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.
As market sensitivity to economic data continues, investors would do well to consider active strategies amidst ongoing volatility.
The world’s biggest asset manager is taking some chips off the table as markets enter a “new phase” of turbulence ahead of a Federal Reserve interest rate cutting cycle and the US presidential election.
Private assets are the fastest-growing market in the financial world, but could be the most challenging field for ETF providers to penetrate.
A number of myths exist about value investing as it pertains to timing the economic cycle, interest rates, and elections.
Valid until the market close on September 30, 2024
This article provides an update on the monthly moving averages we track for the S&P 500 and the Ivy Portfolio after the close of the last business day of the month.
Build a dividend growth portfolio. The stock market as measured by the S&P is currently at an all-time high which makes it very challenging to try to build a quality dividend growth portfolio.
Over nearly three decades, I’ve been dedicated to the sport of running. For the last five years, I chased the elusive goal of qualifying for the Boston Marathon, my ultimate aspiration. It wasn’t until I sought the expertise of a professional coach that I finally achieved this dream.
Active management can lead to high portfolio turnover and a higher tax bill. Wealth managers might feel that an active strategy could be too inefficient for clients who are sensitive to taxes. Find out how implementing a core-satellite portfolio with a direct indexing core may improve tax efficiency.
On this episode of the “ETF of the Week” podcast, VettaFi’s Head of Research Todd Rosenbluth discussed the Capital Group Municipal Income ETF (CGMU) 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.
Advisors are offering customized holistic wealth management to their clients and their families to help ensure an orderly transition of wealth
When I was in high school, I really wanted a car. My loving parents took every situation as an opportunity to teach. They told me that if I wanted a car, I would have to earn it.
For bond investors looking to the near- and longer-term, Matt Eagan stepped through considerations and opportunities in the global market.
While strategy provides direction, a strong culture is the foundation that supports and sustains an organization’s success. Culture influences every aspect of an organization and defines the purpose and values that guide the actions of employees.
A recent mid-year strategist pulse check from Natixis revealed where strategists believe the top opportunities exist across markets.
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.
The bond-market rally escalated Friday after a report showed that job growth slowed sharply last month, further stoking speculation that the Federal Reserve will start aggressively cutting interest rates to keep the economy from stalling.
In this article, Russ Koesterich discusses factors behind gold’s impressive performance year to date.
With tech stocks making up a substantial portion of broad market indexes, investors may wonder what will happen when the tech rally ends.
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.
The economic data is coming in very good for markets. Starting with GDP, we observed a modest growth rate of around 2% in the first half of the year. While not spectacular, it’s far from recessionary conditions. This level of growth, with slight inventory accumulation, suggests a stable economic backdrop.
For taxable investors, an appreciating portfolio can be a mixed blessing. But regular loss harvesting isn’t the only way to reduce your portfolio’s tax bill, especially as its value rises. We share some important tax-management techniques for the future.
Experts from the third-largest ETF manager by AUM make their predictions regarding active, retail, and inheritances.
Join the experts at Teucrium for a no-cost educational webcast on July 18th at 2pm ET and learn how you can use agriculture ETFs to position your model portfolios for inflation.
Explaining Strong Returns in the Face of Value Headwinds.
Longer duration Treasuries have been mired in a bear market since 2020 but could finally start to see a reversal of fortune.
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.
I have been looking forward to writing this blog for a long time. I joined Russell Investments on July 12, 2004 and now that it is my 20th anniversary, I feel it’s the right moment to share some of what I have learned along the way.
The boom in portfolio trading is starting to creep into the market for state and local government debt.
Dimensional’s Kaitlin Hendrix explains the firm’s new unified managed account platform, which enables financial advisors to scale with Dimensional or non-Dimensional ETF model management and customize with Dimensional SMAs. VettaFi’s Cinthia Murphy highlights the top 20 active ETFs by inflows in 2024.
The mid- to long-term costs of missed opportunities by staying in cash mean investors should consider moving off the cash sidelines.
