Factor-Based Investing

Members of Congress from both parties were among the many caught off guard by last week's Rose Garden tariff announcement.

In an era when a select group of tech behemoths has dominated market returns, investors are growing increasingly wary of the concentration risk it poses.

The fifth edition of our annual “Voice of the American Workplace” survey, conducted by The Harris Poll on behalf of Franklin Templeton, includes the perspectives of both employers and workers. The 2025 survey found US workers are prioritizing work-life balance and their mental health. Employers are listening and strengthening their focus on improving benefits and communication. In this piece, our Jacque Reardon shares findings from the survey and potential implications for employers.

Many of us came into the year with highly concentrated portfolios, which now were faced with changing market conditions.

The recent market drawdown highlights risks of a concentrated S&P 500—and the case for diversification now.

As investors are uncomfortably aware of, global equity markets have been in freefall since U.S. President Donald Trump’s announcement of “reciprocal tariffs” on April 2.

Last week's economic landscape was dramatically reshaped by President Trump's announcement of sweeping tariff policies on what he declared "Liberation Day." His announcement triggered a historic sell-off in the stock market.

Global markets are in freefall in response to President Donald Trump’s universal 10% tariff on all goods being imported into the U.S., with as many as 60 countries facing “reciprocal” tariffs on top of that.

In the report, Fixed income portfolio managers Brent Olson and Tim Winstone reflect on the initial credit market response to President Trump’s tariffs.

Social Security faces funding issues by 2035, but major changes to the program are unlikely in the near term.

Active ETFs just topped the $1 trillion threshold, making up nearly 10% of the total ETF pie. Enhanced yield is the name of the game.

Investors face new challenges as their wealth grows. So it’s a good thing that direct indexing is designed to fit their allocations just the way they are.

The world has entered a period of geopolitical uncertainty, with the U.S. now at the center of the storm.

Fixed income investors can opt for corporate bonds to maximize yield opportunities without sacrificing too much credit risk.

Amid a market correction and heightened policy, inflation and growth concerns, valuations are back in the spotlight.

During the ten years prior to COVID, PCE inflation, the Fed’s preferred measure, averaged about 1.5% per year. Jerome Powell said it was too low and he wanted inflation to “average” 2% over time.

Investing requires more than just understanding global markets. Geopolitical risk matters, from China to Russia to Europe and more.

For taxable investors with sizable gains in their brokerage accounts, the decision when to realize that capital gain is intensely personal—depending of course on individual circumstances, while also factoring in market return expectations and the prevailing tax structure.

As policy uncertainty grows, we consider how tariffs and other government actions might impact inflation, interest rates, and market sentiment.

The stock market sell-off appears to be signaling a recession. However, we believe the bond market disagrees.

Despite NVIDIA’s stock flashing a bearish “death cross”—its 50-day moving average slipped below the 200-day moving average for the first time since January 2023—the energy at the conference was electrifying. Every major industry was represented, from health care to defense, signaling that artificial intelligence (AI) is expanding at a white-knuckle clip.

The equity market tends to see a correction every 18 months. If it's not a recession-induced bear market, it may be a buying opportunity.

Since our last update of our ‘Three Tactical Rules’ on February 4, equity markets have been under pressure as the S&P 500 has retraced more than 23% of the rally that started October 2023.

The U.S. housing market has been a critical factor in the broader economic landscape, and its trends have profound implications.

The economy stands upon the edge of a knife as gold hits new highs. Plus, we review our predictions for gold and silver last year and provide our price predictions for 2025.

One of the biggest challenges investors face today is navigating the most concentrated U.S. stock market in history, where the largest stocks represent a record share of total market value.

Understanding actual inflation – instead of what the media’s narrative tells you it should be – is critical to your investment planning. It is one thing for a pundit to say this or that, but it is another to look at the actual data for yourself.

One thing we have seen underscored in 2025 is that the bond market can change its mind very quickly, particularly as it relates to policy emanating from Washington, D.C. Following President Trump’s election win, the dominant theme in the U.S. Treasury (UST) arena was that his Administration’s policies would lead to higher budget deficits, increasing UST supply and, ultimately, higher rates for maturities like the 10-Year yield.

Bitcoin and other cryptocurrencies didn’t do much of anything following last week’s crypto summit at the White House.

Parametric’s tax optimized ladders (TOL) solution may help to enhance after-tax yield by seeking to optimize the allocation between tax-exempt and taxable bonds, based on an investor’s own tax rate and the relative value between sectors.

Last week's economic reports presented a narrative similar to what we’ve seen over the past few months: growth coupled with concerns.

I will again join forces with Ed Easterling of Crestmont Research to explore this data more deeply. Currently we have several powerful trends that have combined to create a nirvana-like market.

The U.S. has poured more than $120 billion into Ukraine since its war with Russia began three years ago, but with a new administration in Washington, that support is grinding to a halt.

The European Central Bank will likely continue to cut interest rates, but future decisions could be more contentious.

Cambria Investments CIO and founder Meb Faber explores David Swensen’s legendary investment strategy at Yale’s endowment, comparing its long-term performance to traditional portfolios and examining whether individual investors can replicate its success.

Volatility is back in town. Tariff jitters and concerns about growth and inflation have resulted in an S&P 500® dip and the Cboe Volatility Index (VIX) jumping above 20. Investors grapple with a very sanguine backdrop painted by the fourth-quarter earnings season and policy uncertainty.

The value today of quality bond exposure in your high yield portfolio.

Treasury yields have been falling for weeks. Yet inflation expectations remain high and recent growth data have been fairly strong—not a traditional backdrop for declining yields. What's happening?

We view quarterly earnings season as a critical checkup on how markets are handling current challenges.

Unlike most of the rest of the world, I will attempt to minimize all there is to say about the beginning of the next 4 years, as the persistent yack and what to make of it reverberates in all corners of the financial globe.

Heightened economic uncertainty—propelled mainly by trade policy—has unearthed weakness in the equity market, with most pain felt under the market's surface.