When building a portfolio, advisors need to optimize asset allocations and manage risk. But they also need to understand the trends happening in the market and the tools that can be leveraged to meet the moment.
Since the end of the “Yen Carry Trade” correction in August, bullish positioning has returned with a vengeance, yet two key risks face investors as September begins. While bullish positioning and optimism are ingredients for a rising market, there is more to this story.
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.
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.
Gold is typically an asset that doesn’t generate yield, but there are ETFs that deliver yield on a gold position through options.
The latest employment report showed 142,000 jobs were added in August, falling short of the expected addition of 164,000 new jobs. Meanwhile, the unemployment rate ticked lower to 4.2%.
In a recent discussion with Adam Taggart via Thoughtful Money, we quickly touched on the similarities between the U.S. and Japanese monetary policies around the 11-minute mark. However, that discussion warrants a deeper dive. As we will review, Japan has much to tell us about the future of the U.S. economically.
Private assets are the fastest-growing market in the financial world, but could be the most challenging field for ETF providers to penetrate.
Join the experts at VictoryShares and learn all about two strategies that leverage an innovative free cash flow investment approach that may help to align your portfolio for potential success.
After a decade of consistent outperformance, Japanese small caps began underperforming their large cap peers in 2018, a trend that has accelerated since 2023.
In this edition, Harold Evensky explores the challenges facing sustainable and active funds, the implications of the new DOL Fiduciary Rule, and the value of long-term performance projections. With candid observations and critical analysis--read on to gain perspective on navigating the complex world of investing, the importance of risk management, and the role of fiduciary advisors in securing your financial future.
Half your coworkers might have just spent August in Europe, but there were no holiday doldrums in the booming world of ETFs.
The US economic data released in early August not only triggered a brief, but dramatic episode of financial-market volatility. It also fueled an abnormal degree of instability in forecasts by leading Wall Street economists, suggesting that they, like the Federal Reserve, may have lost their strategic bearings.
China's economic transformation presents both challenges and opportunities for global markets.
The late Jack Bogle — father of the first index fund — famously loathed their exchange-traded offspring, warning that it only incentivize speculative trading among “fruitcakes, nut cases and lunatic fringe.” Fast forward to 2024, and critics warn a new generation of ETFs are designed to do exactly that.
While short-term fluctuations and sudden selloffs have tested the markets, key indicators such as corporate profits, employment data, and economic resilience have held firm.
Real gross domestic product (GDP) is comprised of four major subcomponents. In the Q2 GDP second estimate, three of the four components made positive contributions.
An extended period of elevated interest rates may have long-term implications for both consumers and businesses—affecting how investors value company shares.
Will 2030 DC plans perform better at preparing U.S. workers for retirement?
By incorporating these practical suggestions into your meetings, you can effectively leverage the power of likability and high-quality evidence to build trust and increase your assets under management.
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.
Midstream’s second quarter earnings calls reinforced the positive outlook for US natural gas demand driven in part by expected power demand from data centers. This note discusses the advantages of natural gas for data centers, additional factors contributing to demand growth, and how midstream is uniquely positioned to benefit from these trends.
The market’s 8.5% decline during August sent shockwaves through the media and investors. The drop raised concerns about whether this was the start of a larger correction or a temporary pullback. However, a powerful reversal, driven by investor buying and corporate share repurchases, halted the decline, leading many to wonder if the worst is behind us.
This week, before she accepted the Democratic Party’s nomination for president, Vice President Kamala Harris threw her support behind President Joe Biden’s tax proposals for 2025, which include a steep 44.6% capital gains rate and an unprecedented 25% tax on unrealized gains.
Recent economic data points have been mixed. On the more positive side of the ledger, there’s evidence that inflation is cooling and consumer spending remains sturdy. Conversely, the jobs market is cooling.
It’s widely expected that the Federal Reserve will cut interest rates next month, perhaps by as much as 50 basis points. That would potentially provide a much needed positive jolt to bonds and fixed income ETFs.
Call me Ishmael. The biggest question about an investment banking client like Elon Musk is whether he turns out to be a Moby Dick.
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.