June of 2024 was a good month for financial markets. Leading the pack were (again) technology stocks, with the NASDAQ up 6% on the month. Close in second place were emerging market ex-China stocks, largely driven by India, Taiwan, and South Korea, all of which had large rallies in the month.
The Generation X report released by Natixis Investment Managers included a check of investment sentiment and opportunities for advisors.
In this piece, I demonstrate that small-cap equities become increasingly attractive for investors with longer investment horizons.
Looking to assess your portfolio for the current inflation outlook? Natixis Investment Managers' Cyclicality vs. Inflation outlook can help.
As an advisor, you know that no two clients are alike. Each has their own financial goals, risk tolerance and opinion on how they want to invest.
Macro worries meet AI wonderwall. Stocks have managed to climb a wall of macro worries, thanks to largely solid earnings that we believe can expand beyond AI beneficiaries and continue to support prices. As Q3 begins, we look for:
The growing popularity of alternatives creates increased demand for private assets, with one surprising category above all.
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.
High-yield credit is experiencing strong inflows and investor confidence, potentially offering attractive returns and reduced volatility compared to other risk assets.
Traders are lavishing billions of dollars on quant-powered stock trades, boosting an investing style that’s struggled to gain traction in an era when simple bets on traditional large-cap indexes have paid off handsomely.
In periods of positive stock/bond correlations, the case for diversified sources of return is much clearer. With stocks and bonds now showing their strongest positive correlation in almost 30 years, the natural diversification and risk protection that a traditional 60/40 portfolio offers is open to question.
Just as humans and other species have evolved and adapted over time, investors need to do the same to meet the challenges and opportunities of an ever-changing financial world.
It’s certainly a challenging time to be an investor. It's probably why a call for caution and diversification seems to be getting louder.
The further acceleration and broadening of corporate profit growth supports RBA’s bullish near-term outlook for many regions and sectors of the stock market. However, when constructing portfolios, it has paid to separate the equity asset allocation decision from the equity selection decision.
Inflation is not fun. And—for the past 30 years—it has largely been a non-issue for consumers. That dynamic has changed. The relevant question is whether this is something persistent and meaningful or simply a fleeting feeling.
After a weak April, markets bounced back in May, with the S&P 500 staging a breathtaking rally in the final few hours of trading on Friday, May 31.
You’ve probably heard the term “direct indexing.” It seems like everyone is talking about it. You’ve probably also read that sales of direct indexing products are booming. But what exactly is direct indexing?
Investors betting on further US equity gains over the coming months will be disappointed, according to strategists at JPMorgan Chase & Co. Their peers at Morgan Stanley disagree.
The Federal Open Market Committee is always data-dependent. But the dependency is not always the same. There are times when inflation matters more than the labor market, and times when the situation is reversed. Every regime is unique. There is never a perfect corollary to a previous experience. This time is not different.
Ross Riskin's op-ed examines the potential drawbacks of using glide path portfolios in 529 college savings plans, particularly during high-interest rate environments. He suggests that money market options may offer better capital preservation for funds needed during college enrollment, emphasizing the shift from growth to stability in investment strategies.
VettaFi discusses changes in the MLP/midstream investment product landscape.
Technological disruption creates opportunity—and volatility. But there are ways to capture AI innovation while managing risk.
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.
Few advisors are prepared for the massive change coming to the advisory profession. It will not be a slow rollout over decades. In three to five years (if not sooner), how advisors do business will fundamentally change.
Private asset trends may not directly apply to many investors in publicly available strategies, but they can provide helpful data.
We explore how stabilization and growth of global markets may potentially shift preferences toward equities relative to bonds.
When it comes to the financial markets, investors have a litany of investment vehicles to choose from. The choices are nearly unlimited, from brokered certificates of deposit to complex derivative instruments.
Do presidents and prime ministers make economies? Or do economies make presidents and prime ministers? 2024 is a year of significant elections, with more voters heading to the polls worldwide than ever before.
