The Income Channel

Getting More From Your Equity Allocation

How can equity investors address the triple threat of a low return environment, scarcity of alpha and the tendency to chase performance?

Jack Bogle on the Limits of the Fiduciary Rule and the Future of the Advisory Industry

Speaking two weeks after his 88th birthday, Jack Bogle called the fiduciary rule “silly” and said that financial advisors’ fees are heading lower. Indeed, he said, advisors are destined to charge hourly or retainer fees, like lawyers and accountants.

Keep Your Eyes on the Credit Markets, Not Washington

With political uncertainty on the rise in D.C., will market volatility spike? Russ discusses why the economy and credit markets matter more.

Keeping Your Balance as Rates Rise

Rising interest rates make bond investors nervous. But purging your portfolio of interest-rate risk can backfire—even in a rising-rate environment. There’s a better way to balance risk and return.

Reflections on Trade: Part IV

This is the final report of our four-part series on trade. This week, our discussion on trade continues with a look at the relationship between trade, employment and inflation. We also conclude the series with market ramifications.

April Real Median Household Income Shows Encouraging Growth

The Sentier Research median household income data for April, released this morning, came in at $59,361. The nominal median rose $688 month-over-month and is up $2,176 year-over-year. In percentages, the latest month is up 1.2% MoM and up 3.8% YoY. Adjusted for inflation, the latest month is up $590 MoM and $920 YoY. The real numbers equate to changes of 1.0% MoM and 1.6% YoY.

Yawn…

Expectations for U.S. growth continue to slow as distractions in Washington D.C. take away from the aggressive legislative agenda.

Jeremy Siegel versus Robert Shiller on Equity Valuations

Should you reduce allocations to U.S. equities given the conventional wisdom that prices are “rich” and “due for a correction”? Jeremy Siegel says no; investors should expect 5% real returns from stocks over the long term. But Robert Shiller thinks that number should be much lower.

Spryng into Saving for College

As the cost of a college education continues to rise, parents (and their children) are coming up with creative ways to finance it.

Our Five Year Forecast for the S&P 500

The vast majority of businesses manage their operations according to a plan. That plan may be as simple as an entrepreneur writing down a few goals on a napkin, or as complex as a massive set of instructions covering the day to day, month to month, year by year, or decade by decade actions required to maximize profits.

Gimme Three Steps … and a Stumble?

"Three steps and a stumble" was first illustrated by Edson Gould, the legendary market technician from the 1930s through the 1970s. Ultimately the baton was passed from Gould to another legendary market analyst (and my mentor/boss for my first 13 years in this business), Marty Zweig, who incorporated the "rule" into his monetary policy indicator.

7 Come 11

On a craps table, if a 7 or 11 rolls on the first throw of the dice, you are an automatic winner if you are betting the “pass line.” But, if you roll a 2, 3, or 12 on the first roll, you lose.

Understanding Today’s Stagnation

One explanation for today’s stagnation focuses on growing angst about new technologies that could eventually replace many or most of our jobs, fueling massive economic inequality. People may be increasingly reluctant to spend today because they have vague fears about their employability tomorrow.

Brazilian Markets Tumble as Political Turmoil Returns

Brazil’s stocks and currency took a beating as President Temer was implicated in a corruption scandal, endangering the government’s reform agenda and fragile economic recovery.

And If You Try Sometimes…

Following the election, stock market participants gained optimism on the view that the new administration would push through a reduction in regulations, sharply boost infrastructure spending, and achieve broad tax reform.