FINRA has released new data for margin debt, now available through July. The latest debt level is at $810.84 billion, its highest level since February 2022. Margin debt is up 0.2% month-over-month (MoM) and up 14.2% year-over-year (YoY). However, after adjusting for inflation, debt level is up 0.1% MoM and 11.0% YoY.
Bond traders are taking on a record amount of risk as they bet big on a Treasury market rally fueled by expectations the Federal Reserve will embark on its first interest-rate cut in more than four years.
Strategas’ Todd Sohn highlights the industry’s chase for record inflows and discusses everything from recent ETF filings to market concentration risk. VettaFi’s Kirsten Chang talks new ETF launches, small caps, REITs, and much more.
Travel on all roads and streets decreased in June. The 12-month moving average was down 0.03% month-over-month and was up 1.40% year-over-year. If we factor in population growth, the 12-month MA of the civilian population-adjusted data (age 16-and-over) was down 0.10% MoM and up 0.78% YoY.
Silver is an important component of solar photovoltaic (PV) panels, meaning that for China to reach its ambitious climate targets, it must import massive amounts of the white metal. In June alone, China spent over $228 million on silver, a new monthly record based on Bloomberg data going back to 2009.
This year’s presentation by Chair Jerome Powell is eagerly awaited due to the economic fluidity and financial volatility that the US has been experiencing, and its spillovers to the rest of the world.
Powell will hint at normalizing monetary policy, but at a measured pace.
Markets were recently rattled by concerns the U.S. may slip into recession, but it's not clear that those fears are justified.
Most DC plan participants pursue retirement readiness unassisted, but few grasp what’s required, according to our latest survey.
Portfolio Manager Jeremy Sutch, CFA, and Chief Investment Officer Sean Taylor assess the issues besetting the region’s key markets—from domestic challenges to geopolitical headwinds—as well as their structural strengths, and whether prospects may brighten with the onset of a U.S. rate-cutting cycle.
In a part of the US market for exchange-traded funds that has become known for increasingly risky products, a new offering has debuted that stands out in the crowd.
We manage risk within our strategic, long-term allocations based on diversification across equity, fixed income, and alternative assets.
Is private equity a problem? To what extent could this class of investment funds, which manages almost $9 trillion worldwide on behalf of everyone from wealthy individuals to California teachers, cause or propagate the next financial crisis?
Your portfolio can be the key to managing cash and maintaining flexibility.
Technology stocks led the market for much of this year, with AI euphoria in full effect. Recent cracks in the momentum caused some investors to question whether the enthusiasm has been exhausted. Technology investors and active stock pickers Tony Kim and Reid Menge offer answers ― and an optimistic outlook.
Bond prices whipsawed over the past month as volatility spiked across markets. What's next for fixed income markets?
When two popular trades, such as buying US big tech stocks and selling the Japanese yen, are unraveling at the same time, investors naturally think they are somehow related.
On this episode of the “ETF of the Week” podcast, VettaFi’s Head of Research Todd Rosenbluth discussed the ALPS O’Shares US Small-Cap Quality Dividend ETF (OUSM) with Chuck Jaffe of “Money Life.” The pair talked about several topics regarding the fund to give investors a deeper understanding of the ETF overall.
I can't let this month pass without noting a significant anniversary: This is the 25th year I’ve been writing Thoughts from the Frontline. You can visit the archive and see every issue since January 2001.
On Monday morning, investors woke up to plunging stock markets as the “Yen Carry Trade” blew up. While media headlines suggested the sell-off was due to fears of a recession, slowing employment growth, or fears over Israel and Iran, such is not the case.
On Monday, global equities and digital assets underwent a dramatic selloff as the unwinding of the Japanese yen carry trade rattled markets. The S&P Global Broad Market Index (BMI), which measures the performance of more than 14,000 stocks around the world, retreated 3.3%, its worst trading day in over two years.
It looks like investors have been adding shares of Amazon.com to their carts in recent weeks.
During volatile markets, investors may flock to safe haven sectors like utilities that can weather a recession.
With investors reacting to the worst global stock market sell-off since the early days of the COVID pandemic in 2020, Portfolio Manager Oliver Blackbourn and Global Head of Multi-Asset Adam Hetts consider the all-important question – what next?
As the late George HW Bush once said, “What is it about August?”
