The Mutual Funds Channel

Charitable Tax Planning Opportunity: Donate Appreciated Stock to Charity

For advisors with philanthropically-minded clients, publicly traded appreciated stock can be among the most tax-advantaged items to donate to charity. Contributing such assets may enable the donor to enjoy a current year tax deduction and potentially eliminate capital gains tax liability on the sale of the asset, while allowing the charities they support to receive the most money possible.

"Blue Skies" Thinking in China

The Chinese leadership is now promising “to make our skies blue again” in a popular move to address an issue that has given rise to public protests across China against the industrial smog that blights so many cities. The solution to a pressing economic problem is now linked to an emotive popular issue.

Households' Equity Ownership Reaches 30%. It's Statistical Noise

Households have 30% of their financial assets in equities, the same proportion as they held at bull market peaks in the 1960s and in 2007. Does this mean another bear market is imminent? No.

On My Radar: A High Probability Way to Forecast Recession (Recession? No Sign Just Yet)

One of the realities we will face is recession. The good news is that we are in the eighth year of a growth phase (the last recession was in 2009) and as you’ll see in my favorite indicator charts below, there are no current signs of recession.

China: Making solid progress on its Five-Year Plan

As the National People’s Congress convenes, we highlight three government priorities to watch.

How Do Alternative Investments Perform in a Rising Interest Rate Environment?

The proliferation of liquid alternative mutual funds happened in response to the 2008-2009 recession, which was followed by an extended period of unusually low interest rates.

Adding CEFs to a Portfolio

When adding a CEF to a portfolio, consider how the fund’s strategy may fit your overall risk exposure, says Jonathan Morgan of Canadian General Investments.

Emerging Markets Can Trump US Policy Rhetoric

We believe the consensus view of a Trump presidency translating into a blanket “stay clear of ” investing in emerging markets is overly simplistic. Our analysis of President Trump’s proposed policy of trade protectionism suggests that the impact on emerging markets is more nuanced – the vulnerability of these markets is significantly lower today than it was five years ago...

Gundlach: The 10-Year is in a “Zone of Death”

The yield on the 10-year Treasury bond has been tightly coiled in a “zone of death,” Jeffrey Gundlach said. Since the start of the year, it has traded between 2.4% and 2.5%, but it is poised to rally to 2.25% before it retreats to 3.0% by the end of the year, according to Gundlach.

Pactive® Investing

Historical studies show individual investors are very poor asset allocators, and are undoubtedly no better at selecting ETFs. At RBA, our Pactive® Management portfolios combine the benefits of low-fee, transparent and liquid passive investments with RBA’s asset allocation expertise.

When It Comes to Target-Date Funds, You Better Shop Around

Many plan sponsors are shifting away from recordkeepers’ target-date funds to nonproprietary versions. But others are still using yesterday’s model. We think it’s time to take a look around.

A Warning to the Advisory Profession: DALBAR’s Math is Wrong

DALBAR’s method for calculating average investor returns unfairly understates these returns. DALBAR does not properly calculate an internal rate-of-return for an ongoing series of cash flows, which renders its results meaningless. DALBAR’s response to this article is also provided.

The Passive Aggressive “Agg”

Peter Chiappinelli, CFA; GMO LLC discusses the common benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index (the Agg). There’s nothing passive about the Agg, as it’s aggressively been taking on more risk. There are three main reasons for this concern: the simple math of bond duration; the changing composition of the index; and the very logical financing behavior of corporate borrowers.

The Similarities (and Key Differences) Between 2017 and 2013 So Far

2017 is off to a remarkably similar start to 2013. No two years are ever exactly the same, so there's no reason to suggest that 2017 will repeat the 30% gains achieved in 2013. But many of the technical and fundamental similarities between these years suggest that 2017 may continue to be a good year. There are two watch outs, however, that make 2017 much higher risk than 2013. It's also worth recalling that equities fell 3-8% at six different points in 2013. Expecting 2017 to continue to ride smoothly higher will probably prove to be a mistake.

Capital Growth News: Snap’s IPO, Buffett’s letter and after-tax returns

Snap’s IPO, Warren Buffett’s annual shareholder letter and the looming April 18 tax deadline all impact investment decisions. Let’s explore what is happening for growth-oriented investors.