Guessing the direction of interest rates is no easier than any other tactical or market timing decision. The yield on the benchmark 10-year Treasury note is just under 3.9%. That is about 100 basis points less than it was a few months ago. Fed policy is uncertain, inflation has not been fully controlled, and fiscal deficits loom as a long-term risk for yields to go higher.
From the end of March until the end of April, the market had a serious rethink about the path of monetary policy for the rest of 2024.
While much remains uncertain regarding rates, inflation, and the economy, quality stock investing proves a boon in any market environment.
If you’re not sure what direct indexing means, you’re not alone. Even after the recent growth, direct indexing remains relatively unknown. As our compliance team never fails to remind us, you can’t invest directly in an index. So what exactly is direct indexing?
Recent media coverage about how best to construct and manage portfolios has many wondering whether institutional investors are facing a paradigm shift right now.
How momentum and election cycles may shift the impact and timing of seasonal trends.
As non-profit investors set their investment and spending policies, it is important to consider their organizational circumstances during a market shock.
John Hancock Investment Management has added a new ETF to the company's growing lineup. JHHY primarily invests in high yield bonds.
One of the main advantages of constructing a portfolio of individual bonds is that it can be customized to meet the precise needs, wants, and objectives of the investor
How and why more advisors are tapping into alternatives—Tony Davidow, Senior Alternatives Investment Strategist at Franklin Templeton Institute, shares insights from a recent gathering.
High quality short-term bonds offer a number portfolio benefits while putting excess cash to work, but what's under the hood matters.
Looking to make a midcap allocation? Midcaps can stand out relative to small- or large-caps thanks to its combination of growth and size.
Much like the NFL draft, portfolio managers undergo rigorous evaluations. Their track record, investment process, and stock selection process are considered. Additionally, qualitative assessments, including manager interviews and onsite visits, offer insights into their character and decision-making prowess.
It’s not just about the balances in the accounts; it’s about helping our clients have a healthy relationship with money.
Tax-management strategies are crucial for clients, and they need today’s most sophisticated tools to relieve the tax burden for their clients. In this episode, my guest will dive into those strategies, such as tax-loss harvesting, and will explain how tax technology plays a significant role in driving value through smart, automated processes that find the right investment strategies for every client. We’ll also discuss why it’s important to deliver tax-loss harvesting with a purpose as well as some other hot topics affecting the advisory profession.
Most platforms for alternative investments are just concerned with getting advisors access to those investments. But advisors need education on the role alternatives can play in asset allocation and how creating portfolios that complement traditional assets drive business growth. My guest today will discuss:
A changing rate narrative now leaves advisors weighing the costs and benefits of taking on additional interest rate risk.
Diversification is a core principle of sound investing, but building a diversified portfolio is much easier in theory than in practice. In the recently published “2024 Diversification Landscape,” portfolio strategist Amy Arnott of Morningstar took a deep dive into the diversification potential of several major asset classes. As advisors build their clients’ portfolios, there are a few lessons from this research. First, it is impossible to predict which asset class will do well in any given year. Holding a variety of asset classes helps guard against being overly exposed to an area that falls out of favor. Second, while the correlation between stocks and bonds has increased, bonds still provide relatively strong diversification benefits. This means that the classic 60/40 portfolio is tough to beat, having produced returns of about 18% in 2023. Third, the asset classes with the strongest diversification benefits may come as a surprise to some advisors. Real estate is a questionable diversifier despite its popularity, while cash is a strong diversifier.
Over recent decades, the hot tech trends (from search to cellphones to social media to the digital economy and now to AI) have been a predominantly American story.
We believe high-yield munis carry additional risks, but are worth consideration by investors in higher tax brackets who are comfortable taking added risks.
Interpreting flows into ETFs and mutual funds sometimes feels an awful lot like reading tea leaves, but I love it.