Savvy advisors that blend classic prospecting methods with modern tech are not only reviving successful strategies from the past but are also setting the stage for sustainable future growth.
Investor complacency is often blamed when rising stock markets ignore potentially unsettling data for weeks and then viciously sell off. But this very human-sounding characteristic mostly isn’t in the minds of traders: It’s baked into the structure of modern investment strategies.
Corporate borrowers are selling investment-grade bonds at the fastest clip since 2020 as companies take advantage of lower yields to issue debt before the November election.
Join us for an insightful webinar where we delve into the transformative impact of Artificial Intelligence (AI) on society and explore innovative investment strategies that leverage this groundbreaking technology.
On days like Monday’s dramatic selloff, which capped a three-week loss of $6.4 trillion in global wealth, personal finance experts usually have the same advice for wary retail investors:
Semiconductor stocks remain the leaders of this market, but investors might admit it looks pretty extended at the moment.
Roth conversions, when executed with precision and strategic foresight, can significantly enhance a client’s financial plan.
With stock markets plunging around the world, traders are talking up the prospect of an emergency interest-rate cut from the Federal Reserve after the US central bank passed up the opportunity to ease policy last week. Not only is this highly unlikely, it would be counterproductive.
Cryptocurrencies reeled from a bout of risk aversion in global markets on Monday, at one point sending Bitcoin down more than 16% and saddling second-ranked Ether with the steepest fall since 2021.
When growth slows and rates fall, what will happen to an asset class with long-dated cash flows that are not very economically sensitive? Well, it is likely to strongly outperform. Ergo the short-term outlook for growth relative to value/small caps appear to be rosy.
Today’s passive index investing requires active choices, as customization and innovations in index funds have resulted in new considerations for investors and the potential for greater control.
Reasonable Treasury debt ratios and more than enough buyers put Treasuries in a much better light than is commonly heard.
It’s hard to work daily with and for someone who clearly doesn’t like you or want you to succeed.
Private equity has been in the news frequently in the last few weeks, and not in a good way.
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.
As gold prices continue to rise, investors may want to consider gold miners, which are offering incredible value.
President Joe Biden’s withdrawal and endorsement of Vice President Kamala Harris has sent shockwaves through the political establishment, and while former President Donald Trump remains the frontrunner, the wind has certainly shifted in Harris’s favor.
Yes, the market could continue to rotate massively from large-cap to small and mid-capitalization companies. However, given the current levels of bullish sentiment and allocations against a backdrop of weakening economic data and widening spreads, this suggests the current rotation may be nothing more than a significant short-covering rally.
With growth moderating and inflation cooling, the US seems on track for a soft landing—as markets digest a stream of incoming information. Equity performance may be on the verge of broadening beyond a handful of stocks, and still-sizable bond yields bolster return potential.
The equities market could see small-caps outrunning their large-cap peers as more investors are shifting to small-cap stocks.
Qraft Technologies took AI-driven investment products to the next level with the launch of the LG-QRAFT AI-Powered U.S. Large Cap Core ETF (LQAI) in November of 2023. The firm partnered with LG AI Research, an artificial intelligence (AI) research hub of South Korea's LG Group, to create LQAI.
While it's too early to declare small caps' recent outperformance as a meaningful trend shift, we continue to think high-quality companies and industries will likely perform well.
Over the last few years, a handful of “Mega-Capitalization” (mega-market capitalization) stocks have dominated market returns. The question is whether that dominance will continue and if the same companies remain the leaders.
Financial advisors are increasingly turning to social media platforms to expand their client base. But in today’s rapidly evolving digital landscape, the traditional marketing funnel model – comprising awareness, engagement, and conversion stages – often falls short when applied to these platforms.
A recent Financial Times opinion piece laid out how illiquidity makes private equity hazardous for investors. The Bank of England’s Nathanaël Benjamin warns private equity illiquidity is a systemic risk to the financial system.
The mortgage lock-in effect ended in the Levin household shortly before my in-laws arrived from Mexico to celebrate my daughter’s birthday at our home in the Miami area. As usual, my wife and I had no place to put them, and they had to get a room at a Courtyard Marriott.
Amidst a widespread deterioration in the economic landscape, it is crucial to underscore the current detrimental roles of monetary and fiscal policy.
