Principal Financial Group® recently released the results of an extensive survey it conducted asking advisors and employers their expectations for the future of retirement. Among the key trends it identified were an aging workforce with evolving financial planning needs. At the other extreme, Gen Z workers are beginning their careers with investment and planning preferences that differ markedly from older generations. Other findings included the anticipated need for personalization, financial wellness monitoring and counseling, and better services for retirement planning.
Being presented with only two choices is a financial red flag. There is almost always at least a third choice.
Hedge funds are betting on higher Treasury yields in a market that’s divided over whether the US economy can avoid recession and Federal Reserve interest-rate cuts.
Here’s how we can improve financial planning projections to result in better forecasts, advice and guidance to households.
April is Financial Literacy month, but all that elicits from the advice industry is a collective yawn.
Chinese economic data blew expectations out of the water this week, reflecting a strong comeback for the Asian giant as it finally emerges from the world’s most restrictive pandemic-era lockdown.
China’s economy has turned the corner, and is on a path towards a gradual, domestic demand-driven recovery. Andy Rothman outlines the reasons why China’s recovery is likely to be sustainable.
Can central banks simultaneously provide liquidity to banks suffering sharp deposit withdrawals while also slowing money and credit creation by raising interest rates? In essence, can central banks quantitatively tighten and quantitatively ease at the same time?
Corporate bond investors may be wondering if banking sector turmoil will affect financial institution bond issuers. Here's what to know now.
The top-performing advisors, the ones that are delivering the most value (as reflected by their income), are the advisors who are doing the most challenging things.
Despite continued geopolitical events and a potential banking crisis, markets remained focused on the economy and central banks’ attempts to control inflation.
Consisting of 60% stocks/40% bonds, this classic investment portfolio has historically been a trusted way to generate returns and diversify investor portfolios. However, we believe the 60/40 allocation may now be working against investors.
This year’s top US bond managers agree that Federal Reserve interest-rate cuts are inevitable this year. The main debate they see is how deep the economic pain gets.
This week as regional banks start reporting earnings we will get a better look at the lasting effects of the bank crisis kicked off by the failure of Silicon Valley Bank last month. Looking at recent earnings forecast revisions, regional banks appear particularly exposed to short- and longer-term headwinds.
Tax season isn't the only time advisors should think about how taxes may impact their client portfolios. There are various strategies advisors can use year-round to ensure they are investing in a tax-efficient manner. Helping your clients maximize their after-tax wealth is an important element of the value you provide.
The value style is in the early stages of what Mutual Series believes could be a multi-year outperformance relative to growth.
Getting lost in the moment is easy to do. When planning and executing your fixed income portfolio, looking long term is more likely to get you to your goal. Fixed income portfolio allocations are often meant to first protect principal and second, to optimize income and cash flow per your specific circumstances.
Our entire financial system revolves around credit. This includes the ability to access credit for new loans, and more importantly, the refinancing of existing loans.
Start me up! This iconic Rolling Stones song keeps racing through our minds as we glance across the investing landscape. Why? Because it feels like the drivers of this turbulent market – Federal Reserve (Fed) tightening, inflation, recession worries, geopolitical fears – will never stop.
Housing stress may spread to other sectors.
Thanks to the recent banking crisis, the Fed’s “dual mandate” has taken on a new meaning. The increased economic uncertainty during the first quarter drove investors towards safer assets, boosting investment grade bonds.
Having presided over America’s first banking crisis since 2008, Federal Reserve officials are rightly focused on reforming regulation. That said, they should keep in mind some lessons for monetary policy, too.
BlackRock Inc. strategists are ditching the 60/40 portfolio in favor of public and private investments as well as tactical holdings of bonds to navigate higher interest rates.
Two brutal weeks for banks have mostly scuttled hopes in markets that a US recession can be avoided. But a close read of the cross-asset landscape still finds investors unconvinced the stress portends a genuine financial crisis.
VettaFi’s Roxanna Islam discusses the evolving Communication Services sector, along with ETFs covering the space. Hashdex’s Marcelo Sampaio explains the first 1933 Act bitcoin futures ETF (DEFI) and offers perspective on the future of crypto. Amplify ETFs’ Christian Magoon spotlights several ETFs including the Amplify CWP Enhanced Dividend Income ETF (DIVO).
