After the Fed's 50-basis-point rate cut, big banks kick off earnings season amid fears that lower rates could hurt the net-interest income that propelled growth the last two years.
With storm clouds forming above equities and fixed income markets, is now the right time for institutions to grab their private credit labeled umbrella?
We have openly promoted increasing duration over the last several months. An increase may seem like an odd “wish” as it implies taking on greater price risk.
In the wake of pandemic shocks, economies appear more “normal” than at any time since 2019. Yet policy rates remain elevated.
Distressed US real estate presents one of the best opportunities in a generation – but the investment window is closing. Advisors can benefit, but given distressed investing’s complexity, it’s critical they partner with the right managers.
The 2022 broad market downturn across major asset classes came as a nasty surprise to investors. Historically, such an event is very rare, and no one was expecting to see almost all asset classes down for the year. Yet, even though it might seem as if diversification was of no help in 2022, the story changes if we look beyond the major headline asset classes.
In the last year, we’ve written about the poor performance of clean energy, while highlighting the strong long-term outlook for the sector and the attractive valuations. These are typically the sorts of things we focus on…valuations and the long-term fundamental prospects for companies. We tend to shy away from overanalyzing short-term market dynamics.
Supply chain disruptions related to the port workers’ strike loom, the impacts of which we know can be incredibly destructive.
Long-term US Treasury yields rose last week as investors digested mixed economic data that reinforced the idea of a "Goldilocks" economy.
A series of unprecedented and historic events has completely shifted the candidates and dynamics of the race for the presidency and Congress.
Should China deliver sufficient stimulus to break the cycle of tightening fiscal policy, we may find China, and emerging markets, investable again.
The puck has certainly moved since our last market commentary. This month, we argue that the needle on portfolio construction should move with it. Equities have been the driver of returns for much of the last few years.
Alpha (α) is a fundamental yet poorly understood concept in finance. Simply put, it is the difference between the return of an investment and that of a risk-adjusted benchmark. In a more advanced definition, alpha is the residual in an asset pricing equation (see Appendix A). Alpha is what active managers strive to achieve and passive managers do not pursue.
The wait is over for earnings watchers, as the latest quarterly read on US corporations kicks off with reports from JPMorgan Chase and Wells Fargo on Friday. Earnings will provide a gut check on the state of the US economy, and investors will be looking for these results to confirm the mostly improving economic data that’s been released in the last month or so.
Tougher stances on trade are a point of bipartisan agreement.
The Fed’s “recalibration” of monetary policy is more than just about shifting to rate cuts. It also involves where the policy maker is now placing its greater emphasis on setting the course for easing in the future. Rather than inflation being the primary driver in the decision-making process, labor market activity has now taken center stage, and with that, one could argue, for the Fed, it’s now about the economy.
With interest rates declining, enthusiasm for muni bond ETFs could be reborn in income investors, including retirees.
Market participation broadened beyond technology stocks during the third quarter.
On the latest edition of Market Week in Review, Investment Strategist BeiChen Lin examined the current state of the U.S. economy and outlined key investor watchpoints ahead of third-quarter earnings season.
Many emerging markets have delivered a robust performance this quarter amid a number of headwinds and we expect key geographies to build on that in the coming months.
Sports fans know that a lot can change in the fourth quarter of a game. So too for the U.S. economy, as a substantial labor action commenced the minute that calendars turned to the fourth quarter of 2024.
The jobs report closed last week with robust read outs of an official number that beat economist expectations. Below the surface, however, hours worked fell to levels often associated with recessions. This juxtaposition of more workers clocking fewer hours suggests that while employment figures are up, the quantity of work didn’t expand much.
As the November 2024 election draws near, the election outcome will profoundly affect the financial markets. Whether Donald Trump or Kamala Harris wins the presidency, each administration will bring distinct policies creating investment opportunities and potential risks for investors. With a divisive political landscape, it is crucial to understand how these potential outcomes can shape the stock market and your portfolio strategy.
Earnings season usually lasts around six weeks, so this wave of data will take us almost to Thanksgiving.
Last week marked the beginning of the end of one of the most rapid interest rate hiking cycles in U.S. history.
Real estate stocks are notoriously rate-sensitive assets. It’s not surprising the delivery of the rate cuts were beneficial to the sector.
The federal debt is already $35 trillion and currently rising by roughly $2 trillion every year – with no end in sight. As a result, some investors are worried that the US could become a 21st Century version of Argentina: completely bankrupt and unable to pay the bills.
Just like road trips can bring unexpected detours, the economy and financial markets are at their own crossroads: recession or soft landing?
We bring together historical and real-time analysis for insight into the economy, markets, and potential alpha opportunities and risks we’re watching.
Policymakers have recognized China's slower economy.
Monetary policy began to transition from restrictive to neutral last quarter, and we’re optimistic that continued easing can prevent a hard landing.
Global monetary easing and modest growth are creating a fairy tale story for investors. Their very high conviction in the outcome of that story, however, belies a number of serious risks.
The Federal Reserve began cutting interest rates. Whether the economy falls into recession, hard or soft, is anyone’s guess.
Gold and the related exchange traded funds are among this year’s best-performing assets, helped in part by interest rate cuts.
The recent fears regarding the state of the U.S. employment sector seemed to have disappeared completely this morning as markets are ‘recalibrating’ their view on the U.S. economy going forward.
How will the U.S. dollar respond to Federal Reserve rate cuts? The factors that have supported a strong dollar for years remain largely intact.
We are currently in the “everything market.” It doesn’t matter what you have probably invested in; it is currently increasing in value. However, it isn’t likely for the reasons you think. A recent Marketwatch interview with the always bullish Jim Paulson got his reasoning for the rally.
It’s my birthday week and I have guests and family gathering in the next room, so this will hopefully be a quick letter as well as ending with what will likely be controversial food for thought.
As we approach the final stretch of 2024, much of the nation’s focus is on the upcoming U.S. presidential election. But while the political landscape remains uncertain, the markets are painting a different picture. September, traditionally a sluggish month for global equities, delivered an unexpected surge.
Market conditions are shifting fast. But making impulsive changes to equity portfolios and allocations can be counterproductive.
The Wasatch team shares lessons they’ve learned on business models, portfolio management, management teams and markets.
Options-based ETFs are one of the fastest-growing categories in the market today, with product proliferation and adoption rising quickly.
Rate cut expectations pushed more investors into investment-grade corporate bonds, giving them their best quarter in nearly a year.
For registered investment advisors and others who provide financial advice, autumn is the start of a season loaded with opportunity.
If the risk of stepping too far out into the yield curve is too much to bear, consider using intermediate bond options.
Flashing green light – crowd will determine path forward.
As we look at today’s economy and financial markets, we are at a crossroads: Will it be a long straight highway to a soft landing, or will it be a bumpy road to recession?
If climate portfolios are positioned in the same giant US stocks held in broad equity allocations, investors may unwittingly double down on risk.
When looking at the increasingly complex structure of corporate lending in the present day, it can be easy to lose sight of the purpose of private credit and its lasting value to investors.
Investors can use this Natixis ETF to lock in robust income and capital appreciation, while generating security against equity volatility.