Large international index funds do not account for geopolitical risk. Corruption has costs, and in this age of conflict with rising tensions in the Middle East, Russia, Ukraine and elsewhere, investors are faced with a daunting landscape while US markets are near highs. Should investors ride the momentum or transition and rotate to sectors that represent greater value and higher forward expected returns? The traditional international funds are attractively valued relative to the US but are fraught with risk. Today we will hear from Julie Cane and Chris Browne from Democracy Investments to discuss democracy as a factor in international investing.
With the right tech in place, advisors can access reliable, high-quality models that can be used repeatedly across their book of business.
So far this year, the US equity market has shown remarkable resilience and US inflation has remained sticky. Against this backdrop, a recent survey of our chief investment officers offers analyses and perspectives on key areas, such as Federal Reserve rate cut expectations, geopolitical risks, uncertain corporate earnings and opportunities in different asset classes.
Investing in private markets has obvious upsides, including potential higher returns, access to a broader opportunity set, and greater diversification.
Ali Dibadj, CEO, shares the industry topics he’s hearing most in conversations with asset allocators, family offices, end-clients, colleagues, investors, and others he meets around the world.
There are rules to follow if you set up a 529 college plan. If you don’t follow the rules, then the IRS will get involved, which is something you want to avoid.
While these tax-advantaged accounts are effective tools for meeting future education needs, a 2023 analysis found that overfunding a 529 plan can result in a large tax bill if money remains in the account after the beneficiary has graduated.
For investors looking to position their portfolios amid ongoing uncertainty, many options strategies benefit from increased volatility.
With an understanding of reversion to the mean, it is possible to contextualize market volatility for investors in a way that helps them view it more constructively.
Separately Managed Accounts
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.
August’s PMI Underscores Need for Active Management
As market sensitivity to economic data continues, investors would do well to consider active strategies amidst ongoing volatility.
BlackRock Dials Back Risk Across $131 Billion Model Portfolios
The world’s biggest asset manager is taking some chips off the table as markets enter a “new phase” of turbulence ahead of a Federal Reserve interest rate cutting cycle and the US presidential election.
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.
Don’t Fall for These 3 Value Investing Myths
A number of myths exist about value investing as it pertains to timing the economic cycle, interest rates, and elections.
Moving Averages: S&P Finishes August 2024 Up 2.3%
Valid until the market close on September 30, 2024
This article provides an update on the monthly moving averages we track for the S&P 500 and the Ivy Portfolio after the close of the last business day of the month.
How to Build a Dividend Growth Portfolio in an Overpriced Market
Build a dividend growth portfolio. The stock market as measured by the S&P is currently at an all-time high which makes it very challenging to try to build a quality dividend growth portfolio.
Why Use Model Portfolios? So Advisors Can Focus on What Matters Most
Over nearly three decades, I’ve been dedicated to the sport of running. For the last five years, I chased the elusive goal of qualifying for the Boston Marathon, my ultimate aspiration. It wasn’t until I sought the expertise of a professional coach that I finally achieved this dream.
Strengthen Your Client’s Core with Direct Indexing
Active management can lead to high portfolio turnover and a higher tax bill. Wealth managers might feel that an active strategy could be too inefficient for clients who are sensitive to taxes. Find out how implementing a core-satellite portfolio with a direct indexing core may improve tax efficiency.
Capital Group Municipal Income ETF (CGMU)
On this episode of the “ETF of the Week” podcast, VettaFi’s Head of Research Todd Rosenbluth discussed the Capital Group Municipal Income ETF (CGMU) 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.
Value of an Advisor: C is for Customized Experience and Family Wealth Planning
Advisors are offering customized holistic wealth management to their clients and their families to help ensure an orderly transition of wealth
From Sports Car to Minivan: Direct Indexing Can Help You Give Your Clients the Ride They Want
When I was in high school, I really wanted a car. My loving parents took every situation as an opportunity to teach. They told me that if I wanted a car, I would have to earn it.
