The Asset Allocation Channel

A Selective Look at Corporate Credit

Even in the face of rising US interest rates over the past year, corporate credit has been resilient, particularly in the high-yield category. Ed Perks, executive vice president and chief investment officer, Franklin Templeton Multi-Asset Solutions, takes a look at the corporate credit landscape and says fixed income investors still have plenty of reasons to be positive about the asset class.

Third Quarter 2017 Market Review – Climbing The Wall of Worry

The third quarter of 2017 was highlighted by unfavorable seasonal effects and a steady stream of nerve wracking geopolitical developments, but despite a challenging environment world equity markets persistently fought off short-term jitters and closed out the quarter solidly in the green.

Five Reasons Why It’s Not Too Late to Invest in Emerging Markets

In baseball terms, we believe the upward cycle of emerging markets (EM) is in roughly the third inning of a nine-inning game. In other words, we still see plenty of upside ahead and think it remains a good time to buy.

The Metamorphosis of Emerging Markets

The relative performance of emerging markets has been unremarkable over the past decade, however meaningful changes have taken place in the fundamental and financial construct of the asset class that are relevant for asset allocators. Most notably, the composition of the index has seen dramatic shifts in sector, country, and stock constituents...

Quarterly Update: October 2017

The modest growth rate is contributing to the length of the current economic expansion, and American households are in the best financial shape in years. Our 3Q17 Quarterly Update report discusses the economic expansion and its impact on equities, fixed income, and more.

China’s Congress Convenes

This month, China’s leadership kicks off its 19th Communist Party Congress, a meeting which sets the agenda for China’s political, economic and even social path in years to come. More than 2,000 delegates from China’s ruling elite attend the Congress, which takes place every five years.

Energy and Financials: The Value Within Value

Value stocks have started to show signs of life. Russ discusses why energy and financial stocks are currently the best ways to play the theme.

On My Radar: Risk Management for All Markets

Long-time readers know I’m an avid Ned Davis Research fan. I’ve been a loyal client since the 1990s. Ned Davis built a fact-based, technology-driven research organization. Some years ago, Ned wrote a book titled, Being Right or Making Money and I believe that title sums up NDR’s investment research culture.

What To Expect With Tax Reform

This Strategic Insight discusses how to bolster tax revenue by increasing potential growth and productivity through tax and spending reform to enhance global competitiveness and increase fairness across taxpayers, thus turn fiscal deficits into surplus. Various guiding principles outlined suggest various proven ways to achieve these objectives.

The S&P 500 versus Cash Decision

The Fed will enter uncharted waters as it begins to reduce its balance sheet, in addition to raising short-term interest rates. How should investors respond?

Why “either/or” is the wrong approach to active vs. passive

Combining both approaches may improve your investment strategy.

The Science and Art of Multi-Asset Investing

Generating consistent returns under uncertain conditions is a challenge. Can multi-asset strategies make the job a little easier? We think so. But a lot depends on how they’re designed.

Why High-Income Investors Who Spread Themselves Thin Get It Right

Tighter monetary policy in advanced economies. Stretched asset valuations. These are anxious times for income-oriented investors. But don’t worry—it’s still possible to generate income without taking on unnecessary risk.

Hoisington Quarterly Review and Outlook, Third Quarter 2017

The worst economic recovery of the post-war period will continue to be restrained by a consumer sector burdened by paltry income growth, a low and falling saving rate, and an increasingly restrictive Federal Reserve policy. Additionally, with the extremely high level of U.S. government debt and deteriorating fiscal situation, the economy is unlikely to benefit from any debt-financed tax changes. Finally, from a longer-term perspective, the recent natural disasters are an additional constraint on economic growth.

Corporate Crossover Bonds in the Sweet Spot

The unique attributes of corporate crossover bonds may offer solutions for investors assessing a range of objectives and risks.