the equity MVPs of 2023.
Airline consolidation is not only relatively common but necessary for growth and competitiveness, and the recent announcement of Alaska Airlines’ planned acquisition of Hawaiian Airlines is a prime example of this trend.
US household wealth declined in the third quarter by the most in a year on a drop in the value of stock holdings.
When it comes to commercial real estate, a lot of attention is obviously paid to offices. But it's not the only sector facing strains.
News that a Washington DC Court of Appeals ruled in favor of Grayscale Investments LLC over the Securities and Exchange Commission has ignited hope that a Bitcoin exchange-traded fund will soon be available. Bitcoin prices jumped.
I show how the best way to utilize bonds in retirement is not to rebalance between stocks and bonds in retirement, but rather to draw down on the bond side of the portfolio first and let the portfolio drift towards a greater equity allocation.
Investors should embrace a genuine long-term perspective, extending their time horizons to at least 20 to 30 years. The traditional notion of long-term investing (five to 10 years) may fall short of realizing the full benefits of long-term strategies.
A China ‘Recovery’: How important is the loss of confidence within China itself?
New investors are overwhelmingly choosing ETFs as their investment vehicle of choice. Between June 13 and June 28, Charles Schwab conducted a comprehensive survey of 2,200 investors for its 2023 ETFs and Beyond Study.
With relatively risk-free yields in treasuries and money markets, traditional dividend ETFs are losing some of their luster to investors. However, there are alternative income strategies that may help boost yield through options-based supplementation of high quality dividend paying stocks or focusing on income generating market segments like natural resource stocks or secondary closed-end funds.
Given the likelihood that economists are again myopic in their inflation forecasts and bond traders are betting on such projections, I see a day soon when a disinflationary or deflationary reality hits the bond market and bond yields plummet.
Jon Fee and Jane Edmondson dive into HIPSTR, an income generated index that utilizes closed end funds in MLPs, BDCs and REITs.
It’s been a great year for alternative income strategies as inflation, interest rate, and recession risk fears dominated markets. Garrett Paolella of NEOS and Christian Magoon of Amplify ETFs joined VettaFi’s Tom Lydon to discuss alternative income opportunities at the Income Strategy Symposium hosted by VettaFi on October 27.
VettaFi’s vice chairman Tom Lydon discussed the Grayscale Bitcoin Trust (GBTC) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.”
This article discusses one of my favorite bond fair-value models to show you the true bond-yield signal.
The Fed-induced selloff in technology stocks has traders dusting off their turmoil playbooks. Trouble is, one of the most popular strategies isn’t working: hiding out in Apple Inc.
A financial crisis, following the 5.50% hike in Fed funds and similar increases in all bond yields, is virtually inevitable.
Private infrastructure offers unique investment characteristics and potential diversification benefits for portfolio construction.
In many ways, 2023 continues to be the mirror image of 2022, with the most volatile assets being some of the best performers for much of the year.
Rising interest rates are giving sellers an opportunity to broaden their opportunity set.
Closed End Funds
Back to School: Macro Cliff Notes and a Look Ahead
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.
Amundi Tie-Up Offers US Private Credit to Wealthy Individuals
Amundi SA and First Eagle Investment Management are looking to raise as much as $5 billion for a new private credit strategy that will offer wealthy individuals in Europe, the Middle East and Asia access to private loans made to mid-size US companies.
Can ETFs Capture Private Equity Markets?
Private assets are the fastest-growing market in the financial world, but could be the most challenging field for ETF providers to penetrate.
Let’s Get Real (Rates)!
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.
Active Management Will Drive Muni Returns in 2024
Municipal bonds maintained their summer strength and posted a second-consecutive month of positive performance in July.
Systematic Equity Outlook: Decoding Upside and Downside Risks
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.
Gold Shines, Defying Historical Relationships
In this article, Russ Koesterich discusses factors behind gold’s impressive performance year to date.
The Rice Price Scare is Over — Let’s Learn the Lessons
Wheat and corn are the most actively traded grains in financial markets. But they can’t damage the global economy like rice. The staple for half the world is largely ignored by Wall Street, but it’s the one commodity that really matters for global food security.
Amex Says It’s Going on Marketing Spree as Billings Growth Slows
American Express Co. warned it’s planning to increase spending on marketing in the coming months after billings growth on the payments giant’s credit cards slowed in the second quarter.
Hedge Funds Have an Election Plan: Sell the Calm, Buy the Chaos
How’s this for an election trade? Sell your winners now so you have cash on hand this fall to do some aggressive buying as the political jockeying heats up.
