The Leveraged and Inverse Funds Channel

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.

The Sources, Benefits and Risks of Leverage

When evaluating investment strategies it’s critical to understand the nature of the leverage being used.

Being Wrong in an Interesting Way

My friend Mark Hulbert once had a philosophy professor at Oxford, who distinguished two ways of being wrong: “You can be just plain wrong, or you can be wrong in an interesting way.” In the latter case, Mark explained, correcting the wrong reveals a lot about the underlying truth.

Hedge Fund Managers Pour SALT on U.S. Stocks, Look to Europe

Europe is back on the map. That was one of the main takeaways this week from the SkyBridge Alternatives (SALT) hedge fund conference in Las Vegas, where $3 trillion in assets was represented. Speaker after speaker touted European equities for their attractive valuations and as a means to diversify away from the volatile American market in light of rising U.S. geopolitical risk. France’s election of centrist Emmanuel Macron over far-right nationalist Marine Le Pen this month has especially eased investors’ fears that antiestablishment forces would challenge the integrity of the European Union (EU).

China's Trilemma

On the surface, China continues to outperform expectations. It has sustained a high rate of economic growth for longer than most other developing countries.

Making the Trend Your Friend – How Trusted Investment Advisors Sustain 9 Lives

One might say that the most trusted investment advisors have cats’ proverbial nine lives. They are bold explorers, distinguished by their agility and uncommon ability to take on challenges with confidence and poise. And, of course, they always land on their feet. FlexShares presents 9 secular trends we believe are reshaping the investment management industry – and how trusted advisors may leverage these trends to their – and their clients’ – benefit.

Senior Loans in a Multi-Asset Portfolio?

When looking to help diversify a multi-asset portfolio, one of our experts presents the case for when and why an investor might consider senior loans.

Stronger Global Growth and Inflation Set the Stage for Bond Market Volatility

In this Q&A, Kathleen Gaffney and Henry Peabody share their outlooks for the bond market and the impact of stronger global growth, and how they seek to position the Multisector Income strategy.

Vehicle Miles Traveled: Another Look at Our Evolving Behavior

The Department of Transportation's Federal Highway Commission has released the latest report on Traffic Volume Trends, data through March. "Travel on all roads and streets changed by 0.8% (2.2 billion vehicle miles) for March 2017 as compared with March 2016." The less volatile 12-month moving average was up 0.07% month-over-month and 1.0% year-over-year. If we factor in population growth, the 12-month MA of the civilian population-adjusted data (age 16-and-over) is up just 0.005% month-over-month and up only 0.3% year-over-year.

Interest Rate Outlook: European Markets Return to Fundamentals

Invesco Fixed Income shares its views of rates around the world.

Does China Present Global Risk? The Coming Slowdown in China Could Affect the Reflation Trade

China’s GDP rose 6.9% in the first quarter, but is a slowdown coming? Emerging Markets have been on fire this year, will the rally continue? U.S. GDP is forecast to grow to 3.5% in the second, but could the delay in tax cuts dampen the rebound?

Should Investors Fear Another Watergate?

We have a very quiet week for economic reports. The housing data are quite important, but it will be a Tuesday story without legs. The White House drama will be compelling for the media. Whether investors like the idea or not, we should expect another week of news that is mostly political.

An Unexpected Change In Gold’s Seasonal Trade Pattern

As you can see in the chart below, based on data provided by Moore Research Center, the five-year pattern, represented by the orange line, is diverging from the longer-term trends. Note that the index on the left measures the greatest tendency for the asset to make a seasonal high (100) or low (0) at a given time.

Opportunities in today’s evolving fixed income market

Fixed income investing today is very different from several years ago, but this doesn’t mean there aren’t opportunities for generating returns. Rick explains.

All Asset All Access, May 2017

In this issue, Research Affiliates offers insight into its CPI-based secondary return benchmarks, its business cycle modeling and continued opportunities in emerging markets.