A Second-Half Global Bond Market Outlook
For bond investors looking to the near- and longer-term, Matt Eagan stepped through considerations and opportunities in the global market.
Assessing Culture in the Evaluation of Investment Strategies
While strategy provides direction, a strong culture is the foundation that supports and sustains an organization’s success. Culture influences every aspect of an organization and defines the purpose and values that guide the actions of employees.
Where Strategists See Market Opportunities in Second Half
A recent mid-year strategist pulse check from Natixis revealed where strategists believe the top opportunities exist across markets.
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.
Bonds Surge After Soft Jobs Data Raises Pressure on Fed to Cut
The bond-market rally escalated Friday after a report showed that job growth slowed sharply last month, further stoking speculation that the Federal Reserve will start aggressively cutting interest rates to keep the economy from stalling.
Gold Shines, Defying Historical Relationships
In this article, Russ Koesterich discusses factors behind gold’s impressive performance year to date.
What Happens When the Tech Rally Ends?
With tech stocks making up a substantial portion of broad market indexes, investors may wonder what will happen when the tech rally ends.
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.
Indications of Easing Inflationary Pressures
The economic data is coming in very good for markets. Starting with GDP, we observed a modest growth rate of around 2% in the first half of the year. While not spectacular, it’s far from recessionary conditions. This level of growth, with slight inventory accumulation, suggests a stable economic backdrop.
Four Ways to Manage Taxes as Loss-Harvesting Opportunities Fade
For taxable investors, an appreciating portfolio can be a mixed blessing. But regular loss harvesting isn’t the only way to reduce your portfolio’s tax bill, especially as its value rises. We share some important tax-management techniques for the future.
State Street: Active, Retail, Inheritances to Drive Next $10T in ETF Assets
Experts from the third-largest ETF manager by AUM make their predictions regarding active, retail, and inheritances.
Navigating a Fourth Turning: Harvest Portfolio Resilience with Agriculture ETFs
Join the experts at Teucrium for a no-cost educational webcast on July 18th at 2pm ET and learn how you can use agriculture ETFs to position your model portfolios for inflation.
Equity Dislocation
Explaining Strong Returns in the Face of Value Headwinds.
Going Longer: Deeper Rotation Into Duration?
Longer duration Treasuries have been mired in a bear market since 2020 but could finally start to see a reversal of fortune.
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.
GRATEFUL for the Past 20 Years
I have been looking forward to writing this blog for a long time. I joined Russell Investments on July 12, 2004 and now that it is my 20th anniversary, I feel it’s the right moment to share some of what I have learned along the way.
Wall Street’s Portfolio-Trade Fad Hooks Slow-Moving Muni Market
The boom in portfolio trading is starting to creep into the market for state and local government debt.
Dimensional’s Kaitlin Hendrix Details New Unified Managed Account Platform
Dimensional’s Kaitlin Hendrix explains the firm’s new unified managed account platform, which enables financial advisors to scale with Dimensional or non-Dimensional ETF model management and customize with Dimensional SMAs. VettaFi’s Cinthia Murphy highlights the top 20 active ETFs by inflows in 2024.
An Advisor’s Guidebook for Moving Off the Cash Sidelines
The mid- to long-term costs of missed opportunities by staying in cash mean investors should consider moving off the cash sidelines.
Quant Street July 2024 Investor Letter: U.S. vs. International Divergence Continues
June of 2024 was a good month for financial markets. Leading the pack were (again) technology stocks, with the NASDAQ up 6% on the month. Close in second place were emerging market ex-China stocks, largely driven by India, Taiwan, and South Korea, all of which had large rallies in the month.
Advisor Opportunities for Generation X
The Generation X report released by Natixis Investment Managers included a check of investment sentiment and opportunities for advisors.
Small Cap Stocks for the Long Run
In this piece, I demonstrate that small-cap equities become increasingly attractive for investors with longer investment horizons.
Does Your Portfolio Align With Your Inflation Outlook?