In his latest memo, Howard Marks discusses the significance of the Silicon Valley Bank collapse. He argues that it likely doesn’t portend a wave of banking failures but may amplify preexisting wariness among investors and lenders, leading to further credit tightening and additional pain across a range of industries and sectors.
With inflation easing around the world and many central banks nearing the end of their interest rate hikes, a growing chorus of investors say the best place for bond buyers to juice returns is in emerging markets.
There are a lot of dramatic and profound questions about AI, but some of the most important ones are mundane. For instance: Should AI agents, when they perform productive work, be required to pay taxes?
One of the toughest dilemmas I wrestle with is whether to consider future tax liabilities from unrealized gains in the portfolio and taxes from withdrawing from traditional retirement accounts.
Keto diets are a proven regimen to reduce weight and foster a healthy lifestyle. The financial equivalent – the keto annuity – will drive successful outcomes for your female clients and build a stronger practice.
For years, investors seeking tax-efficient income grappled with a key question: Are municipal bonds that are subject to the alternative minimum tax (AMT) worth their higher yields? After all, an attractive bond yield didn’t hold as much luster once the AMT shaved off up to 28%.
Recession odds have climbed considerably since Jerome Powell’s testimony before Congress and the latest FOMC meeting. However, the recent failures of Silicon Valley Bank (SVB) and Credit Suisse (CS), as higher rates impact regional bank liquidity, also added to the risks.
What does a potential change in Federal Reserve policy mean for markets and the economy?
Just as it is getting ever-more important to anticipate changes in Fed policy, those changes are becoming more uncertain. One way to help resolve this dilemma is by explicitly incorporating political and public policy goals into the monetary policy calculus.
The Northern Trust Economics team shares its outlook for U.S. growth, employment, interest rates and inflation.
2023 has already been an eventful year, featuring a banking crisis and more Fed rate hikes. In our view, this is not a “set it and forget it” type of market – investors need to stay vigilant.
After the market selloff in 2022—a period that was particularly hard on growth stocks—we think our companies are attractively priced for the next five years, which is our baseline investment horizon.
Given market uncertainty and the risk of a US recession, is now the time for defensive stocks? Making a case for low-volatility, high-dividend equities with Franklin Templeton Investment Solutions’ Vaneet Chadha and Michael LaBella.
The lack of diversification benefits of government bonds in 2022 was painful for multi-asset investors. The sell-off in US Treasuries in particular was sharp, and we saw correlations versus stocks move well into positive territory.
The stakes are high, and it appears likely that our deeply divided government is headed for another debt-ceiling showdown. Divided governments have typically been good for the markets; however, they often spell trouble when it comes to negotiating fiscal matters.
During his spring break, Johnson Financial Group Portfolio Manager Brian Schaefer had the time to read “A Gentleman in Moscow,” which got him thinking about the how the current market moves could impact the American experiment. In this investment commentary, Schaefer discusses the MOVE and VIX indexes and what they might say about the markets.
Two of the biggest proposals Biden introduced in his recent budget were a big increase to the long-term capital gains tax and a new tax on the wealthiest Americans.
Tax-managed investing has gained in popularity in recent years. But what exactly is a tax-managed mutual fund? We do a deep dive into the concept.
Born of the Global Financial Crisis, additional tier-1 securities were designed to absorb bank losses in times of turbulence and maintain financial safety at no cost to taxpayers. Despite good intentions, we’ve found AT1s to be flawed instruments that are contingently junior to common equity in practice.
With higher bond yields, it is instructive to understand what drives interest rates in cash sweeps.
Why finding ways to break the tie to these variables is so important, and outline a few ideas for how to do it.
Trading might be muted today as the market pivots, awaiting earnings and inflation data this week.
Doug Drabik discusses fixed income market conditions and offers insight for bond investors.
We think dividend-income strategies can be effective across multiple environments, provided that they’re designed to tap into a wider opportunity set beyond traditional dividend payers alone.
As central banks wrestle with how to respond to volatile economic data and banking turmoil, while also fighting inflation, Franklin Templeton’s economists provided their perspectives on what’s next for economic growth, interest rates, inflation and fixed income markets.
