The Asset Allocation Channel

Real Asset Alternative CEFs

Real asset alternative investments in a CEF format may appeal to investors seeking inflation protection, says Larry Antonatos of Brookfield Asset Management.

Credit Risk? Interest-Rate Risk? Both Are Critical

Investors often ask us which of the two primary bond market risks—interest rate or credit—they should focus on in 2017. Our answer? Both of them—and the interaction between the two.

K2 Advisors : Why We Like Activist Hedge Strategies

Given the unpredictability of today’s financial markets, many investors are looking to reduce the impact of market volatility on their portfolios. Hedge-fund strategies—a type of alternative investment strategy—may help by potentially offering additional diversification, new sources of return and reduced risk.

Weighing the Week Ahead: Will Trump Policies Extend the Business Cycle?

We have another holiday-shortened week with little fresh data. While there are some Fed speakers on tap, it is not enough to feed the avaricious punditry.

On My Radar: Blood in the Streets, Indeed

We sipped the QE juice and loved the taste. Now we’re full… the game has changed. The Fed had assets worth $858 billion on its books in the week ended August 1, 2007 just before the start of the financial crisis, and the same stood at $2.24 trillion at the end of 2009.

What Advisors Should Know About Illiquidity

Relatively few investment advisors are making private equity available to their high-net-worth clients, according to new research from iCapital Network. 

Fed Up – A First-Hand Account of the Fed’s Foibles

Danielle DiMartino Booth, a former Dallas Federal Reserve official, released a new book this week entitled Fed Up. The book, a first-person account of the inner-workings of the Fed, provides readers with unique insight into the operations, leadership and mentality of the world’s most powerful financial institution.

Weekly Market Summary

US equities continue to make new all-time highs each week, supported by strong equity fund inflows and macro data that has exceeded expectations. Surprisingly, equities outside the US are actually outperforming the S&P. The current trend is very extended and there are four notable headwinds that may impact equities in the weeks ahead. There is, conversely, a favorable set up in the bond market.

Why Value Is Still a Value

The rally in value stocks may have stalled, but Russ discusses why the trend still has further to go.

Forecasting Factor and Smart Beta Returns (Hint: History Is Worse than Useless)

In a series of articles we published in 2016, we show that relative valuations predict subsequent returns for both factors and smart beta strategies in exactly the same way price matters in stock selection and asset allocation.

India's Pragmatic Populism

Demonetization, "Operation Clean Money," central bank surprises, and a populist budget that also exhibits fiscal consolidation? Negative foreign investor equity flows, and India's stock market is up?

Fund Managers' Current Asset Allocation

Optimism towards the economy has surged to a 2-year high. Cash remains in favor (a positive) but global equity allocations are back above neutral for the first time since late 2015. Another push higher and excessive bullish sentiment will become a headwind.

2017: A Challenging Year Ahead for Portfolio Allocation Decisions

Surprising many investors and pundits alike, the S&P 500 posted a solid return for 2016, finishing the year up close to 10%. If investors never looked at their statements, one might be naïve to how much markets zigged and zagged throughout the year.

Nuclear Blackmail

In this report, we define nuclear blackmail and differentiate it from blackmail in a nuclear context. We discuss why this didn’t develop during the Cold War but why it could happen now. We also analyze how nuclear blackmail might be used as part of coercive diplomacy as well as part of conventional conflict.

Rebel Yell(en)

Fed Chair Janet Yellen will present her monetary policy testimony to Congress on Tuesday and Wednesday. We may not learn much new regarding the pace of future rate increases (which will remain data-dependent) and she’s certain to avoid getting into any discussion of fiscal policy.