The Fixed Income Channel

Gold and the Global Ticking Debt Bomb

Looking long-term, there are mounting risks involving debt that make gold appear very attractive right now as a safe haven and portfolio diversifier.

Three Market Concerns Move to the Fore

Last week brought renewed focus to three areas of concern that I’ve been writing about for some time: populism, protectionism and pressure on debtors. It appears that we may be moving closer to certain outcomes that could be of concern to markets.

The Value of Short Volatility Strategies

The authors believe that with today’s heightened valuations across global equity markets, and volatility no longer cheap, now is a fitting time for investors to take a careful look at put writing strategies and consider swapping a portion of their traditional equity exposure for index put-writing. The piece concludes with a “Special Topic” dedicated to examining the recent VIX Blowup.

Defined Contribution: Four Themes for 2018 and Beyond

In our view, the prospective low-return environment calls for a capital-efficient approach that pairs actively managed bonds with passive or enhanced equities in target-date, core and retirement-income allocations.

Inflationado? Muni Investors Should Seek Cover

US inflationary pressures are developing that could be destructive. Investors need to seek protection quickly. But how? For municipal investors, some inflation strategies fall short, leaving portfolios at risk.

Counter Cyclical Stocks Are Making New Relative Lows, Right on Cue

Counter cyclical stocks, those in the consumer staples, health care, real estate, telecom and utilities sectors, continue to have a tough go at things. In fact, as of two days ago this group of bond proxies made a new low compared to all developed market stocks, thereby continuing and reinforcing a trend that has been in place since the middle of 2016. Why is that?

Implications of the Tax Cuts and Jobs Act for Municipal Bond Investors

The 2017 Tax Cuts and Jobs Act will impact advisors and muni bond investors. Here’s what they should expect moving forward in 2018.

The Four Horsemen of the Retirement Apocalypse

In biblical tradition, the four horsemen of the apocalypse are a quartet of immensely powerful entities personifying the four prime concepts – war, famine, pestilence and death – that drive the apocalypse. For today’s investors, the equivalent is historically high equity valuations, historically low bond yields, increasing longevity and, as a result, the increasing need for what can be very expensive long-term care.

Why Rising Rates Aren’t a Disaster for Bonds

Bond investors get anxious when rates rise suddenly, as Treasury yields have recently. But if your investment horizon is longer than a few months, rising rates are nothing to be afraid of.

Emerging Markets: Standing Up to Higher Volatility

During the second most significant repricing in U.S. Treasury bond yields since 2013, emerging market debt has so far significantly outperformed equity, oil and U.S. Treasury beta.

Where The Equity Opportunities Are

Michael Grant, SVP, Senior Portfolio Manager, says that utilities, telecom and consumer staples are among the overvalued while opportunities in financials and selective cyclical stocks are being underestimated. To learn more visit: http://bit.ly/AskPM-PLS

Equities—Investors Need To Get It Right This Time

Michael Grant, SVP, Senior Portfolio Manager, provides his long-range view of equities. To learn more visit: http://bit.ly/AskPM-PLS

Coaching Difficult Behavior

Do you have any tips on the best way to coach and mentor someone who is the heir apparent in my firm? I have a young man who is sharp, highly credentialed and very good with clients. The problem is he rubs people in the firm the wrong way.

What’s Next for Investors in the Bond Market

Recent market volatility suggests that investors are questioning whether the post-crisis subpar pace of economic growth, which we dubbed The New Normal, is subsiding, to be replaced by more traditional late-cycle outcomes – in particular faster inflation and tighter monetary policy.

Italian Election Primer: Game of Coalition

Check out our primer on the March 4th General Election in Italy to learn about the potential political implications and possible market impacts.