The Active Management Channel

World Markets Update

Four of eight indexes on our world watch list have posted gains through Monday, June 18, 2018. The top performer this year is India's BSE SENSEX with a gain of 5.13%. In second is our own S&P 500 with a gain of 3.75%. In third is France's CAC 40 with a gain of 2.60%. Coming in last is Shanghai's SSE with a loss of 8.63%.

 

Will Re-Defaults of Mortgage Modifications Undermine Housing Markets?

Much has been written about residential mortgage modifications, yet hardly anything has been said about the problem of re-defaults on modified mortgages. In large part, this is due to the paucity of accurate data about borrowers re-defaulting. It is time to clearly lay out how extensive this problem really is, what it means for mortgage markets and the dangers it poses for investors.

The Battle of the Passive Strategies

My first book, The Only Guide to a Winning Investment Strategy You’ll Ever Need, was first published 20 years ago, in May 1998. With its 20th anniversary in mind, let’s see how my recommendations worked out for investors who followed them.

The evolution of Vanguard Advisor’s Alpha®: From portfolios to people

Steps financial advisors can take to build deeper trust with clients as change occurs within the financial advice industry.

Evolutions in Growth, Trade and Geopolitics

PIMCO’s Global Advisory Board discusses the outlook for major economies and geopolitical developments.

Is Your Alpha Big Enough to Cover Its Taxes? A Quarter-Century Retrospective

Investors and their advisors must be alert to managing both pre-tax and after-tax alpha in order for investors to realize the highest possible return from their taxable portfolios. Increasingly, the opportunities to accomplish both goals are within reach of investors through, for example, tax-advantaged smart beta strategies and tax-efficient vehicles such as ETFs.

Italy’s Politics Drives a Wedge Between Its Stocks and Sovereign Bonds

Risk to the euro resurfaces in an unlikely governing coalition and challenging economic agenda, but Italy’s top stocks don’t face the same perils as its government bonds.

Liquidity: Factor investing's hidden gem

The liquidity factor is a hidden gem waiting to be mined. Target its precious premium.

2018: The Math is Simple

We believe the math of common stock investing is pretty simple. When you buy a stock without leverage, you can only lose your original investment. Your gains can be unlimited over the longest term (long duration). Most of the benefit (90%) of diversification is reached by owning a twelve-to-eighteen stock portfolio...

Inside a Top-Performing Multi-Asset Fund

Bob Browne is an executive vice president and chief investment officer for Northern Trust. He is a member of Northern Trust's operating group and management group. He is also co-portfolio manager of the Northern Global Tactical Asset Allocation Fund (BBALX), a top-performing, multi-asset fund.

I Don’t Eat Desserts

As I got into my mid-forties I landed in my own version of a midlife crisis. Instead of getting a 20-year-old girlfriend or a red convertible, I started paying attention to my health.

Weighing the Week Ahead: Do Individual Investors Face a Pivotal Decision?

The economic calendar is loaded and there is plenty of non-economic news as well. The punditry will focus on the Trump-Kim summit at the start of the week and then turn to inflation data and the Fed. Who knows what the first might bring, but the market is unlikely to be surprised by the Fed.

I’ll Go Along With the Rest of the Boys!

You might think institutions with their large staffs of highly-paid and experienced investment professionals would be a force for stability and reason in financial markets. They are not; stocks heavily owned, and constantly monitored by institutions, have often been among the most inappropriately valued.

What Might Rising Rates Mean for High Yield Bonds?

US interest rates have defied market expectations in recent years, staying historically low despite solid economic growth. But in the last year, and especially the last few months, rates have started to climb.

Ignore the Tweet, Invest for the Meat

Investing based on short term-market gyrations and noise from the 24/7 business news cycle rarely drives alpha. At RBA, we’d rather invest dispassionately based on market fundamentals and focus on longer time horizons. Remember to ignore the Tweet and invest for the meat.