The Asset Allocation Channel

New Year, New Policies, and Managing the New Risks

We would like to take this opportunity to extend our warmest Holiday Wishes to all of our clients and their advisers. 2016 certainly was a year for the history books – from the Brexit surprise to the November surprise; the year certainly was not one that improved the reputation of pollsters!

The Long Cycle Continues

GSAM expects the long post-crisis economic recovery to continue in 2017 and prefers equities over credit and credit over rates. Broadening exposure beyond conventional stocks and bonds, identifying opportunities in emerging markets and deploying more dynamic asset allocation strategies are some ways to adapt.

The Latest News in Alternative Investing

Using alternative investments allows investors to hedge against changes in the market and still see positive returns. Commodity ETFs and real estate investments offer investors options outside of traditionally “safe” investments. The rise of popularity in alternative investments has led to the acquisition of many smaller, specialized firms with specific industry knowledge that claim to understand how to best profit from the many asset classes.

On My Radar: Keep One Eye On Bonds. Keep the Other on Inflation

I hate making predictions. I got the tech wreak and sub-prime right, but was far too early on those predictions.

Asset Allocation is Not for the Faint of Heart (Long Live Diversification)

I’m starting to feel like a rancorous curmudgeon, but I am frustrated by some of the misguided commentary on asset allocation and how diversification is a myth.

Will Q4 Earnings Confirm Recent Economic Strength?

My scorecard for earnings season will look for the following company characteristics: Confidence. I expect most to have a murky outlook, with no reason to set the future bar very high. Important trade relationships – imports or exports. Comments on these fears may create some buying opportunities. Concern about a stronger dollar. Everyone is teed up to watch for this, and we should as well.

New Tools to Prove You Acted as a Fiduciary

This article, the first of two parts, is a review of some of the more prominent new tools that advisors can lean on as they prepare for the full DOL rule implementation on April 10. Each of them addresses a different aspect of the rule, and they all approach it from different angles.

American Small Businesses Party Like It’s 2004

Look at what President-elect Donald Trump’s pledge to lower taxes and slash regulations is doing to business optimism here in the U.S. Last month, the Index of Small Business Optimism soared a phenomenal 7.4 points to 105.8, its highest reading since 2004. The National Federation of Independent Business (NFIB), which conducts the survey, reported that attitudes toward capital spending and job creation in particular surprised to the upside. Research firm Evercore ISI called it a “blowout report,” and I have to agree.

ETF Trends to Watch in 2017

The turn of the calendar to a new year brings new year’s resolutions—and predictions. While many market pundits are now making their prognostications for the year ahead, David Mann, head of Capital Markets, Global Exchange-Traded Funds (ETFs), doesn’t claim to have a crystal ball that will reveal where the market is headed next.

Market Overview Q416: Diagnosing the Problem

The good news is that economic problems are fixable. The bad news is that they need to be properly diagnosed and treated first. Investors need to handicap the degree to which this will happen.

Sustainable Development Goals: Common Goals, Our Approach, Your Impact

How the United Nations Sustainable Development Goals can serve as a framework for ESG investors

2017 Global Market Outlook

The search for investment portfolio returns is not going to get any easier in 2017 against a backdrop of record U.S. equity prices, narrow credit spreads and low bond yields.

Gundlach’s Forecast for 2017

Investors will confront excessive debt, high P/E levels and political uncertainty as they enter the Trump presidential era. In response, according to Jeffrey Gundlach, U.S.-centric portfolios should diversify globally.

Multi-Asset Outlook 2017: More Growth, More Inflation, More Politics

Paul O’Connor, Head of Multi-Asset, reviews 2016’s lessons, and details the key themes that investors should prepare for in 2017. He explains which areas of the market look most and least appealing from a cross-asset perspective.

If You Could Ask the New Administration for One Thing…

Investors have been bidding up stocks in anticipation of policy shifts by the new administration. Russ discusses the policy that matters most to investors.