Looking to assess your portfolio for the current inflation outlook? Natixis Investment Managers' Cyclicality vs. Inflation outlook can help.
Growing Your Business With Direct Indexing
As an advisor, you know that no two clients are alike. Each has their own financial goals, risk tolerance and opinion on how they want to invest.
Taking Stock: Q3 2024 Equity Market Outlook
Macro worries meet AI wonderwall. Stocks have managed to climb a wall of macro worries, thanks to largely solid earnings that we believe can expand beyond AI beneficiaries and continue to support prices. As Q3 begins, we look for:
The Surprising Top Investment Opportunity In Private Assets
The growing popularity of alternatives creates increased demand for private assets, with one surprising category above all.
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.
Navigating High-Yield Credit Opportunities in a Resilient Market
High-yield credit is experiencing strong inflows and investor confidence, potentially offering attractive returns and reduced volatility compared to other risk assets.
Retail Funds Dive Into Quant-Factor ETFs After $48 Billion Haul
Traders are lavishing billions of dollars on quant-powered stock trades, boosting an investing style that’s struggled to gain traction in an era when simple bets on traditional large-cap indexes have paid off handsomely.
Where to Go With Positive Stock/Bond Correlations
In periods of positive stock/bond correlations, the case for diversified sources of return is much clearer. With stocks and bonds now showing their strongest positive correlation in almost 30 years, the natural diversification and risk protection that a traditional 60/40 portfolio offers is open to question.
Evolution and Investing
Just as humans and other species have evolved and adapted over time, investors need to do the same to meet the challenges and opportunities of an ever-changing financial world.
State Street Rebalance of Active ETF Models Hint at Caution
It’s certainly a challenging time to be an investor. It's probably why a call for caution and diversification seems to be getting louder.
Is It Time to Be Max Bullish?
The further acceleration and broadening of corporate profit growth supports RBA’s bullish near-term outlook for many regions and sectors of the stock market. However, when constructing portfolios, it has paid to separate the equity asset allocation decision from the equity selection decision.
The Prices Don’t Feel Right: Unraveling the Inflation Perception
Inflation is not fun. And—for the past 30 years—it has largely been a non-issue for consumers. That dynamic has changed. The relevant question is whether this is something persistent and meaningful or simply a fleeting feeling.
QuantStreet June 2024 Letter: Don’t Sell in May
After a weak April, markets bounced back in May, with the S&P 500 staging a breathtaking rally in the final few hours of trading on Friday, May 31.
Understanding Direct Indexing: A Personalized Investment Approach
You’ve probably heard the term “direct indexing.” It seems like everyone is talking about it. You’ve probably also read that sales of direct indexing products are booming. But what exactly is direct indexing?
JPMorgan, Morgan Stanley Split on Outlook for Equity Gains
Investors betting on further US equity gains over the coming months will be disappointed, according to strategists at JPMorgan Chase & Co. Their peers at Morgan Stanley disagree.
Navigating Inflation: The FOMC’s Single Mandate
The Federal Open Market Committee is always data-dependent. But the dependency is not always the same. There are times when inflation matters more than the labor market, and times when the situation is reversed. Every regime is unique. There is never a perfect corollary to a previous experience. This time is not different.
When it Comes to 529 Plans, “Target” Enrollment Portfolios Can Miss the “Mark”
Ross Riskin's op-ed examines the potential drawbacks of using glide path portfolios in 529 college savings plans, particularly during high-interest rate environments. He suggests that money market options may offer better capital preservation for funds needed during college enrollment, emphasizing the shift from growth to stability in investment strategies.
ETFs, CEFs & More: MLP Investment Products Evolve
VettaFi discusses changes in the MLP/midstream investment product landscape.
How to Capture AI Innovation in a Risk-Aware Equity Portfolio
Technological disruption creates opportunity—and volatility. But there are ways to capture AI innovation while managing risk.
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.
Big Changes Are Coming
Few advisors are prepared for the massive change coming to the advisory profession. It will not be a slow rollout over decades. In three to five years (if not sooner), how advisors do business will fundamentally change.
