The Investment Strategies Channel

Good News Is Bad News: Deconstructing the Market Sell-Off

Stocks globally have experienced more than a week of tumultuous trading, with the US stock market officially in correction territory. And after being relatively sedate for years, the VIX Index has risen dramatically in recent days, indicating rising volatility.

Weighing the Week Ahead: Is the Coast Clear?

The economic calendar is very light, and it is a holiday-shortened week. With the quadrennial CNBC switch to Olympic curling coverage after the market close, there is a little less air time to fill. What time and space remains will invite pundit opinion about last week’s stock rebound and the question: Is the coast clear?

Weighing the Week Ahead: Will Inflation Data Spark Another Leg Down?

The economic calendar is heavy. In the battle of competing explanations for the market declines, the inflation story has taken center stage. With both PPI and CPI scheduled for release this week, I expect many to be asking: Will rising inflation spark another leg down for bonds and stocks?

Has Amazon (Jeff Bezos) Taught This Old Value Dog a New Trick?

There is the old adage: “you can’t teach an old dog new tricks.” Well, I have been a “card-carrying” and fully committed value investor for more than 45 years now. I think that qualifies me as an “old” value investing dog.

Weekly Market Summary

Prior falls like the one suffered over the past two weeks have led to quick recoveries. That likelihood is further supported by a washout in breadth, volatility and several measures of sentiment. Moreover, the fundamental backdrop remains excellent. Risk/reward is heavily biased towards upside in the near term.

Macro Factors and their impact on Monetary Policy, the Economy, and Financial Markets

It seems that after years of expecting inflation to rise to its 2.0% target the Federal Reserve and many
economists have concluded it’s just not possible. The reasons most often cited are the Amazon Affect,
Artificial Intelligence, weak wage growth, years of excess capacity, and transitory factors like the mobile phone price war in March 2017.

China A-Shares: Is Your Emerging-Market Manager Ready?

As the Chinese New Year approaches, investors will welcome the year of China A-shares, soon to be included in the MSCI emerging-market (EM) benchmarks. But put careful consideration into determining which funds are actually ready to join the festivities.

Multi-Alternative Funds: Alts for One and One for Alts

In my most recent blog, I described how choosing the appropriate alternative strategy (Real estate? Market neutral? Senior loans?) could become the biggest challenge for new investors in alternatives. This is one of the most common questions I receive here at Invesco, along with how to identify the best fund managers and how to select specific alt funds for a portfolio.

Market Cap to GDP: An Updated Look at the Buffett Valuation Indicator

With the latest monthly close and the GDP Q4 Advance Estimate data, we now have an updated look at the popular "Buffett Indicator" -- the ratio of corporate equities to GDP. The current reading is 138.6%, up from 132.2% the previous quarter.

Macro Factors and their impact on Monetary Policy, the Economy, and Financial Markets

GDP growth slowed in the fourth quarter to 1.9% down from 3.5% in the third quarter. Both numbers were skewed by trade data. Third quarter GDP was lifted by .7% from the export of soybeans to South America, while imports shaved -1.7% from fourth quarter GDP.

Moving Averages: January Month-End Update

Valid until the market close on February 28, 2018.

The S&P 500 closed January with a monthly gain of 5.62% after a gain of 0.98% in December. All three S&P 500 MAs are signaling "invested" and three of five Ivy Portfolio ETFs — Vanguard Total Stock Market ETF (VTI), Vanguard FTSE All-World ex-US ETF (VEU), and PowerShares DB Commodity Index (DBC) — are signaling "invested".

Fossil Fuel Divestment – What’s Next for Investors and Advisors?

New York City will be the first city to divest from fossil fuels for its pension plans. The question is what does divestment mean? And what does divestment look like at the portfolio level?

Owens & Minor Inc.: Irresistible Yield, Irresistible Valuation

Recently, I have had several requests to write an article about Owens & Minor Inc (OMI). I had not looked at this company in a while, and boy oh, boy, was I surprised at what I found.

Ocio Innovation. What Does It Look Like?

Impactful innovation only occurs when OCIO providers work as true fiduciaries. We believe there are four OCIO innovations in particular that meet this bar.

Weighing the Week Ahead: Is this an Inflection Point for Both Stocks and the Economy?

The economic calendar is normal, but some of the results might not be released on schedule. If the government remains shut down, economic news may take a back seat to the political maneuvering. While we don’t know how that will play out, we can expect an important stream of corporate earnings reports.