With yields at current levels, bond funds can lock in longer term yields, offer price appreciation potential and overall serve as a hedge against a possible hard landing. Though elevated cash balances worked during the Fed’s hiking cycle, we believe now is an opportunity for clients to consider adding duration given the potential for a Fed pause.
Those that argue for lower rates have to counter the inexorable upward climb in Treasury supply and the likely Sisyphean decline in bond prices. Total Return is dead. Don’t let them sell you a bond fund.
April’s sell-off isn’t dissuading investors from taking a closer look at adding bonds to their portfolio. The price dip is giving prospective bond investors a chance to take action on higher yields now before the U.S. Federal Reserve eventually cuts rates.
Inflation and interest rate hikes have not been kind to REITs and the funds that own them. However, their low valuations could indicate an opportunity for investors.
As expected, the Federal Reserve kept its policy rate unchanged at the May meeting, but left the door open to rate cuts later this year if inflation declines.
Private markets have been viewed by institutional investors as key to a well-diversified portfolio. Benefits of these strategies: long-term outperformance over public markets, with increasingly important diversification benefits as the universe of publicly traded stocks continues shrinking and performance becomes increasingly concentrated to a few mega-cap tech companies.
It makes sense that longer-maturity bonds typically provide higher yields than shorter-term bonds. After all, more bad things can happen in a longer period than a shorter one, and visibility is poorer for the next 10 years than for tomorrow. Investors expect to be paid for these risks.
The S&P 500 experienced its first 5% pullback since October 2023, but the long-term outlook remains positive.
Understanding the broader tax benefits, 529 plans may be a more tax-efficient way to save for college than custodial accounts. Our Wealth Planning Director Bill Cass highlights several reasons to consider this strategy.
India is a long-term structural investment story but it isn’t cheap. To get the most from India we believe investors should adopt a selective approach in order to stay aligned with the country’s long-term value creation while not being distracted or paying too much for shorter-term, lower-growth opportunities.
For investors considering adding small-cap stocks to their equity portfolios, we suggest they do it selectively, steering clear of more speculative investments.
Once again, the Fed kept rates unchanged at the May FOMC meeting. As a result, the Fed Funds trading range remains in the 5.25% to 5.50% band introduced in July 2023 and still resides at a more than 20-year high-water mark.
One of the main advantages of constructing a portfolio of individual bonds is that it can be customized to meet the precise needs, wants, and objectives of the investor
Emerging-market (EM) corporate bonds are too-often overlooked by investors who presume the asset class is too niche or too risky. But the aggregate fundamentals of EM corporates are stronger than those of their developed-market counterparts.
No shortage of things to discuss after today’s Fed statement and subsequent press conference.
How and why more advisors are tapping into alternatives—Tony Davidow, Senior Alternatives Investment Strategist at Franklin Templeton Institute, shares insights from a recent gathering.
The first-quarter GDP report supports the view that the US economy has not landed. While some economists are concerned about stagflation, the real worry is that taming price pressures may require a mild downturn, given strong consumer spending and inadequately restrictive monetary policy.
Despite lingering economic fears, concerns over the timing and pace of rate cuts, sticky inflation reports, a crisis in the Middle East, and a looming close U.S. presidential election, stocks marched higher, and sentiment remained optimistic.
Having played sports my whole life, there is hardly an outdoor activity which I haven’t tried. I have been known to skip irksome social gatherings just to get out on to the fields.
On the latest edition of Market Week in Review, Investment Strategist BeiChen Lin and Sophie Antal-Gilbert, Head of AIS Portfolio & Business Consulting, discussed the U.S. first-quarter gross domestic product reading. They also reviewed the latest U.S. inflation data and provided an update on U.S. first-quarter earnings season.
High quality short-term bonds offer a number portfolio benefits while putting excess cash to work, but what's under the hood matters.
Looking to make a midcap allocation? Midcaps can stand out relative to small- or large-caps thanks to its combination of growth and size.
Elevated all-in yields in high yield credit present an attractive opportunity for income-seeking investors to lock in higher levels of income. Of course, that comes with a much higher degree of risk as compared to sitting in cash.
First-quarter earnings results have been healthy thus far, but key to the ongoing rally will be companies' recovery in revenue growth and strengthening forward guidance.
Attention-grabbing performances from the likes of Microsoft, Google, and Tesla swayed market sentiments back to growth.
Our top five picks for events that have the potential to be market moving.
Much like the NFL draft, portfolio managers undergo rigorous evaluations. Their track record, investment process, and stock selection process are considered. Additionally, qualitative assessments, including manager interviews and onsite visits, offer insights into their character and decision-making prowess.
The most interesting thing about 1968-1969 was the agreement about the stock market future between the greatest growth investor at that time, T. Rowe Price, and the greatest value investor of all time, Warren Buffett.
Government economic intervention has persisted since the pandemic.
Stocks have been buoyant this year, but market conditions are still in flux. Looking at equity factors can help investors make informed judgments about how allocations are prepared for different scenarios.
VettaFi examines the growth in data centers as a demand driver for natural gas and potential benefits for midstream.
The elephant in the emerging markets room is China, and not just because it’s the world’s second-largest economy behind only the U.S.
While high-yield implies higher risk when it comes to bonds, HYD, which turned 15 years old in February, isn’t excessively risky.
This article takes a deep look at three important economic releases from the past week: PCE, GDP, and consumer sentiment.
The reaction from markets to the release of Q1 2024 real GDP results has given every sector of the market another chance to give their own interpretation of what is coming regarding Federal Reserve (Fed) policy, inflation, and the federal funds rate.
Until recently, any suggestion of fiscal prudence was quickly dismissed as “austerity” by economists on the left. But with higher interest rates fast becoming the new normal, the idea that any economic problem can be solved with more government borrowing has become untenable.
Austrian Economics argues that growth comes from innovation and entrepreneurship, with “the market” directing resources to areas of the economy that provide the greatest returns.
In September, we wrote a piece discussing some of the growing pains that have impacted clean energy in the last few years. Despite what we believe are compelling long-term growth prospects, the sector has continued to struggle over the past two quarters.
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.
Various methods to estimate this key bond market gauge differ on details but appear to signal rising investor compensation.
In this video, Chuck Carnevale, Co-Founder of FAST Graphs, a.k.a. Mr. Valuation will go over what is the correct discount rate to use to determine NPV of a stock.
Financial stability is much improved since last year's stress.
Is this just a correction after a strong bullish advance from November, or is the bull market ending?
Following yet another release of US macroeconomic data that lies outside the range that anyone had predicted, the only certainty is that forecasters' jobs are not getting any easier. But while the global outlook is growing murkier, it has not become inscrutable.
This week is part two of our conversation about alternative investments. As I pointed out last week, this space has evolved into a distinct asset class of its own. I believe investors need to understand the good, the bad, and the ugly aspects of investing in alternatives.
In case you missed it, a $5 trillion tax hike looms over American households and businesses in President Joe Biden’s latest budget proposal, which would include a 25% annual minimum tax on unrealized capital gains for individuals with incomes and assets exceeding $100 million.
While climate-related disasters and record temperatures intensify around the world, commitments to decarbonization initiatives from governments and businesses seek to address the most pressing challenges.
India's economic journey over the last decade has been remarkable and it’s just getting started.
Another strong quarter in markets led to another stellar performance for the Momentum and Growth factors.
As equity volatility and market uncertainty continue, investors increasingly turn to equity income strategies for opportunity.
