by Robert Huebscher
Lack of bond-market liquidity has been the focus of recent reporting in the financial media. But one of the first to warn about that danger was Michael Aronstein, who said last week that the risks are clearer than ever. Mutual fund investors face the greatest peril.
by Sponsored Content from Invesco
• Correlations have risen between perceived ‘safe haven’ assets and equities • Volatility has been a positive performer in falling equity markets, and we see it as a diversification tool in multi-asset portfolios • We look for areas where we think the markets' implied relative risk is an opportunity
by Larry Swedroe
Assets in actively managed mutual funds have been a consistent source of revenue growth for Wall Street banks. But would investors have been better off in passively managed funds? I’ll answer that question for Wells Fargo and then for the group consisting of the four largest banks.
by Dan Richards
In today’s results-driven world, many CEOs focus on hitting short-term profit targets. But not Eric Schmidt. In the book, How Google Works, he outlined the model that allowed the company to meet ambitious goals while simultaneously positioning itself for success down the road. Here’s what advisors can learn from his approach.
by Dan Solin
Many advisors face with troublesome questions from prospects. Sometimes these questions go into the technical aspects of investing. How you answer these questions can determine whether you are successful in converting a prospect into a client.
by Michael Lebowitz
This article presents the case for an asset that will help managers protect their clients and uphold their fiduciary duty owed to them. I’ll explain why gold is a powerful hedge that will protect your clients’ wealth, but first I’ll look at the history of trade and currencies and how gold evolved to become a global store of wealth.
by Baijnath Ramraika, CFA and Prashant Trivedi, CFA
This article is the first in a series discussing an assessment process for existence or absence of sustainable competitive advantages. In this article, we discuss the basic building blocks of an investment process designed to identify high-quality businesses: the entry and exit barriers.
by Brooke Mease
What I’ve discovered through developing client-service models for many advisory firms is that you need to start by determining who you enjoy serving and then build out your service model based on the needs of those specific clients.
Find career opportunities for firms that seek to add financial advisors and planners to their staff. Read more to find out how to post opportunities at your firm.
by Beverly Flaxington
Can I find prospects without cold calling or running an advertisement, both of which are time consuming and expensive?
by Liz Ann Sonders of Charles Schwab
Many of the questions I’ve been getting recently at client events are around earnings, and whether the expected move into negative territory for earnings growth is a signal of a pending economic recession.
by Eric Busch of GaveKal Capital
Spreads are on the move in the bond market, especially for lower credit bonds. The spread between the Bank Of America/Merrill Lynch US High Yield index and 10-year treasuries has widened out to 623 basis points which is the largest spread since June 2012. It’s not just junk bonds that are making multi-year highs in spreads, however. The spread between BAA and 10-year treasuries is the widest since July 2012 and the spread between BAA and junk is the widest since September 2012.
by Scott Brown of Raymond James
The September Employment Report was disappointing, but not horrible. Some of the recent softening in the pace of job growth may reflect seasonal issues. Stronger seasonal hiring in May and June should naturally lead to more seasonal layoffs in August and September. That is unlikely the only explanation. Concerns about global growth and financial market volatility may have made firms, especially smaller firms, reluctant to hire. Estimate of 3Q15 GDP have been declining, while underlying domestic demand have remained strong.
by Peter Schiff of Euro Pacific Capital
The popular belief that the U.S. economy has been steadily recovering has endured months of disappointing data without losing much of its appeal. A deep bench of excuses, ranging from the weather to the Chinese economy, has been called on to justify why the economy hasn't built up any noticeable steam, and why the Fed has failed to move rates off zero, where they have been for seven years. But the downright dismal September jobs report that was released last Friday may prove to be the flashing red beacon that even the most skilled apologists can't explain away.
by Neuberger Berman Asset Allocation Committee of Neuberger Berman
The Committee upgraded our view on U.S. large cap equities following the recent correction, and maintained a slightly overweight view on European equities. Our view on MLPs has also improved following a challenging year.
by Scott DiMaggio, Alison Martier of AllianceBernstein
With US rates poised to rise, there’s never been a better time to reposition into global bonds as your core mandate. But when you do, it’s crucial to fully hedge against currencies—an asset class nearly twice as risky as fixed income.
by Joachim Fels of PIMCO
Given global lowflation pressures, the central-bank-fueled money glut is likely to increase further before year-end.
by William Yuen of Invesco Blog
As China transitions from a manufacturing-driven economy to a consumer-led one, the Chinese investment universe has expanded. Historically, global investors have chosen to invest in Chinese equities via Hong Kong stock exchanges. But with China gradually opening its capital markets to global investors, and more Chinese enterprises successfully listing overseas, the investment options and opportunities have increased significantly. In this changing investment landscape, we are seeing a growing trend toward investors adopting an all-market approach to investing in China.
by John Hussman of Hussman Funds
With the S&P 500 within about 8% of its highest level in history, with historically reliable valuation measures at obscene levels, implying near-zero 10-12 year S&P 500 nominal total returns; with an extended period of extreme overvalued, overbought, overbullish conditions replaced by deterioration in market internals that signal a clear shift toward risk-aversion among investors; with credit spreads on low-grade debt blowing out to multi-year highs; and with leading economic measures deteriorating rapidly...
Recent dshort Posts
The reaction in the popular financial press to last week's Employment Report for September followed the usual pattern of hyper-reaction to the monthly data points. The unemployment rate was unchanged, but the number of new nonfarm jobs (a relatively volatile number subject to extensive revisions) disappointed expectations. The popular consensus was that the low number of new jobs will dissuade the Fed from a rate hike this year.
Global markets had a good day today. The Nikkei rose 1.0% and the Euro STOXX 50 was up a comparable 0.93%. In contrast, our benchmark S&P 500 vacillated at the open, traded in the shallow red and then sold off to its -0.76% mid-day low. It spent the rest of the day grinding in a narrow range above the intraday low and closed with a trimmed loss of -0.36%, snapping its 5-day rally. The index is now down 3.84% for the year and 7.08% off its record close on May 21.
Note: This commentary has been updated with the latest numbers from last week's Employment Report.
This is not the scenario that would have been envisioned a generation ago for the "Golden Years" of retirement. Consider: Today nearly one in three of the 65-69 cohort and about one in five of the 70-74 cohort are in the labor force.
The Labor Force Participation Rate (LFPR) is a simple computation: You take the Civilian Labor Force (people age 16 and over employed or seeking employment) and divide it by the Civilian Noninstitutional Population (those 16 and over not in the military and or committed to an institution). The result is the participation rate expressed as a percent.
The International Trade in Goods and Services, also known as the FT-900, is published monthly by the Bureau of Economic Analysis with data going back to 1992. The monthly reports include revisions that go back several months. This report details U.S. exports and imports of goods and services.
The Labor Market Conditions Index (LMCI) is a relatively recent indicator developed by Federal Reserve economists to assess changes in the labor market conditions. It is a dynamic factor model of labor market indicators, essentially a diffusion index subject to extensive revisions based on nineteen underlying indicators in nine broad categories (see the table at the bottom for details). Today's release of the September data came in at 0, down from 1.2 in August. Negative revisions were made to the previous three months: -0.1 in July to 0.7 in June, -0.7 in July and -0.9 in August.
Today the Institute for Supply Management published its latest Non-Manufacturing Report. The headline NMI Composite Index is at 56.9 percent, down 2.1 percent from last month's 59.0 percent. Today's number came in below the Investing.com forecast of 57.5 percent.