Commentary

Four Potential Solutions to Concentrated Stock Positions

Many investors hold a concentrated stock position that represents a large percentage—typically 10% to 20%—of their overall portfolio value. Let’s review the risks of concentrated positions and then survey some of the possible solutions.

Commentary

Gradually then Suddenly: US Debt and Deficits

Ongoing budget deficits linger amid the post-COVID economic recovery. While markets appear unconcerned now, the accumulation of debt may exhaust investor patience. Anxiety about the sustainability of the nation’s debt could escalate with the upcoming elections in November. In part one of our series, let’s look at fiscal policy and Treasury debt.

Commentary

Midyear Fixed Income Outlook: Solid but Slowing, a Favorable Environment for Fixed Income

Market expectations for Federal Reserve rate cuts in 2024 have shifted dramatically, from six cuts expected at the start of the year, to barely one or two at this writing. Here’s why we think the US economy’s resilience and the year-to-date increase in yields may prolong an attractive opportunity in fixed income.

Commentary

Midyear Commodity Outlook: Are Higher Rates Masking Tight Inventories?

As we move into the second half of 2024, let’s take a look at a familiar market dynamic that’s often misunderstood in commodity investing: Current inventory levels may be much tighter than futures curves are signaling.

Commentary

Can Tight Spreads Still Deliver Excess Returns?

Over the past 18 months, investment grade (IG) corporate credit spreads have narrowed considerably in response to solid fundamentals and a strong economy. Given the tight spread levels, should investors reconsider the attractiveness of owning corporate bonds and instead buy Treasury securities?

Commentary

Reiterating the Case for Preferred Securities

Recent challenges from higher rates and banking turmoil are well known to investors in preferred securities, but the performance of this asset class relative to other alternatives in fixed income may not be. Here’s why we think preferreds continue to offer attractive total return potential and a tax-advantaged income stream.

Commentary

What Is Direct Indexing?

If you’re not sure what direct indexing means, you’re not alone. Even after the recent growth, direct indexing remains relatively unknown. As our compliance team never fails to remind us, you can’t invest directly in an index. So what exactly is direct indexing?

Commentary

What Is Impact Investing?

What do people really mean when they talk about impact investing? Typically they’re referring to investments made with the intention of generating measurable social or environmental benefits in addition to financial return.

Commentary

Avoid a Big January Tax Bill Without Sacrificing Performance

For many investors and financial advisors, December is the big month for tax-loss harvesting. But there can be negative consequences because of the wash-sales rules. A more effective way to manage taxes is harvesting losses all year long.

Commentary

Four Arguments for Investing in, or Staying in Commodities

Commodities have become a hated asset class, with cumulative losses totaling over 50% during the last 5 years. Despite recent returns, a strategic allocation to the commodity asset class still makes sense for many investors given its desirable combination of inflation protection and low correlation with the equity and fixed-income asset classes. Although poor performance in commodities may raise the question of why any such allocation should even exist, it ignores the fact that diversification is a useful tool for dealing with an unknown future, and always looks somewhat damaging in retrospect. The article provides four reasons for why current investors should remain invested and why everyone else should consider the current environment as an opportunity to add commodity exposure to their portfolios.
Commentary

Reduce Drag on Performance through Tax Managed Indexing

Tax changes in recent years have hit high-income earners, including investment income. These include an additional Medicare surtax, a new top rate for dividends and long-term capital gains, and the phase out of itemized deductions for affluent taxpayers. It’s increasingly important for advisors to help clients identify strategies to help them invest more tax efficiently.