Brexit One Year Later, in Five Charts
Although the British economy is showing signs of slowing down, the country has not contracted or imploded as many Brexit opponents had predicted. In fact, certain British sectors such as exports and manufacturing continue to expand.
S&P 500 Snapshot: Third Consecutive Daily Loss
The S&P opened Thursday above Wednesday's close and rose for the first couple of hours. It was flat for the remainder of the day until dropping within the last hour. The index ended the day with a loss of 0.05%, its third consecutive daily loss.
MSCI to Add China A-Shares to Emerging Markets Index: What Does It Mean for Investors?
The decision brings better representation of the entire Chinese economy.
Exploring Routes to China After MSCI A-Shares Move
MSCI has announced that China A-shares will be included in its emerging-market (EM) index next year, as we anticipated. Now, global equity investors need to consider how to access the vast universe of stocks traded onshore in China.
The Q Ratio and Market Valuation: Z.1 Update
The Q Ratio is a popular method of estimating the fair value of the stock market developed by Nobel Laureate James Tobin. It's a fairly simple concept, but laborious to calculate. The Q Ratio is the total price of the market divided by the replacement cost of all its companies.
World Markets Update: 2017 Year-to-Date
All eight indexes on our world watch list have posted gains year-to-date for 2017 (through June 19). The top performer thus far is China's Hang Seng with a gain of 17.84% in 2017, followed by India's BSE SENSEX not far behind at 17.60%. In third is our own S&P 500 with 9.59%.
The last two weeks of June are usually a good time to recharge the batteries and get away. Unfortunately, last week kept many of those out of the office attached to their smartphones and their boats tied up at the docks.
Weighing the Week Ahead: Is the Housing Rally Over?
With soft housing data last week and higher interest rates expected, it is a good time to ask: Is the housing rally over?
You Might be a Robo-Advisor If…
In a nod to comedian Jeff Foxworthy’s signature “You might be a redneck” shtick, the following parody offers real-life examples of why, contrary to popular perception, talented, experienced financial advisors have absolutely nothing to fear from the invading robot army:
Advisors Find a Road Less Traveled in Fixed Income
There is a small but growing community of advisors who are leaving behind the old ways of picking managers in an effort to give their clients something they can’t get on their own or from a robo-advisor.
On My Radar: Investment Ideas — Notes from the 2017 Strategic Investment Conference (Part 4)
As I listened to a number of the presentations at last month’s Strategic Investment Conference, silver and gold kept coming up. As did the industrial metal, copper. Make new friends but keep the old… today’s On My Radar continues the sharing of my high level conference notes with you. I walked away with some actionable ideas. Gold and silver were high on the list. The new friend is copper.
Commodities: Time to Buy When Others Are Selling?
As I travel around the country to meet with institutional clients, I often hear this question: “What is everyone selling? Because that’s something I’m really interested in buying.” These are clients who have the confidence and experience to contradict the herd mentality that causes many investors to chase market returns (which often results in buying near market tops while selling near market bottoms).
Small-Cap Mining Stocks, Big-Time Opportunity
Last month I told you about the upcoming rebalance of the hugely popular VanEck Vectors Junior Gold Miners ETF (GDXJ), and how it would distress shares of junior, small-cap mining stocks. I said then that the rebalance could create some excellent opportunities for astute investors to accumulate high-quality, well-managed producers at discount prices. That day has finally arrived.
Active vs. Passive
Many investors seem to be stuck in the middle of the false dichotomy between active and passive investing. At RBA, we argue it’s much more important for investors to ascertain which active or passive portfolio to buy and when to own it.
Risk Management 101: Diversification (Easier Said Than Done)
The essence of diversification is choosing assets that are not perfectly correlated with each other. The logic is simple enough: when one asset zigs, another zags. Years ago, finance scholars proved that a portfolio of securities is less risky than an individual holding and the idea of diversification as a risk management tool was born.