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?
There are many historical relationships within financial markets based on sound economic theory, which accordingly repeat cycle after cycle. High yield bonds and small cap stocks typically move in line with each other, but the two have diverged since 2022.
One of our main contentions in recent months is that the Federal Reserve, by switching from a scarce reserve model to an abundant reserve model, has completely taken over the short-term interest rates marketplace.
The story that captured all media attention last week was Donald Trump’s guilty verdict. But the Trump conviction had no effect on the markets or predicted probabilities in betting markets for him becoming president.
On the latest edition of Market Week in Review, Chief Investment Strategist for North America, Paul Eitelman, and Equity Manager Research Analyst Michelle Batjargal discussed the results of first-quarter earnings season around the globe.
Despite the falling yield spreads, investors continue to bet on rising prices in emerging markets (EM) bonds.
Our outlook on the 11 S&P 500 equity sectors.
Investors’ enthusiasm for artificial intelligence (AI) equities remains undaunted.
Survey after survey has been indicating that Americans feel worse off today compared to the recent past; so much so that many of them indicate the economy is currently in recession, that the rate of unemployment is the highest in several decades, that inflation is very high today, etc.
Portfolio Manager John Lloyd discusses two important considerations for investors who feel like they may have missed the market rally.
Investors are reconsidering long-term capital commitments.
Emerging markets can offer traders the ability to play off strength outside U.S. borders, and with leveraged ETFs.
As measured by the Russell 2000 Index, small-caps have offered barely any upside this year.
Corporate greed is not causing inflation, despite the claims of many on the political left who failed to understand the very basics of economic supply and demand.
Data is important but not everything. Perceptions matter, too. Today we’ll look at how people feel inflation and what it may mean in the years to come.
To help put things in perspective, ChatGPT currently has over 180 million users, but there are around 5.3 billion internet users around the world. Imagine if each of them became a regular user of energy-intensive ChatGPT, whose servers are located in the U.S., according to owner OpenAI.
While the money and bond markets continue their Fed-watch saga, there is one constant that we have been emphasizing for the fixed income landscape: a new rate regime.
Market inefficiencies create opportunities for active managers. We believe there are more mispriced companies in small cap growth than in other equity markets, and we have developed an approach that allows us to capitalize consistently when we find them.
From potentially brand-damaging ethical risks to regulatory uncertainty, AI poses challenges for investors. But there is a path forward.
It’s natural to avoid loss, but sitting on the sidelines out of fear might lead to missed financial goals.
Discounted municipal bonds could expose you to unexpected taxes. Here's what to know before you buy.
David Dali, Head of Portfolio Strategy, provides his 12-month outlook for global equity markets.
When it comes to investing in consumer debt, headlines may be misleading. We see opportunity.
Today’s value stocks offer a magnificent mix of quality, forward-looking profitable firms.
As calls for diversification get louder, it’s a good time to look at healthcare, where long-term bullish trends meet near-term opportunities.
Andy Rothman says China’s moves to address key challenges in its housing sector mark a significant shift from its stance of downplaying problems and signal that further positive macro measures may be on the way.
Three key reasons why investors should consider allocating capital to private credit for substantial and differentiated returns.
One pairing of disruptive technologies that could ascend to an enviable status is artificial intelligence (AI) and blockchain.
Renewable energy ETFs are making a comeback after a dismal showing in the first half of the year, fueled by the rising tide of bullishness over artificial intelligence.
Predicting Fed rate changes may be an inexact exercise, but understanding how the tools that do track it work can help investors weather uncertain markets.
Our actively managed equity funds that employ machine learning (ML)—and their shareholders—are starting to benefit, according to Cesar Orosco, CFA, and Scott Rodemer, CFA, of Vanguard’s Quantitative Equity Group (QEG). The group develops quantitative models that attempt to replicate what a good fundamental investor would do, but systematically and at scale.
The Federal Open Market Committee is always data-dependent. But the dependency is not always the same. There are times when inflation matters more than the labor market, and times when the situation is reversed. Every regime is unique. There is never a perfect corollary to a previous experience. This time is not different.
While rules-based monetary policy thrived when globalization put downward pressure on inflation, the COVID-19 pandemic has revived central bankers’ long-dormant preference for inflationary policies. This shift may help central banks maintain their independence, but it also increases the likelihood of another surge of price growth.
Home equity lending does not require policy support.
Since the Global Financial Crisis of 2007-09, fixed income investors have suffered the worst of both worlds. For a dozen years they endured the stingiest of yields on their fixed income holdings.
The highlight of last week was a showdown between two of the major forces in the markets: AI earnings vs. economic data.
Personalized messaging has a powerful impact. Our Kevin Murphy believes it is time for the financial services industry to deliver personalized solutions and advice.
Market factors are constantly changing and require monitoring, analysis, and flexibility by the investors when it comes to choosing appropriate investments.
Last week, the SEC approved the initial regulatory filings for spot ethereum ETFs to trade on various U.S.-based exchanges.
As we discussed recently, Wall Street economists increasingly believe the risk of recession has fallen sharply.
You can get rich in investing in growth stocks – people have done it for decades, but you’ve got to pick the right ones and you also need to make sure that you are buying them when the prices and values make sense – growth stocks at a reasonable price!
America’s political leaders have resorted to playing the blame game to convince voters that they are fixing the country’s trade deficit. But by going after China, they are ignoring the root of the problem – the American government’s unchecked spending – while increasing the risk of a full-blown superpower conflict.
As we set our sights on the summer, here are five dynamics that could drive the financial markets between Memorial Day and Labor Day:
The news of Bill Walton’s death from brain cancer hit me hard. In the Portland Memorial Coliseum, there were 12,665 seats, and I had one of those top-row nose-bleed seats for the sixth game of the NBA finals in 1977.
Ross Riskin's op-ed examines the potential drawbacks of using glide path portfolios in 529 college savings plans, particularly during high-interest rate environments. He suggests that money market options may offer better capital preservation for funds needed during college enrollment, emphasizing the shift from growth to stability in investment strategies.
High-net-worth investors and family offices are increasingly interested in alternatives, including tokenized assets. As this interest grows, partnering with adaptable jurisdictions is crucial for navigating market uncertainties and leveraging these emerging investment opportunities.
Our recent 529 Month webinar focused on how 529 plans are used, the impact on federal financial aid, and expanded uses. Here are some of the leading topics discussed.
When the economy is picking up steam, growth stocks offer the potential to capture market gains. But hallmarks of quality—including sustained earnings growth and sound underlying fundamentals—may help weather economic headwinds.
Potential spot ether and spot bitcoin ETFs share some similarities but foundational cryptocurrency differences matter for investors.
Disruptive theme of the week: A confluence of factors have combined to make defense technology a compelling ETF investment theme.