The stock market is not a balloon that gets bigger when money “flows into” it. It doesn’t get smaller because money “flows out” of it. Holding the number of shares constant, the stock market gets bigger if investors pay a higher price for those shares. Period.
Fed speakers will deny any notion that its monetary policy aims in part to help the government fund her debts. Regardless of what they say, we are already in an age of fiscal dominance. Monetary policy must consider the nation’s debt situation.
Artificial Intelligence has captured investor imagination. As more and more companies look to leverage new technology, investors need a broad understanding of the AI and robotics space.
Join the experts at VettaFi for a free educational webcast that will unpack how AI and robotics performed in the first half of 2024 with an eye toward opportunities in the second half.
The incorporation of artificial intelligence in the crypto space could push AI-focused exchange-traded funds even higher.
With both economic and inflation data continuing to weaken, expectations of Fed rate cuts are rising. Notably, following the latest consumer price index (CPI) report, which was weaker than expected, the odds of Fed rate cuts by September rose sharply. According to the CME, the odds of a 0.25% cut to the Fed rate are now 90%.
A seismic shift is taking place in corporate America as even more companies announce plans to relocate from blue states to more business-friendly jurisdictions like Texas.
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.
Artificial intelligence is set to become a game changer for the electric power industry, notes Pavel Molchanov, Managing Director, Energy Analyst, Equity Research.
The barbarians are back at the gates. Morgan Stanley and Goldman Sachs Group Inc. are confident that their most important clients are about to get active after a long spell on the sidelines and help goose the long-awaited revival in investment banking fees.
Leveraged and Inverse Funds
ETFs and Portfolio Construction: trends, managing risk and optimizing asset allocation
When building a portfolio, advisors need to optimize asset allocations and manage risk. But they also need to understand the trends happening in the market and the tools that can be leveraged to meet the moment.
Risks Facing Bullish Investors As September Begins
Since the end of the “Yen Carry Trade” correction in August, bullish positioning has returned with a vengeance, yet two key risks face investors as September begins. While bullish positioning and optimism are ingredients for a rising market, there is more to this story.
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.
Portable Alpha: Divorcing and Remarrying Alpha and Beta
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.
Why Now & How: 3 ETF Ways to Access Gold Ahead of Rate Move
Gold is typically an asset that doesn’t generate yield, but there are ETFs that deliver yield on a gold position through options.
Employment Report: 142K Jobs Added in August, Less Than Expected
The latest employment report showed 142,000 jobs were added in August, falling short of the expected addition of 164,000 new jobs. Meanwhile, the unemployment rate ticked lower to 4.2%.
Japanese Style Policies And The Future Of America
In a recent discussion with Adam Taggart via Thoughtful Money, we quickly touched on the similarities between the U.S. and Japanese monetary policies around the 11-minute mark. However, that discussion warrants a deeper dive. As we will review, Japan has much to tell us about the future of the U.S. economically.
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.
The Next Generation of Free Cash Flow Investing
Join the experts at VictoryShares and learn all about two strategies that leverage an innovative free cash flow investment approach that may help to align your portfolio for potential success.
Small Wonders: Overlooked Japan Small Caps Poised for Resurgence
After a decade of consistent outperformance, Japanese small caps began underperforming their large cap peers in 2018, a trend that has accelerated since 2023.
Navigating the Investment Landscape: Insights and Warnings
In this edition, Harold Evensky explores the challenges facing sustainable and active funds, the implications of the new DOL Fiduciary Rule, and the value of long-term performance projections. With candid observations and critical analysis--read on to gain perspective on navigating the complex world of investing, the importance of risk management, and the role of fiduciary advisors in securing your financial future.
Sizzling ETF Flows in Manic Markets Fuel a $609 Billion Haul
Half your coworkers might have just spent August in Europe, but there were no holiday doldrums in the booming world of ETFs.
Analytical Volatility Is Worse than Market Whiplash
The US economic data released in early August not only triggered a brief, but dramatic episode of financial-market volatility. It also fueled an abnormal degree of instability in forecasts by leading Wall Street economists, suggesting that they, like the Federal Reserve, may have lost their strategic bearings.
China's Growth Evolution: Opportunities and Challenges for the Global Economy
China's economic transformation presents both challenges and opportunities for global markets.