Airfare War Is Ending Quickly as Carriers Retreat
There’s a new-found religion in the US airline industry, and investors should be thrilled. It’s called discipline.
Backlash Against ESG Seen in Sharp Decline of Fund Launches
At some of the world’s biggest asset managers, ESG fund launches are quietly stalling.
Wall Street Economists See Compelling Case for Fed to Cut Now
A growing number of Wall Street economists are cautioning the Federal Reserve is waiting too long to reverse course after raising interest rates to a two-decade high.
M2 Slowdown Finally Gaining Traction
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.
Yes, You Can Save Too Much for Retirement
A young colleague came to me recently with a shameful admission: Despite the lecturing of her friends and family, as well as her own best intentions, she had not yet signed up for the company 401(k) plan. She lives in an expensive city and is nervous about tying up her money for the next 40 or 50 years.
Are We There Yet? Bonds Still an Unreliable Hedge
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.
Tax Hikes Seen No Matter Who’s President, Making Muni Bonds Attractive
No matter who wins November’s US presidential election, there’s a growing risk that Americans will be paying higher taxes next year, according to MacKay Shields LLC. That makes muni bonds an attractive shield.
Bain, Reverence Near $3.5 Billion Deal for Envestnet
Bain Capital and Reverence Capital Partners have agreed a deal to take Envestnet Inc., a provider of wealth-management software, private.
Will the Fed Cut Rates before Reaching 2% Inflation?
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.
Does Value Matter Anymore?
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.
M&A Is Back. Bonuses, Not So Much.
Life has been getting busier for investment bankers, but dealmakers aren’t cashing any checks yet. A stream of big-ticket merger and acquisition announcements this year bodes well for future revenue and bonuses, but no one gets paid until deals are completed. And that might not happen until late 2024 or even next year.
Will AI Ever Pay Off? Those Footing the Bill Are Worrying Already
Tracking down those in the technology industry cautious about artificial intelligence is much like looking for Republicans in San Francisco: There’s plenty of them out there, if you’d care to ask. And lately, they seem to be growing in number.
Cantillon Marries the Red Queen
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.
Are Americans Ready for the US-China Trade War?
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.
Fee-for-Service Financial Tools Can Help Advisory Firms Meet a Variety of Critical Growth Goals
As RIAs and broker-dealers consider how to allocate future spending, they would be wise to recognize how technology designed to support fee-for-service financial planning can help them meet their most immediate goals while also allowing them to grow and nurture next-generation wealth management clients.
The Private Equity Bubble Is About to Deflate
Markets today pose a new existential question: Can there be a bubble in something if it has no price?
Another Green Bubble Is Deflating in Biofuels
The oil company declared its traditional business was all but over. “The demand for fossil oil products will continue to decline,” it said in late 2020 as the pandemic slashed consumption. Even when Covid-19 is over, consumption wouldn’t “recover to previous levels.”
TSMC Shares Soar to Record on Expectations of Tight 2025 Supply
Taiwan Semiconductor Manufacturing Co. rose to a record intraday high in Taipei after Morgan Stanley joined a list of brokers boosting price targets on the chipmaker before its earnings.
Powell to Face Fed Critics in Congress on High Rates, Bank Rules
Jerome Powell will face pressure this week from lawmakers growing impatient for the Federal Reserve to cut interest rates and others who are unhappy with its latest plan to boost capital requirements for Wall Street lenders.
Abundant Income
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.
The Highs & Lows of Applying Rules to CEF Investing
Roxanna Islam, Head of Sector and Industry Research at VettaFi, discusses the benefits and flaws of applying rules-based investing to closed-end funds. She notes that changes in the industry have forced changes on a rules-guided index of closed-end funds and how that is impacting the holdings and asset allocation of the fund-of-funds that some investors are using instead of building their own portfolio of individual closed-end strategies.
Investing Beyond Benchmarks: The Case for Unconstrained Equities
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.
Grant: Rates Are Going Much Higher. Is He Right?
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.
The J-Curve in Private Equity—and How to Potentially Beat It
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.
Double-Digit US Stock Returns Are in the Past, Bubble or Not
There’s a lot of bubble talk around US stocks. The market has been on fire in recent years. The S&P 500 Index has more than doubled in value since bottoming in March 2020 on Covid fears. It’s also up 14% a year since 2010, including dividends, nearly 5 percentage points a year better than its long-term annual return.
Active Management Will Drive Muni Returns in 2024
Municipal bonds deviated from U.S. fixed income assets and posted negative performance in May.