Don’t Miss These Key Private Asset Trends
Private asset trends may not directly apply to many investors in publicly available strategies, but they can provide helpful data.
Don’t Miss These Key Private Asset Trends
Private asset trends may not directly apply to many investors in publicly available strategies, but they can provide helpful data.
Upgrading Equities Over Bonds
We explore how stabilization and growth of global markets may potentially shift preferences toward equities relative to bonds.
The Investment “Holy Grail” Doesn’t Exist
When it comes to the financial markets, investors have a litany of investment vehicles to choose from. The choices are nearly unlimited, from brokered certificates of deposit to complex derivative instruments.
Election year: The Impact on Institutional Investors
Do presidents and prime ministers make economies? Or do economies make presidents and prime ministers? 2024 is a year of significant elections, with more voters heading to the polls worldwide than ever before.
Equity-Like Return Potential in the Loan Market
Guessing the direction of interest rates is no easier than any other tactical or market timing decision. The yield on the benchmark 10-year Treasury note is just under 3.9%. That is about 100 basis points less than it was a few months ago. Fed policy is uncertain, inflation has not been fully controlled, and fiscal deficits loom as a long-term risk for yields to go higher.
QuantStreet May 2024 Letter: Market Reassessment of Fed Policy
From the end of March until the end of April, the market had a serious rethink about the path of monetary policy for the rest of 2024.
Quality Is an All-Weather Investment Strategy
While much remains uncertain regarding rates, inflation, and the economy, quality stock investing proves a boon in any market environment.
What Is Direct Indexing?
If you’re not sure what direct indexing means, you’re not alone. Even after the recent growth, direct indexing remains relatively unknown. As our compliance team never fails to remind us, you can’t invest directly in an index. So what exactly is direct indexing?
Is a Total Portfolio Approach Right for Your Organization?
Recent media coverage about how best to construct and manage portfolios has many wondering whether institutional investors are facing a paradigm shift right now.
Election Years Create Their Own Patterns
How momentum and election cycles may shift the impact and timing of seasonal trends.
Non-Profits: What's Your Strategy if a Recession Strikes?
As non-profit investors set their investment and spending policies, it is important to consider their organizational circumstances during a market shock.
John Hancock Rolls Out New High Yield ETF
John Hancock Investment Management has added a new ETF to the company's growing lineup. JHHY primarily invests in high yield bonds.
Portfolio Construction
One of the main advantages of constructing a portfolio of individual bonds is that it can be customized to meet the precise needs, wants, and objectives of the investor
Alternative Allocations: Due Diligence Meetings
How and why more advisors are tapping into alternatives—Tony Davidow, Senior Alternatives Investment Strategist at Franklin Templeton Institute, shares insights from a recent gathering.
3 Tips When Looking to Short-Term Bonds
High quality short-term bonds offer a number portfolio benefits while putting excess cash to work, but what's under the hood matters.
Don’t Ignore Your Midcap Allocation
Looking to make a midcap allocation? Midcaps can stand out relative to small- or large-caps thanks to its combination of growth and size.
How the NFL Draft Is Like Building an Investment Portfolio: The Process of Choosing Winners
Much like the NFL draft, portfolio managers undergo rigorous evaluations. Their track record, investment process, and stock selection process are considered. Additionally, qualitative assessments, including manager interviews and onsite visits, offer insights into their character and decision-making prowess.
When Is Enough Enough?
It’s not just about the balances in the accounts; it’s about helping our clients have a healthy relationship with money.
The Power of Tax-Loss Harvesting
Tax-management strategies are crucial for clients, and they need today’s most sophisticated tools to relieve the tax burden for their clients. In this episode, my guest will dive into those strategies, such as tax-loss harvesting, and will explain how tax technology plays a significant role in driving value through smart, automated processes that find the right investment strategies for every client. We’ll also discuss why it’s important to deliver tax-loss harvesting with a purpose as well as some other hot topics affecting the advisory profession.