One-Day-Only Funds Are Jack Bogle’s Nightmare Brought to Life
The late Jack Bogle — father of the first index fund — famously loathed their exchange-traded offspring, warning that it only incentivize speculative trading among “fruitcakes, nut cases and lunatic fringe.” Fast forward to 2024, and critics warn a new generation of ETFs are designed to do exactly that.
Fundamentals Matter
While short-term fluctuations and sudden selloffs have tested the markets, key indicators such as corporate profits, employment data, and economic resilience have held firm.
An Inside Look at the Q2 2024 GDP Second Estimate
Real gross domestic product (GDP) is comprised of four major subcomponents. In the Q2 GDP second estimate, three of the four components made positive contributions.
Debt Burdens, Elevated Rates to Test Equity Investors
An extended period of elevated interest rates may have long-term implications for both consumers and businesses—affecting how investors value company shares.
8 Ways DC Plans Are Likely to Change by 2030
Will 2030 DC plans perform better at preparing U.S. workers for retirement?
Unlock Massive AUM: The Secret Beyond Numbers
By incorporating these practical suggestions into your meetings, you can effectively leverage the power of likability and high-quality evidence to build trust and increase your assets under management.
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.
AI, Natural Gas & Midstream’s Emerging Opportunities
Midstream’s second quarter earnings calls reinforced the positive outlook for US natural gas demand driven in part by expected power demand from data centers. This note discusses the advantages of natural gas for data centers, additional factors contributing to demand growth, and how midstream is uniquely positioned to benefit from these trends.
Market Decline Over As Investors Buy The Dip
The market’s 8.5% decline during August sent shockwaves through the media and investors. The drop raised concerns about whether this was the start of a larger correction or a temporary pullback. However, a powerful reversal, driven by investor buying and corporate share repurchases, halted the decline, leading many to wonder if the worst is behind us.
How Price Controls Could Harm the U.S. Economy Under a President Harris
This week, before she accepted the Democratic Party’s nomination for president, Vice President Kamala Harris threw her support behind President Joe Biden’s tax proposals for 2025, which include a steep 44.6% capital gains rate and an unprecedented 25% tax on unrealized gains.
Corporate Bond Outlook Is Solid
Recent economic data points have been mixed. On the more positive side of the ledger, there’s evidence that inflation is cooling and consumer spending remains sturdy. Conversely, the jobs market is cooling.
Bonds Beckon as Rate Cuts Near
It’s widely expected that the Federal Reserve will cut interest rates next month, perhaps by as much as 50 basis points. That would potentially provide a much needed positive jolt to bonds and fixed income ETFs.
Is Elon Musk the Bankers’ Moby Dick? Not Yet
Call me Ishmael. The biggest question about an investment banking client like Elon Musk is whether he turns out to be a Moby Dick.
August 2024 Active Management Insights: Positive Outlook for Cyclical and Value-Oriented Stocks
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.
Margin Debt Up 0.2% in July; Highest Since February 2022
FINRA has released new data for margin debt, now available through July. The latest debt level is at $810.84 billion, its highest level since February 2022. Margin debt is up 0.2% month-over-month (MoM) and up 14.2% year-over-year (YoY). However, after adjusting for inflation, debt level is up 0.1% MoM and 11.0% YoY.
Bond Traders Amassing Historic Level of Risk on Rate-Cut Bets
Bond traders are taking on a record amount of risk as they bet big on a Treasury market rally fueled by expectations the Federal Reserve will embark on its first interest-rate cut in more than four years.
Strategas’ Todd Sohn: Summer of ETFs
Strategas’ Todd Sohn highlights the industry’s chase for record inflows and discusses everything from recent ETF filings to market concentration risk. VettaFi’s Kirsten Chang talks new ETF launches, small caps, REITs, and much more.
America's Driving Habits as of June 2024
Travel on all roads and streets decreased in June. The 12-month moving average was down 0.03% month-over-month and was up 1.40% year-over-year. If we factor in population growth, the 12-month MA of the civilian population-adjusted data (age 16-and-over) was down 0.10% MoM and up 0.78% YoY.