QT-Lite: Quantitative Tightening's Limited Impact
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.
Structuring an Allocation to Private Equity
Investors and their advisors have become more open to allocations to private investments in recent years as they seek improved risk-adjusted returns and diversification benefits.
Energy Stocks, Surprising Leaders
In this article, Russ Koesterich discusses the YTD strength of energy stocks and why it could continue.
Fragile Banks Won’t Make the US or Europe Stronger
Less than 15 months after the world’s most recent banking crisis, regulators in the US and Europe are already poised to roll back reforms aimed at reducing the risk of further financial disasters. It’s a serious mistake.
Value Stocks: Cracking the Quality Code
Today’s value stocks offer a magnificent mix of quality, forward-looking profitable firms.
ETFs, CEFs & More: MLP Investment Products Evolve
VettaFi discusses changes in the MLP/midstream investment product landscape.
Growth Stocks Demonstrating Resilience
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.
Revival of Meme-Stock Frenzy Points to a Frothy US Stock Market
This week’s meme-stock pop is a sign that US equity markets are frothy and potentially peaking, according to the latest Bloomberg Markets Live Pulse survey.
Why Now Is the Time for Closed-End Fund Strategies
An elevated or rising rate environment creates pockets of opportunity within asset classes such as closed-end funds.
Around the World of ETFs with VettaFi’s Todd Rosenbluth
On this week’s episode of ETF Prime, host Nate Geraci is joined by VettaFi Head of Research Todd Rosenbluth to discuss hedge funds embracing ETFs, spot ether ETFs, and a potential shortage of ETF tickers, among other topics. Afterward, Bancreek CEO and CIO Andrew Skatoff spoke with Geraci about his investment philosophy.
Election Years Create Their Own Patterns
How momentum and election cycles may shift the impact and timing of seasonal trends.
True Fixed Income: Are You Comparing Apples to Oranges?
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.
Quality Is Now a Momentum Trade
Why the current momentum trade, despite stretched valuations, could continue.
Russell Investments 2024 Private Markets Survey: Where Do Managers See Opportunities Today?
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.
An AI-Rally for Software Makers Will Demand Investor Patience
Investors need more patience for the euphoria about artificial intelligence to lift the stocks of software makers.
India: The Structural Growth Story and the Long-Term Investment Opportunity
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.
Emotional Rescue: Markets, Fed Policy, and Elections
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.
The Business of Sports is Booming
Investing in sports franchises can be a good portfolio diversifier and generate attractive returns.
This Is Nuts – An Entire Market Chasing One Stock
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).
Wall Street Turbocharges Bitcoin's Wild Rally and Rakes In Cash
To Jamie Dimon, it's no better than a “pet rock.” To the late Charlie Munger, longtime lieutenant to Warren Buffett, it's “massively stupid.” And to US Senator Elizabeth Warren, it's a great tool if you’re a terrorist, drug dealer or fraudster.
The Surge In Bitcoin ETFs And Its Potential Impact On Gold
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.
Risk Models Behind World’s Best Hedge Fund Strategy Are Getting a Lot Harder to Crack
As the best hedge fund strategy of 2023 becomes a magnet for mainstream investors, the risk models it relies on are getting a lot tougher to crack.
Speculative Euphoria and the Fear of Missing Out
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.
An RIA-Friendly Life Insurance Strategy for Retirement Security (Part Two)
In the first installment of this series, I pledged to unveil a retirement strategy with such merit that it warrants widespread adoption by the investment advisor community. Let's delve into the compelling case for this approach.
Avoid These Three Income Investing Pitfalls
There are three pitfalls that I most commonly see income investors fall victim to. I hope illustrating them will help you avoid their damaging effects on your investment portfolio.
Passive vs. Active ETFs of CEFs
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.
Slow(er) Ride to Rate Cuts
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.
The Path to a More Profitable Practice
Healthy profit margins matter for your practice and your clients. Here are tips you can use to boost your profitability.
Investing in Private Infrastructure: A Look at Insights, Trends and Expert Perspectives
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.
Bitwise’s Matt Hougan: Spot Bitcoin ETFs 101
Bitwise’s Matt Hougan answers all of the key questions surrounding how spot bitcoin ETFs actually work. VettaFi’s Todd Rosenbluth offers perspective on the launch of spot bitcoin ETFs and highlights the latest VettaFi polling data on advisor crypto usage. Calamos’ Matt Kaufman explains the brand new Calamos CEF Income & Arbitrage ETF (CCEF).
Navigating Macro Currents in 2024
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.
