The Fixed Income Channel

NewsLetter – April 2018

Read Harold Envensky's most recent Newsletter

Triumphant Equity Returns Are Over

We are growing accustomed to wide daily swings in the Standard & Poor’s 500 and the Dow Jones Industrial Average. Triple-digit moves in the latter and double-digit changes in the former are no longer reasons for elation or alarm. The volatility can result from an unexpected economic report or a tweet from the White House.

Dan Fuss – Only Two Things Can Stop Rates from Rising

As his 60-year tenure attests, Dan Fuss is one of the most respected bond investors. In my interview with Fuss last week, he explained why it would take either a geopolitical crisis or an economic collapse to drive rates lower. Fuss also said investors should exercise caution in bond ETF markets that are exposed to liquidity shocks.

The Final 10 of 50 Faster Growing Dividend Growth Stocks: Part 5

This is the fifth of a five-part series presenting 50 dividend growth stocks that I have screened for current fair value. With this article, I will be covering 10 additional dividend growth research candidates with moderate to higher yields in addition to the initial 40 that I presented...

Income Investing for a Rising Rate Environment

Advisors face two problems in today’s market: how to find yield in a low interest rate environment and how to protect against rising rates. Join experts from XA Investments and Octagon Credit Investors and learn ways to position clients’ portfolios to take advantage of rising rates. We’ll discuss the benefits of floating-rate loans and collateralized loan obligations (CLOs) and how best to access them.

Participants will learn about:

  • Rising Rates and Floating-Rate Credit—Floating-rate credit will fare better than traditional fixed income when interest rates rise.
  • Accessing Institutional Alternative Credit Strategies—Learn what to look for in these alternative investment opportunities and the importance of an experienced manager.
  • CLO Debt and Equity Investments—See the portfolio benefits of CLOs by understanding their historical performance, current yields and correlations to traditional asset classes.

Second Quarter Hedge-Fund Strategy Outlook: K2 Advisors

In their second-quarter (Q2) 2018 outlook, K2 Advisors’ Research and Portfolio Construction teams share their views on why investors should not fear the return of market volatility—and why it may unlock opportunities for active managers. We believe offering these insights will help investors better understand the rationale for owning retail mutual funds that invest in hedge strategies.

Strategic Income Outlook

Written in 1606, Shakespeare’s words are just as relevant today. Tweets and eye-catching headlines dominate the news cycle and many conversations, but when you parse them for impactful content, you realize it’s mostly just white noise.

April 2018 Economic Outlook

Conditions we are seeing today are more normal than recent years, when investors grew accustomed to record low interest rates, a near-absence of inflation and the subdued volatility. We expect coordinated global economic expansion will continue through 2018, although improvements in some economic fundamentals may have peaked.

Two Ways Tax Reform Is Impacting Muni Bonds

The Tax Cuts and Jobs Act of 2017 included a number of changes that have directly impacted the $3.7 trillion municipal bond market.

Yes. It's a Bubble. So What?

With sky-high valuations in the US stock market, and what we believe is a tech bubble that has dangerous implications for other areas of the market, we suggest four actions investors can take now to avoid the inevitable bursting of the bubble, and which will likely benefit their portfolios’ long-term performance potential.

Don’t Fear the Yield Curve Reaper

The yield curve has flattened significantly recently and has elicited headlines of impending doom, heightened recession risk and investor consternation…is the worry overdone?

Do Equity Hedge Funds Really Generate Alpha?

Hedge funds, as represented by the Barclay index, can effectively be viewed as equity replacements. Further, the proper benchmark for equity hedge funds is target volatility strategies.

Boeing, from Purchase to Sale: A Value Investor’s Exercise of Patience, Discipline and Risk Reduct

From the time I was a little tyke, I knew the benefits of having cash available to make a purchase. With it I could easily buy something under very favorable terms when others were in desperate need of that cash.

How a High School Football Coach Landed NFL, MLB and NBA Clients

Professional athletes are among the most coveted clients for advisors – and present unique financial challenges that those athletes are typically ill-equipped to handle themselves. Paul Franklin leveraged his role as a high-school football coach to pursue a career serving those clients.

Retirement Strategies in Pictures

Advisors providing retirement recommendations will find it helpful to use a graphical approach to show the year-by-year progression of funds available during retirement.