The Fine Line Between Content Moderation and Censorship in the Digital Age
Silver is an important component of solar photovoltaic (PV) panels, meaning that for China to reach its ambitious climate targets, it must import massive amounts of the white metal. In June alone, China spent over $228 million on silver, a new monthly record based on Bloomberg data going back to 2009.
The Stakes Are High for Powell and the Fed at Jackson Hole
This year’s presentation by Chair Jerome Powell is eagerly awaited due to the economic fluidity and financial volatility that the US has been experiencing, and its spillovers to the rest of the world.
A Script for Jackson Hole
Powell will hint at normalizing monetary policy, but at a measured pace.
Schwab Market Perspective: Spinning
Markets were recently rattled by concerns the U.S. may slip into recession, but it's not clear that those fears are justified.
Should Retirement Income Planning Be “Do It Yourself” or “Just Do It for Me”?
Most DC plan participants pursue retirement readiness unassisted, but few grasp what’s required, according to our latest survey.
Latin America's Long-Term Potential
Portfolio Manager Jeremy Sutch, CFA, and Chief Investment Officer Sean Taylor assess the issues besetting the region’s key markets—from domestic challenges to geopolitical headwinds—as well as their structural strengths, and whether prospects may brighten with the onset of a U.S. rate-cutting cycle.
Wall Street Just Got Its Most Volatile ETF as Risky Bets Boom
In a part of the US market for exchange-traded funds that has become known for increasingly risky products, a new offering has debuted that stands out in the crowd.
The August 2024 Dashboard: Our Three Layers of Risk Management
We manage risk within our strategic, long-term allocations based on diversification across equity, fixed income, and alternative assets.
Is Private Equity a Threat? We Need a Better Answer
Is private equity a problem? To what extent could this class of investment funds, which manages almost $9 trillion worldwide on behalf of everyone from wealthy individuals to California teachers, cause or propagate the next financial crisis?
Why the “No Debt” Approach Isn’t Optimal for Every Investor
Your portfolio can be the key to managing cash and maintaining flexibility.
Can AI and Technology Stocks Keep on Keeping On? An Expert Take
Technology stocks led the market for much of this year, with AI euphoria in full effect. Recent cracks in the momentum caused some investors to question whether the enthusiasm has been exhausted. Technology investors and active stock pickers Tony Kim and Reid Menge offer answers ― and an optimistic outlook.
Bond Market: Shaken, Not Stirred
Bond prices whipsawed over the past month as volatility spiked across markets. What's next for fixed income markets?
How Big Is the Yen Carry Trade, Really?
When two popular trades, such as buying US big tech stocks and selling the Japanese yen, are unraveling at the same time, investors naturally think they are somehow related.
ALPS O’Shares US Small-Cap Quality Dividend ETF (OUSM)
On this episode of the “ETF of the Week” podcast, VettaFi’s Head of Research Todd Rosenbluth discussed the ALPS O’Shares US Small-Cap Quality Dividend ETF (OUSM) with Chuck Jaffe of “Money Life.” The pair talked about several topics regarding the fund to give investors a deeper understanding of the ETF overall.
25 Years and Counting
I can't let this month pass without noting a significant anniversary: This is the 25th year I’ve been writing Thoughts from the Frontline. You can visit the archive and see every issue since January 2001.
Yen Carry Trade Blows Up Sparking Global Sell-Off
On Monday morning, investors woke up to plunging stock markets as the “Yen Carry Trade” blew up. While media headlines suggested the sell-off was due to fears of a recession, slowing employment growth, or fears over Israel and Iran, such is not the case.
Understanding the Yen Carry Trade Impact on World Markets
On Monday, global equities and digital assets underwent a dramatic selloff as the unwinding of the Japanese yen carry trade rattled markets. The S&P Global Broad Market Index (BMI), which measures the performance of more than 14,000 stocks around the world, retreated 3.3%, its worst trading day in over two years.
Is Amazon Primed for More Upside or a Bearish Reversal?
It looks like investors have been adding shares of Amazon.com to their carts in recent weeks.
Recession or Not, Utilities Can Thrive in Current Market
During volatile markets, investors may flock to safe haven sectors like utilities that can weather a recession.