Where Will the Global Economy Land in 2024?
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.
What’s Now Inside Some Fundamentally Focused ETFs
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.
What Will Replace the Magnificent Seven in 2024?
Can the Magnificent Seven retain its crown? Or will some subset of the 493 other S&P 500 stocks and their neglected sectors take the throne in 2024?
The Power of Diversified Alpha
Equity markets are on track for a strong finish to the year, powered by mega-cap growth stocks — the equity MVPs of 2023.
How Alaska and Jetblue’s Mergers Could Reshape the Domestic Airline Industry
Airline consolidation is not only relatively common but necessary for growth and competitiveness, and the recent announcement of Alaska Airlines’ planned acquisition of Hawaiian Airlines is a prime example of this trend.
US Household Net Worth Falls on Drop in Value of Stock Holdings
US household wealth declined in the third quarter by the most in a year on a drop in the value of stock holdings.
Why Multifamily Is the Next Stress Point in Commercial Real Estate
When it comes to commercial real estate, a lot of attention is obviously paid to offices. But it's not the only sector facing strains.
Grayscale’s Bitcoin Win Is Still Only Half the Battle
News that a Washington DC Court of Appeals ruled in favor of Grayscale Investments LLC over the Securities and Exchange Commission has ignited hope that a Bitcoin exchange-traded fund will soon be available. Bitcoin prices jumped.
How Rebalancing Thwarts Achieving Retirement Goals
I show how the best way to utilize bonds in retirement is not to rebalance between stocks and bonds in retirement, but rather to draw down on the bond side of the portfolio first and let the portfolio drift towards a greater equity allocation.
Breaking the Chains of Time
Investors should embrace a genuine long-term perspective, extending their time horizons to at least 20 to 30 years. The traditional notion of long-term investing (five to 10 years) may fall short of realizing the full benefits of long-term strategies.
Confidence
A China ‘Recovery’: How important is the loss of confidence within China itself?
Schwab Survey Reveals Strong Investor Preference for ETFs
New investors are overwhelmingly choosing ETFs as their investment vehicle of choice. Between June 13 and June 28, Charles Schwab conducted a comprehensive survey of 2,200 investors for its 2023 ETFs and Beyond Study.
The Year of Alternative Income
With relatively risk-free yields in treasuries and money markets, traditional dividend ETFs are losing some of their luster to investors. However, there are alternative income strategies that may help boost yield through options-based supplementation of high quality dividend paying stocks or focusing on income generating market segments like natural resource stocks or secondary closed-end funds.
Will Economists Keep Making the Same Mistake?
Given the likelihood that economists are again myopic in their inflation forecasts and bond traders are betting on such projections, I see a day soon when a disinflationary or deflationary reality hits the bond market and bond yields plummet.
VettaFi Voices talk HIPSTR- an alternative investment index
Jon Fee and Jane Edmondson dive into HIPSTR, an income generated index that utilizes closed end funds in MLPs, BDCs and REITs.
Income Opportunities in Bonds and Beyond
It’s been a great year for alternative income strategies as inflation, interest rate, and recession risk fears dominated markets. Garrett Paolella of NEOS and Christian Magoon of Amplify ETFs joined VettaFi’s Tom Lydon to discuss alternative income opportunities at the Income Strategy Symposium hosted by VettaFi on October 27.
Grayscale Bitcoin Trust (GBTC)
VettaFi’s vice chairman Tom Lydon discussed the Grayscale Bitcoin Trust (GBTC) on this week’s “ETF of the Week” podcast with Chuck Jaffe of “Money Life.”
Noise is Hiding a Tremendous Bond Market Opportunity
This article discusses one of my favorite bond fair-value models to show you the true bond-yield signal.
Megacap Slump Is Testing Apple’s Safe-Haven Status
The Fed-induced selloff in technology stocks has traders dusting off their turmoil playbooks. Trouble is, one of the most popular strategies isn’t working: hiding out in Apple Inc.
The Looming Crisis: Who Is Swimming Naked?
A financial crisis, following the 5.50% hike in Fed funds and similar increases in all bond yields, is virtually inevitable.
Unlisted Infrastructure – Highway to Diversification
Private infrastructure offers unique investment characteristics and potential diversification benefits for portfolio construction.
As the Economy Slows, Favor Consistency Over Volatility
In many ways, 2023 continues to be the mirror image of 2022, with the most volatile assets being some of the best performers for much of the year.
Seller Financing of Real Estate is Back
Rising interest rates are giving sellers an opportunity to broaden their opportunity set.