US Tech Sector: Continued Run-Up or Correction Coming?
Since the infamous “dot com” meltdown nearly two decades ago, people have tended to question any sort of extended run-up in technology-sector stocks.
Seven Reasons Why Advisors Should Use Bond Ladders
I often hear criticisms about the use of bond ladders. Whenever the criticism comes from professional advisors, however, I’ve noticed it generally involves firms that use only bond mutual funds or ETFs instead of individual, tailored bond portfolios, whether in the form of a bond ladder or not. Unfortunately, much – if not all – of this criticism is based on falsehoods and the conflicts that can arise when advisors employ only mutual funds and ETFs.
Gold Was Chemically Destined to Be Money All Along
I think most of you reading this right now are aware that gold is unlike any other metal, certainly any other element. It doesn’t play by the same rules as iron or tin or aluminum, and its value has nothing to do with its utility—or lack thereof.
The S&P 500: Just Say No
James Montier and Matt Kadnar, members of GMO’s Asset Allocation team, have just published a new white paper -- “The S&P 500: Just Say No” -- warning of the risks to investors throwing in the towel on valuation, diversification and active management in favor of a passive allocation to large-cap U.S. equities.
World Markets Update
All eight indexes on our world watch list have posted gains for 2017 through August 14. The top performer thus far is Hong Kong's Hang Seng with a gain of 23.86%, followed closely by India's BSE SENSEX at 18.11%. In third is our own S&P 500 with 10.14%.
Five Trends That Could Impact Global Small Caps
The only constant is change — and the global market is certainly proof of that. As we assess our outlook for the rest of the year, we see several potential changes that could impact international small- and all-cap funds. Here are the five trends we anticipate having the biggest effect — and the ways the Invesco International and Global Growth team is poised to respond.
On My Radar: The Fed is “Focused on the Obvious and Unimportant”
Atop the “what matters most” list is debt. Specifically, global sovereign debt: U.S., Europe, Japan and China. We are at the end of a long-term debt cycle. Borrow, spend and grow is good for the economy. Credit is money. It is a multiplier that enables you to spend more than you have.
Weighing the Week Ahead: Will the North Korea Threat be the Catalyst for a Market Correction?
In a normal, quiet summer week we would be lazily considering consumer confidence and the Fed minutes. Instead, the escalating war of words between the U.S. and North Korea has claimed the agenda.
Is this the Start of a Hot New Metals Bull Market?
Dalio’s not the only one recommending gold right now. Speaking to CNBC this week, commodities expert Dennis Gartman, editor and publisher of the widely-read Gartman Letter, said that he believed “gold is about to break out on the upside strongly” in response to geopolitical risks and inflationary pressures. Gartman thinks investors should have between 10 and 15 percent of their portfolio in gold.
What I Learned at (Economics) Summer Camp
Well, I went to camp this summer, too. I go every year, and I always learn more than I can manage to remember. Camp Kotok is an invitation-only gathering of economists, market analysts, fund managers, and a few journalists. It takes place at the historic Leen’s Lodge in Grand Lake Stream, Maine. We fish, talk, eat, drink, and talk some more. It’s a three-day economic thought-fest (and more rich food and wine than is good for me or anyone else at the camp). For me, that’s about as good as life gets.
S&P 500 Snapshot: Down 1.43% from Last Week
The S&P has seen daily losses in 5 of the last 7 market days and closes the day with a loss of 1.43% from the previous week. The index is up 9.04% YTD.
Are Low Vol ETFs as Smart as They Sound?
“Smart Beta” ETFs and their low-volatility ETF progeny may deliver a lower beta against their relevant benchmarks, but they’re not immune to bouts of volatility, and their returns frequently come up short.
The Latest Look at the Total Return Roller Coaster
Here's an interesting set of charts that will especially resonate with those of us who follow economic and market cycles. Imagine that five years ago you invested $10,000 in the S&P 500. How much would it be worth today, with dividends reinvested but adjusted for inflation? The purchasing power of your investment has increased to $19,354 for an annualized real return of 13.28%.
Know Your ETF
Many investors think of active and passive management as polar opposites, with nothing in common except the markets in which they operate. While this may be a popular notion, we believe it was never technically true. The question is not whether ETFs and other passive strategies are, in fact, managed investments, but rather how — and how much — they are managed.
Weighing the Week Ahead: Time to Raise Price Targets?
With President Trump taking vacation at the same time as Congress and a light data calendar, what will the pundits feast upon? Corporate earnings results and new stock market records mean that the price targets at the start of the year are now obsolete.