Quick View: Navigating Market Volatility
With investors reacting to the worst global stock market sell-off since the early days of the COVID pandemic in 2020, Portfolio Manager Oliver Blackbourn and Global Head of Multi-Asset Adam Hetts consider the all-important question – what next?
Why Did the Market Drop So Fast? Making Rational Sense of an Irrational Market
As the late George HW Bush once said, “What is it about August?”
Classic Rewind: How RIA Prospecting Tactics From the Past Are Making a Comeback
Savvy advisors that blend classic prospecting methods with modern tech are not only reviving successful strategies from the past but are also setting the stage for sustainable future growth.
Beware the Bombs Baked Into Modern Stock Markets
Investor complacency is often blamed when rising stock markets ignore potentially unsettling data for weeks and then viciously sell off. But this very human-sounding characteristic mostly isn’t in the minds of traders: It’s baked into the structure of modern investment strategies.
Corporate America Stampedes Into Debt as Sales Pass $1 Trillion
Corporate borrowers are selling investment-grade bonds at the fastest clip since 2020 as companies take advantage of lower yields to issue debt before the November election.
An Advisor’s Guide to AI ETFs
Join us for an insightful webinar where we delve into the transformative impact of Artificial Intelligence (AI) on society and explore innovative investment strategies that leverage this groundbreaking technology.
What Bankers Say You Should (and Shouldn’t) Do When Markets Crash
On days like Monday’s dramatic selloff, which capped a three-week loss of $6.4 trillion in global wealth, personal finance experts usually have the same advice for wary retail investors:
Semiconductors: Riding the AI Wave or Ready to Wipe Out?
Semiconductor stocks remain the leaders of this market, but investors might admit it looks pretty extended at the moment.
Simplifying Roth Conversions: Insights for Financial Advisors
Roth conversions, when executed with precision and strategic foresight, can significantly enhance a client’s financial plan.
An Emergency Fed Rate Cut Would Be A Mistake
With stock markets plunging around the world, traders are talking up the prospect of an emergency interest-rate cut from the Federal Reserve after the US central bank passed up the opportunity to ease policy last week. Not only is this highly unlikely, it would be counterproductive.
Bitcoin Plunges, Ether Has Worst Drop Since 2021 as Crypto Sinks
Cryptocurrencies reeled from a bout of risk aversion in global markets on Monday, at one point sending Bitcoin down more than 16% and saddling second-ranked Ether with the steepest fall since 2021.
Quant Street July 2024 Investor Letter: Momentum Crash
When growth slows and rates fall, what will happen to an asset class with long-dated cash flows that are not very economically sensitive? Well, it is likely to strongly outperform. Ergo the short-term outlook for growth relative to value/small caps appear to be rosy.
Index Investing as an Active Decision: Implications for Equity Investors
Today’s passive index investing requires active choices, as customization and innovations in index funds have resulted in new considerations for investors and the potential for greater control.
U.S. Treasuries and the Fiscal Situation
Reasonable Treasury debt ratios and more than enough buyers put Treasuries in a much better light than is commonly heard.
Navigating Differences in Personality Types
It’s hard to work daily with and for someone who clearly doesn’t like you or want you to succeed.
Pension Funds Are Hooked on Private Equity, No Matter the Risks
Private equity has been in the news frequently in the last few weeks, and not in a good way.
Maximizing 401(k) Plans: How Financial Advisors Can leverage the DOL’s Target-Date Tips
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.
How AI Is Transforming Investing
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.
As Gold Prices Climb, Miners Are Offering Incredible Value
As gold prices continue to rise, investors may want to consider gold miners, which are offering incredible value.
How 2024’S Election Could Reshape Your Portfolio
President Joe Biden’s withdrawal and endorsement of Vice President Kamala Harris has sent shockwaves through the political establishment, and while former President Donald Trump remains the frontrunner, the wind has certainly shifted in Harris’s favor.
The Bull Market – Could It Just Be Getting Started?
Yes, the market could continue to rotate massively from large-cap to small and mid-capitalization companies. However, given the current levels of bullish sentiment and allocations against a backdrop of weakening economic data and widening spreads, this suggests the current rotation may be nothing more than a significant short-covering rally.
