The ETF Channel

5 Fairly Valued MLPs: Is the Dilution Worth the Yield and How Do You Value Them?

The 5 MLPs covered in this article offer yields ranging from 5.7% to 10.7%. Additionally, each of these MLPs appears reasonably valued given their high yields and prospects for growth. However, two of these MLPs are currently in the process of merging.

Center Stage…

While politics and the new government's agenda is still very much in the news, investor interest last week shifted to the bigger picture.

Bank Rally Likely to Shift to Micro-Caps

After lagging the market for years, US financial stocks surged after Donald Trump’s surprising win in the US presidential election. Investors can still profit from investing in banks; in our view, many of the best opportunities now lie in the micro-cap banks the rally left behind.

A New Queen Bee?!

Something similar to this “new queen bee” story is happening now. The “old queen” has been the Federal Reserve and monetary policy. The “new queen” appears to be the White House and fiscal policy.

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.

The Downside of Excessive Caution

As advisors, you counsel your clients about risk. But based on my experience, you don’t take enough risk. Your excessive caution is imperiling your business.

Gold Gets a Shot in the Arm from Inflation and China

Inflation just got another jolt, rising as much as 2.5 percent year-over-year in January, the highest such rate since March 2012. Led by higher gasoline, rent and health care costs, consumer prices have now advanced for the sixth straight month. In addition, January is the second straight month for rates to be above the Federal Reserve’s target of 2 percent.

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.

S&P 500 Snapshot: Yet Another Record Close

On Friday, the S&P opened lower than Thursdays' close and was fairly flat until late in the day with a rise a couple of hours before close. The index reached its intraday high at close and ended the day with a gain of 0.17%. Week over week, the index saw a gain of 1.51% ending Friday with another record close.

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.

Trade Secret: Emerging Markets Constrained by US Policy Uncertainty

Uncertainty about US trade policy changes that could potentially harm emerging market economies dragged them down 4% during the fourth quarter of 2016, underperforming developed markets by 2%.1 Yet emerging market economies generally showed positive signs, with exports beginning to recover, commodity prices rebounding, and inflation remaining benign.

Why European High-Yield ETFs Don’t Deliver

There’s value and opportunity in European high-yield bonds today. But if you’re considering using an exchange-traded fund (ETF) to tap into the market, you may want to think again.

What's in Your ETF Portfolio?

ETFs continue to play a highly disruptive role in money management. RBA has embraced this trend by employing what we refer to as Pactive™ Management, which is the active allocation, whether strategic or tactical, of passive investment instruments such as ETFs, stock baskets, and index funds. These Pactive™ portfolios have quickly become the fastest growing part of our business.

The Myth Of The “Passive Indexing” Revolution

There is little argument that Exchange Traded Funds, more commonly referred to as “ETF’s” have and will continue to change the landscape of investing.

Does Inflation Forecast Future Equity Performance?

Stocks perform poorly when inflation is on the rise. The empirical data is supported by theory. Rising inflation means that interest rates are increasing and the discounted value of future cash flows is driven down, lowering equity prices. Let’s see if we can use the inflation rate to improve equity performance.