The Active Management Channel

Random Gleanings at 38,000 Feet

Reflecting on the months of travel as we wing our way back to Tampa at 38,000 feet, one of the more interesting encounters in those travels was spending time with Steve Forbes (Forbes Magazine). Although Steve is a staunch Republican, he suggested that Republicans worship at the altar of the CBO (Congressional Budget Office). 

Worried About Rising Rates? Here’s Why You Shouldn’t Be

Should tighter monetary policy on both sides of the Atlantic worry bond investors? We don’t think so. Bonds have historically delivered positive returns when interest rates rise—particularly when they rise gradually.

Weighing the Week Ahead: Will a More Aggressive Fed Spark the Long-Awaited Correction?

We have a light calendar for economic data. The week’s focus will be the FOMC policy announcement on Wednesday. Given the resilience of the market rally in the face of various natural and human threats, the punditry will turn to a favored topic. Expect people to be asking: Will the Fed be the catalyst for a market correction?

The “Big Lie” Of Market Indexes

The “Big Lie” is that you can “beat an index” over an extended period of time. You can’t, ever. Let me explain.

World Markets Update

All eight indexes on our world watch list have posted gains for 2017 through September 18. The top performer thus far is Hong Kong's Hang Seng with a gain of 28.0%, followed by India's BSE SENSEX at 21.77%. In third is our own S&P 500 with 11.84%.

Are Cryptocurrencies the Best Investment Opportunity of the Next Decade?

This is part one of a comprehensive primer on cryptocurrencies and blockchains.

World Leaders are Taking Investors Down a Dangerous Economic Path

Stock market performance has not been driven by the improving health of the global economy. Just as negative interest rates are not a positive for the continued health of the economy, current stock market performance does not augur rosy future returns for stocks. In fact, the opposite is true.

Investing for Returns or Investing in ESG Strategies: A False Dichotomy

The emergence of “responsible investment” solutions has created an opportunity for clients to approach their portfolios more holistically and in line with their beliefs and values. The historical perception of a trade-off between optimizing returns and reflecting values is a false dichotomy.

Weekly Market Summary

The major US indices all recorded new all-time highs (ATH) this week. The very broad NYSE, covering 2800 stocks, also made a new ATH, suggesting the rally is supported by adequate breadth. Longer-term studies and the fundamental macro data continue to indicate that further upside into year-end is odds-on. On a short-term basis, there are several reasons to be on alert for weakness over the next week or two. An important FOMC meeting is on deck for Wednesday.

Robo Advice Data Now Available for Advisors

Robo advice is the newest disruptor in the financial industry and many advisors are not sure how to interpret this new investment advice solution. Some are writing it off as a solution for lower asset customers, some are concerned about the competitive threat, while others are embracing the technology for use in their own business.

My Visa Long is Getting Long in the Tooth

Over my lifetime I have invested in many different things. In the process of doing that, I have learned that there are really only two types of investors. As an investor, you are either active or passive. Being active implies directly managing or being in control of your investment.

The Great Flood

So, I am sitting here in downtown Saint Petersburg, Florida at 7:30 a.m. Sunday morning awaiting the “great flood.” It was just a few days ago the computer models had hurricane Irma heading up the east coast of Florida, but Irma changed her mind.

Opportunities in U.S. Commercial Real Estate Debt Investing

Unmet borrower needs continue to grow in the U.S. commercial real estate lending market.

China’s Rising Presence in Emerging Debt Markets

Countless articles have been written in the past 10 years predicting (or warning) of China’s imminent financial demise, with the number of articles accelerating in recent years amid China’s debt build-up in the post Global Financial Crisis period. Investing on the basis of a “China collapse” view of the world would likely have resulted in more risk-averse portfolios in the emerging debt space and, hence, lower returns in recent years.

Problems of plenty: Can active managers manage their AUM?

It’s no secret that Russell Investments expects active managers with relatively low assets under management to have better average performance. But as Investment Strategist Leola Ross explains, increasing assets under management is not necessarily the kiss of death.