The Active Management Channel

Active vs. passive: Should you use both in fixed-income?

The debate between active and passive management in fixed-income continues. We take a look at both sides of the coin for investors.

Trade War Games

I have lived through recessions and bear markets; I know what they look like. I wish I could forget what they feel like. They don’t come out of nowhere; there are always warning signs. Many investors choose to ignore those signs; I choose not to. I hope you make the same choice.

Sizing Up Markets—and Your Investment Strategy

Today’s risks are clear: stock valuations are high, credit spreads are tight and interest rates remain low. A modest tilt toward return-seeking assets still makes sense. But investors should also be willing to look beyond traditional stocks and bonds.

Revisiting the Traditional Emerging Market Equities Allocation Framework

Bhartia, a portfolio manager on GMO’s Emerging Markets Equities team, and his colleague Mehak Dua, explore the benefits of combining a risk-based approach with valuation in an asset class that has grown considerably more complex over the last three decades.

The Fed Balance Sheet and the Taper Tantrum That Ain’t (Yet)

The Federal Reserve is likely to begin normalizing its balance sheet in 2017. Why hasn’t this news rattled the bond market?

More & More Americans Having to Work Past Age 70

Nearly one-fifth (19%) of Americans age 70 to 74 were still in the workforce as of the end of June, according to the latest jobs report from the Labor Department on July 7. Some are working because they are healthy and enjoy their work. Most, however, are still working because they haven’t saved nearly enough for retirement.

Just more of the same…

Some good data below so I won’t draw out this intro. Stay focused overseas. Keep an eye on earnings which will hopefully be better than the reception that the big banks received on Friday. (But don’t worry, the bank disappointments were interest margin and loan growth caused, not credit related.)

Weighing the Week Ahead: Have You “Missed” the Rally?

There was something of a change in tone last week. There is more recognition of improving conditions. With a tailwind from improving earnings.

5 Reasons to Consider Convertible Securities

We see a strong case for convertible securities at this point in the market cycle along with our expectations going forward.

World Markets Update

All eight indexes on our world watch list have posted gains for 2017 through July 17. The top performer thus far is India's BSE SENSEX with a gain of 20.46%, followed by China's Hang Seng not far behind at 20.32%. In third is our own S&P 500 with 9.84%.

The Rise Of Robots & The Risk To Passive

In Tuesday’s post, “A Shot Across The Bow,” I discussed the recent “Tech Wreck” and the warning sign that was delivered when trading algorithms begin to run in the same direction.

Venerated Voices™ 2017 Q2 Rankings

Advisor Perspectives, a leading publisher serving financial advisors and the financial advisory community, has announced its Venerated Voices awards for commentaries published in Q2 2017. Rankings were issued in three categories: The Top 25 Venerated Voices by Firm, The Top 25 Venerated Voices by Author and The Top 10 Venerated Voices by Commentary.

Seven Surprising Insights about Advisory Fees

I asked the readers of my Inside Information service, members of the Advisor Perspectives community, and others, to tell me how they were charging their clients, and how much. The most interesting conclusions related to a key question that has arisen from the DOL Rule: what is a “reasonable” AUM fee to charge clients?

The Compelling Opportunities in the High-Yield Market

Andrew Susser manages the MainStay High Yield Corporate Bond Fund (MHCAX). Over the last 15 years, the fund has ranked in the 12th percentile of its Morningstar peer group; its annualized return was 8.45%, 395 basis points ahead of the AGG and 95 basis points greater than its peer-group average. In this interview, he discusses the opportunities in the high-yield market.

Finding Faith in Value after All These Years

What should one conclude about the persistent sense of despair in the investment business over the flow of funds to passive and quantitative strategies? It may well be that, as Jeremy Grantham wrote, the comfortable margins of safety experienced in the “Ben Graham training period of 1935–1965″ could never return.