5 Things to Know About Emerging Markets
Emerging markets debt and equity have many overlapping traits, but also differ in their exposure to countries and risks. The MSCI Emerging Markets Index contains 27 countries, with the five largest accounting for 70% of market value. Three countries in Asia - China, South Korea and Taiwan - comprise more than 50% of the index.
Can Momentum Investing Be Saved?
Momentum is one of the most compelling factors in theoretical long–short paper portfolios, but live results of momentum strategies fall short of theoretical returns. Thoughtful implementation, a careful sell discipline, and an avoidance of stocks with stale momentum can narrow the gap between paper and live results.
10 Illustrated Truths About Investing & The Markets
This morning, as I was catching up on my reading, I stumbled onto this gem from Business Insider of an interview with the founder of Robinhood, a mobile app to let individuals trade stocks with no commissions.
Q4 Market Outlook: Six Trends to Watch
Last quarter saw stocks globally continue to rise. The relatively accommodative monetary policy environment and improved global growth were strong drivers. However, as we head into the fourth quarter, I think it’s important that we recognize the potential for greater disruption — in terms of both geopolitics and monetary policy — which can cause greater volatility in capital markets.
Weighing the Week Ahead: Can Earnings Season Spark a Big Year-End Rally?
After last week’s avalanche of economic data, the calendar is back to normal. More important is the onset of earnings season. Recent data have reassured many observers about the health of the U.S. economy. The period of seasonal weakness is ending. Expect people to be asking: Can this earnings season lead to a big year-end rally?
Weighing the Week Ahead: Does Economic Strength Equal Stock Market Strength?
It is a big week for economic data. The punditry will be analyzing the Trump tax proposal. Everyone will be drawing conclusions about how these factors may be linked with stock prices. Expect people to be asking: Does economic strength equal stock market strength?
Market Cap to GDP: An Updated Look at the Buffett Valuation Indicator
With the latest monthly close, the GDP Q2 Third Estimate data, we now have an updated look at the popular "Buffett Indicator" -- the ratio of corporate equities to GDP. The current reading is 131.5%, up from 128.7% the previous quarter.
Understanding Tail-Risk Hedges and Why They Are Attractively Priced
Tail-risk hedging strategies profit from significant market corrections. They may be used alongside or to replace traditional risk management strategies (e.g., diversification via asset allocation) where the core portfolios have a significant allocation to equities or other volatile assets. This type of insurance is now priced very attractively relative to historical levels and is a cost-effective way to insure against equity drawdowns.
13-Truths About How Money Really Works
There is an increasing amount of commentary which suggests this time is different. Active management of portfolios is no longer needed, as Central Banks continue to be supportive of the markets, so join in on the “passive indexing” sweeping the country.
Moving Averages: September Month-End Update
Valid until the market close on October 31, 2017.
The S&P 500 closed September with a monthly gain of 1.93% after a small gain of 0.05% in August. All three S&P 500 MAs are signaling "invested" and all five Ivy Portfolio ETFs — Vanguard Total Stock Market ETF (VTI), Vanguard FTSE All-World ex-US ETF (VEU), iShares Barclays 7-10 Year Treasury (IEF), and Vanguard REIT Index ETF (VNQ), and PowerShares DB Commodity Index (DBC) — are signaling "invested".
Tough Sledding in Multisector Bond Investing? It Depends on the Team
Versatile, relative-value analysis of securities across sub-sectors and hybrid asset classes can help fixed income teams negotiate a challenging, expansive, potentially rewarding terrain.
Passive Carnage Is Illogical
In Passive Carnage Is Illogical, we discuss what is driving the passive rotation, as well as how strategies and products have evolved to suit investors’ changing needs.. We also consider the importance of three disruptors in asset management that are having a remarkable influence, including: Separately Managed Accounts (SMAs), Robo-advisors (Robos), and Exchange Traded Funds (ETFs).
The Bull Market Appears Alive and Well
The steady bull market—now the second largest—continues. The Dow just had its third nine-day win streak of 2017, which hasn’t happened within a single year since 1955. Can the rally continue? While longer-term technicals do look very healthy, a closer look suggests that it has been a historically long time since even a modest correction, thus increasing the chances of a rise in volatility soon.
How to Convert an Engineer into a Client
Engineers (like all other groups) have well-defined personality traits. If you want to convert them, you need to understand what makes them tick.
What Could I Realistically Make If I Invested in Apple Today?
Just as it always does, Apple’s (AAPL) Keynote event generated quite a buzz. In addition to announcing several new products and upgrades, this year’s event inaugurated the Steve Jobs Theater at Apple Park. And as usual, reactions to the presentation have been quite strong.