Shelton Capital Management

Jacoby looks at current macroeconomic dynamics through the lens of the movie, “A Bronx Tale,” Robert Di Nero’s directorial debut.

The 60/40 portfolio has long been the foundation of portfolio construction. But over the past two years, this portfolio strategy has broken down. The 60/40 portfolio faces several challenges. To understand what might lie ahead, investors need to assess both recent inflationary forces and historic trends.

The U.S. dollar has dropped to its lowest level against other currencies in 15 months. In this environment, a wide range of assets stand to profit, not least of which is the AI-infused U.S. technology sector. However, no space stands more ready to benefit from this environment than emerging markets..

Advisors parking cash in short-term T-Bills yielding are missing out on potential capital appreciation. The current fixed income market provides an opportunity not seen since the financial crisis to earn total return from longer-dated, high-duration bonds.

The Cboe's new 1-Day Volatility Index, launched on April 24, and was built to measure the expected volatility of the S&P 500 over the next day of trading. VIX1D is a response to a surge in the use of extremely short-dated options.

Investors are still recovering from the municipal market beatdown of 2022, but the current higher absolute yield levels provide an attractive “re-entry” point for municipal market investors.

The current market environment is attractive for a covered call strategy.

Has the global investment environment which we have grown accustomed to over the past few decades fundamentally changed?

In a market environment of low bond yields and record high equity valuations, it’s time to look beyond simple asset-class diversification. A covered call strategy could provide clients with potential for growth, income and downside protection.

Congressional wrangling over the Infrastructure Investment and Jobs Act and the Build Back Better Act has imposed a level of uncertainty on the municipal market as well – for both issuers and investors. It would be most prudent to move forward with IIJA on its own and follow up with Build Back Better separately. After all, they say “a bird in the hand ….”

How can financial advisors best help their clients navigate the ESG municipal bond world? The number one thing to do is to carefully LISTEN to their clients.

Sustainable investing in the United States continues to accelerate at a rapid pace. Here, we dive into the sustainable investing landscape and how the Shelton Green Alpha Fund (NEXTX) fits in a client portfolio with Portfolio Manager, Garvin Jabusch. NEXTX was the top U.S. Equity ESG Fund for 2020 according to Morningstar.

At some point, interest rates will move higher. Advisors must understand the inherent risks, and proactively evaluate alternatives for their fixed income portfolios to manage through successfully.

With U.S. shares reaching lofty valuations and fundamentals firming up in many other countries, financial advisors would be wise to consider increasing a client’s non-U.S. holdings. So why do many advisors hesitate making this allocation?