Capital Markets Outlook 3Q 2024: Distinguishing Signal from Noise
With growth moderating and inflation cooling, the US seems on track for a soft landing—as markets digest a stream of incoming information. Equity performance may be on the verge of broadening beyond a handful of stocks, and still-sizable bond yields bolster return potential.
Shift From Large to Small-Caps Could Be in Early Stages
The equities market could see small-caps outrunning their large-cap peers as more investors are shifting to small-cap stocks.
Qraft Teams With LG AI Research to Offer Pioneering AI-Powered ETF
Qraft Technologies took AI-driven investment products to the next level with the launch of the LG-QRAFT AI-Powered U.S. Large Cap Core ETF (LQAI) in November of 2023. The firm partnered with LG AI Research, an artificial intelligence (AI) research hub of South Korea's LG Group, to create LQAI.
Brea(d)th of Life: Market Leadership Shifts
While it's too early to declare small caps' recent outperformance as a meaningful trend shift, we continue to think high-quality companies and industries will likely perform well.
Can Mega-Capitalization Stocks Continue Their Dominance?
Over the last few years, a handful of “Mega-Capitalization” (mega-market capitalization) stocks have dominated market returns. The question is whether that dominance will continue and if the same companies remain the leaders.
Six Reasons to Shift from Traditional Marketing Funnels, and What to Do Instead
Financial advisors are increasingly turning to social media platforms to expand their client base. But in today’s rapidly evolving digital landscape, the traditional marketing funnel model – comprising awareness, engagement, and conversion stages – often falls short when applied to these platforms.
Private Equity Is Illiquid by Design. Why Worry About It?
A recent Financial Times opinion piece laid out how illiquidity makes private equity hazardous for investors. The Bank of England’s Nathanaël Benjamin warns private equity illiquidity is a systemic risk to the financial system.
I Gave Up a 2.6% Mortgage to Upgrade. Will I Regret It?
The mortgage lock-in effect ended in the Levin household shortly before my in-laws arrived from Mexico to celebrate my daughter’s birthday at our home in the Miami area. As usual, my wife and I had no place to put them, and they had to get a room at a Courtyard Marriott.
Quarterly Review and Outlook Second Quarter 2024
Amidst a widespread deterioration in the economic landscape, it is crucial to underscore the current detrimental roles of monetary and fiscal policy.
You’re Soaking in It
The stock market is not a balloon that gets bigger when money “flows into” it. It doesn’t get smaller because money “flows out” of it. Holding the number of shares constant, the stock market gets bigger if investors pay a higher price for those shares. Period.
Fiscal Dominance Is Here
Fed speakers will deny any notion that its monetary policy aims in part to help the government fund her debts. Regardless of what they say, we are already in an age of fiscal dominance. Monetary policy must consider the nation’s debt situation.
What to Expect in Robotics and AI in the Second Half of 2024
Artificial Intelligence has captured investor imagination. As more and more companies look to leverage new technology, investors need a broad understanding of the AI and robotics space.
Join the experts at VettaFi for a free educational webcast that will unpack how AI and robotics performed in the first half of 2024 with an eye toward opportunities in the second half.
AI Adoption in the Crypto Space Can Push This ETF Even Higher
The incorporation of artificial intelligence in the crypto space could push AI-focused exchange-traded funds even higher.
Fed Rate Cuts – A Signal To Sell Stocks And Buy Bonds?
With both economic and inflation data continuing to weaken, expectations of Fed rate cuts are rising. Notably, following the latest consumer price index (CPI) report, which was weaker than expected, the odds of Fed rate cuts by September rose sharply. According to the CME, the odds of a 0.25% cut to the Fed rate are now 90%.
Why The Smart Money Is Heading To Texas
A seismic shift is taking place in corporate America as even more companies announce plans to relocate from blue states to more business-friendly jurisdictions like Texas.
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.
When It Comes to U.S. Electricity Demand, Chatbots Matter More Than Cars
Artificial intelligence is set to become a game changer for the electric power industry, notes Pavel Molchanov, Managing Director, Energy Analyst, Equity Research.
Wall Street Senses the Barbarians Are Finally at the Gates
The barbarians are back at the gates. Morgan Stanley and Goldman Sachs Group Inc. are confident that their most important clients are about to get active after a long spell on the sidelines and help goose the long-awaited revival in investment banking fees.