In high yield specifically, investors tend to think about it as a risky way to play fixed income. But we like to turn that thinking on its head, actually: that you should think about it as a way to de-risk your overall portfolio rather than to re-risk your fixed-income side.
While the new US infrastructure investment bill didn’t have any initiatives directly targeting the municipal bond market, there are still implications for munis in the longer term, according to our Municipal Bond Director of Research Jennifer Johnston. She explains the ramifications for investors in the space.
The government reported last week that US Gross Domestic Product rose at an annual rate of 2.1% in the 3Q, up ever so slightly from its initial report of 2.0% late last month.
In the second year of a pandemic that began by wiping out 20 million jobs, American workers are doing surprisingly well. It’s just that American business is doing even better.
U.S. consumer confidence decreased to a nine-month low in November as accelerating inflation and a pickup in Covid-19 cases weighed on Americans’ views on the economy.
The justification for the 4% rule was based upon historical investment performance from 1925 to 1995. But what is the value of relying on those results when today’s economy is so different?
Bear with us as (no pun intended) you read this longer-than-usual outlook!
Rick Rieder and team examine the parallels, or lack of them, between the economy, markets and policy of the 1970s and today.
As the last wave of baby boomers heads into retirement, the need for a consistent and reliable stream of income is growing. Advisors seeking a balance between generating income and providing for future growth may want to consider income-focused model strategies.
During his second inaugural address, President Abraham Lincoln proclaimed that America should serve its soldiers long after they were done serving it. Coming just weeks before final victory in a gruesome civil war that killed at least 750,000, his words would become the motto for the Department of Veterans Affairs.
The countdown to the end of the year always comes with gobs of generic tax advice. Maximize 401(k) contributions. Deplete flexible savings accounts. Lock in stock losses to offset capital gains.
Vast sums are now pointed in the direction of reaching net-zero emissions by 2050. That’s good news: We require somewhere between $100 to $150 trillion in climate investment over the next three decades, and ignoring global warming would prove a costly and potentially irreversible cataclysm.
Once started, wage-price spirals are hard to stop.
Do you believe any advisor can become a strong salesperson?
Recently, a highly respected financial publisher issued a research paper claiming that the “safe” withdrawal rate could be as low as 3.3%. I recently increased my estimate of the “worst-case” withdrawal rate to 4.7%. How do we make sense of these two widely disparate results?
Could the Fed trigger the next “financial crisis” as they begin to hike interest rates? Such is certainly a question worth asking as we look back at the Fed’s history of previous monetary actions.
U.S. and global stocks fell sharply Friday amid spiking fears about a new COVID variant, named Omicron, emanating from South Africa, where it’s spreading quickly. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite indices closed down more than 2%, while the Russell 2000 fell nearly 4%.
In this video I present 8 undervalued dividend growth stocks with dividend yields ranging from 2.51% to 5.11%. All these companies are undervalued in what is a very overheated stock market today.
Depending upon the decisions advisors make in the near term, their practices will either be setup for monumental growth or inevitable decline.
Investors should not be intimidated by high inflation rates. You can invest intelligently and maximize profits during challenging periods.
The charts and comments below are drawn from the “Clips That Matter” feature of our Over My Shoulder service. Because we know a picture is worth a thousand words, my co-editor Patrick Watson and I select a few important charts and graphics and send them to subscribers each week with some brief comments. Many say these clips are their favorite part of the service.
I hope everyone had a wonderful Thanksgiving full of family, love and laughter! Even if that wasn’t your experience, there’s still much to be grateful for.
The last 20 months have taught us to question everything. What is the future of work? Can American democracy survive? Will Baby Boomers keep consuming more than their fair share? And what comes after “trillion”? Howard Marks’s latest memo examines paradigm shifts that could reshape the economy, markets and the world for many years to come.
Before those celebrating Thanksgiving reach for a second slice of pecan pie, they should consider this: A 55-year-old woman with Type 2 diabetes will pay an average of $3,470 more a year in medical-related expenses, or close to $160,000 in total, than if she didn't have the disease.
Private equity firms, along with hedge funds, are significantly ramping up the amount they’re willing to pay specialists in sustainable finance, as a field once at the lower end of the pay scale moves closer to the top.