A Unique Platform for Alternatives
Most platforms for alternative investments are just concerned with getting advisors access to those investments. But advisors need education on the role alternatives can play in asset allocation and how creating portfolios that complement traditional assets drive business growth. My guest today will discuss:
Is Adding Interest Rate Risk Worth It?
A changing rate narrative now leaves advisors weighing the costs and benefits of taking on additional interest rate risk.
The Enduring Power of the 60/40 Allocation
Diversification is a core principle of sound investing, but building a diversified portfolio is much easier in theory than in practice. In the recently published “2024 Diversification Landscape,” portfolio strategist Amy Arnott of Morningstar took a deep dive into the diversification potential of several major asset classes. As advisors build their clients’ portfolios, there are a few lessons from this research. First, it is impossible to predict which asset class will do well in any given year. Holding a variety of asset classes helps guard against being overly exposed to an area that falls out of favor. Second, while the correlation between stocks and bonds has increased, bonds still provide relatively strong diversification benefits. This means that the classic 60/40 portfolio is tough to beat, having produced returns of about 18% in 2023. Third, the asset classes with the strongest diversification benefits may come as a surprise to some advisors. Real estate is a questionable diversifier despite its popularity, while cash is a strong diversifier.
Alternative to a Manic AI Market: RAFI vs Equal-Weight
Over recent decades, the hot tech trends (from search to cellphones to social media to the digital economy and now to AI) have been a predominantly American story.
Should You Consider High-Yield Municipal Bonds?
We believe high-yield munis carry additional risks, but are worth consideration by investors in higher tax brackets who are comfortable taking added risks.
3 Trends Dominating Fund Flows Right Now
Interpreting flows into ETFs and mutual funds sometimes feels an awful lot like reading tea leaves, but I love it.
Democracy as a Factor in International Investing
Large international index funds do not account for geopolitical risk. Corruption has costs, and in this age of conflict with rising tensions in the Middle East, Russia, Ukraine and elsewhere, investors are faced with a daunting landscape while US markets are near highs. Should investors ride the momentum or transition and rotate to sectors that represent greater value and higher forward expected returns? The traditional international funds are attractively valued relative to the US but are fraught with risk. Today we will hear from Julie Cane and Chris Browne from Democracy Investments to discuss democracy as a factor in international investing.
Leveraging Tech to Customize Model Portfolios
With the right tech in place, advisors can access reliable, high-quality models that can be used repeatedly across their book of business.
Checking the CIO Pulse
So far this year, the US equity market has shown remarkable resilience and US inflation has remained sticky. Against this backdrop, a recent survey of our chief investment officers offers analyses and perspectives on key areas, such as Federal Reserve rate cut expectations, geopolitical risks, uncertain corporate earnings and opportunities in different asset classes.
On the Private Markets Racetrack, a Fund-of-Funds May Help You Win
Investing in private markets has obvious upsides, including potential higher returns, access to a broader opportunity set, and greater diversification.
Investing Together: Client Conversations
Ali Dibadj, CEO, shares the industry topics he’s hearing most in conversations with asset allocators, family offices, end-clients, colleagues, investors, and others he meets around the world.
529 Plan Withdrawal Rules
There are rules to follow if you set up a 529 college plan. If you don’t follow the rules, then the IRS will get involved, which is something you want to avoid.
Don’t Make This Mistake With a 529 Plan
While these tax-advantaged accounts are effective tools for meeting future education needs, a 2023 analysis found that overfunding a 529 plan can result in a large tax bill if money remains in the account after the beneficiary has graduated.
Worried About Market Volatility? Look to Options
For investors looking to position their portfolios amid ongoing uncertainty, many options strategies benefit from increased volatility.
Mean Reversion and Managing Market Jitters
With an understanding of reversion to the mean, it is possible to contextualize market volatility for investors in a way that helps them view it more constructively.