The Active Management Channel

The Biggest Global Tax Break Ever Bubbles Up from Texas Oil Industry

Oil prices continue to remain low, however, thanks in large part to the ingenuity of Texas fracking companies. As I told Liz, this has served as a multibillion-dollar “peace dividend” that has mostly helped net importing markets, including “Chindia”—China and India combined, where 40 percent of the world’s population lives—Japan and the European Union.

Why Gold-Mining Stocks Could Regain Some Luster

Here, Franklin Equity Group's Steve Land digs deeper into industry fundamentals that he thinks make for an attractive longer-term investment case for gold or gold stocks

A Case for Multi-Asset Investing: The Low-Return Imperative

The data suggests that future market returns are likely to be lower than in the past. Can a multi-asset investing approach help make up the difference?

High Yield Market Update

The U.S. high yield bond market has grown substantially to around $1.3 trillion today. At the same time, the global high yield market has become more geographically diverse. North America’s share of the market has fallen from 87.1% in 2005 to 62.6% in 2016.

Myths and Misconceptions

History shows, and investment strategists tout, that small cap stocks are the best performing asset class. While small caps outperformed the runner-up, large cap stocks, over the last nearly 100 years, research has shown that the outperformance hasn’t persisted over all multi-year time periods and that the outperformance is concentrated in microcap stocks.

Large-Cap Value Farming

Value investing is very similar to farming. A farmer needs fertile ground, well-planted seeds, unshakable patience, loads of sunshine, watering and weeding, as well as a great deal of courage and faith to succeed in the long run. Today, we believe that investors need to reexamine the benefits of a value investing approach toward the end of an era which has rewarded growth stock investing.

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.