The surge in U.S. inflation is sending some of the biggest names on Wall Street into rethink mode, forcing them to recalibrate strategies that depended on bonds as a shock absorber against equity downturns.
With the financial independence, retire early (FIRE) movement on the rise, Americans are targeting early retirement. I will explain the FIRE movement, the steps you can take for early retirement, and how an anti-financial plan helps you achieve your goals.
Enjoy the latest Newsletter from Harold Evensky.
With inflation surprising to the upside and lasting longer than most expect, we believe investors will need to rethink portfolio management and what it means to own a balanced portfolio. Michael Contopoulos's latest report addresses investors' many questions related to our view on inflation and its implications for the future.
There has been some very big news regarding the so-called “generic ballot” recently. I’ll share that news in just a moment. But what has surprised me the most recently is how few adults even know what the generic ballot is, much less how to follow it on a regular or even occasional basis and why it is so important.
Bankers are repackaging everything from fast food franchises to fitness-center fees into bonds at the fastest clip since the global financial crisis as investors chase yield and inflation protection.
A high tide of growth, aided by a sea change in fiscal policy, is likely to help float the global economy safely over the rocks of risks in 2022, despite waves of worries emanating from COVID, inflation, shortages, and rate hikes.
In this video, I will be comparing the investment merit of Bank of America Corp. versus Citigroup Inc. I will be comparing these two money center banks and evaluating them based on income, growth, and total return potential.
Moderate inflation can be good, especially for some value stocks. Christian Correa breaks down why investors should not be afraid of the current inflationary or rising rate environments and explains how they can actually help some businesses and areas of the equity market.
In this latest survey, 53 leading bond and currency managers considered valuations, expectations and outlooks for the coming months. With the economic recovery undeniably ramping up, we asked managers for their thoughts on valuations in the markets.
Current low yields and tight spreads in the municipal bond market have made it difficult for investors to find opportunities to earn attractive interest income on their investments. We expect that to change in 2022.
As more and more advisors come to understand the compelling investment case for dedicating a portion of client portfolios to life settlements, the inevitable next question is where those assets fit in a portfolio allocation framework.
The message from two new pieces of proposed Social Security legislation is clear: We have passed the point where we can expand benefits.
The pandemic is over. The pandemic is not over. The transition from the pandemic to the endemic phase of Covid-19 is rife with uncertainty and confusion. This is why the world economy, and particularly the U.S. labor market, look so weird right now.
You can learn a lot by talking to people. The economy is “strong,” but also “terrible.” Higher inflation is “transitory,” but also “likely to persist.” Fed policy is “behind the curve,” but also “appropriately positioned.” In truth, the outlook for growth, inflation, and monetary policy is evolving.
While “growth” and “value” have typically been seen as distinct styles, that type of thinking continues to evolve, according to our investment professionals.
In some simplistic economic theories, shortages never happen. Supply and demand for any particular good are always perfectly balanced in a given time and place. If you can’t get what you demand at that moment, you pay a higher price or you demand something else.
The average cost of a typical holiday feast has increased 14% compared to Thanksgiving last. The price of the turkey alone is up 24%, which is nearly four times the official inflation rate.
Luxury goods sales just went from dip to rip.
Bill Zox and John McClain, portfolio managers with Brandywine Global, join Amer Hasan to discuss how current market and economic conditions could benefit high yield investors, the opportunities and risks right now, and why the asset class is often overlooked or misunderstood.
With major central banks likely to exercise patience in the face of price pressures, inflation-linked assets may be attractive allocations.
Women in the U.S. have been among those hardest hit economically by the Covid-19 pandemic, knocked out of the workforce by the double whammy of a child care crisis and the pandemic recession.
Inflation is why the 4% rule never made any sense.
As Democrats haggle over the future of the controversial state and local tax deduction, it's worth remembering that the current cap of $10,000 isn't adjusted for inflation.
The Wall Street Journal recently ran an article revisiting an old retirement income rule of thumb. “The 4% Retirement Rule is in Doubt. Will Your Nest Egg Last? A well-established strategy for funding our golden years is no longer foolproof. Retirees need to get creative.”
