As we begin 2022, there is a lot of noise in the marketplace: midterm elections, omicron and everything in between.
From 2008 onward, U.S. market returns have been strong and consistent, and 2021 was no different, with the S&P 500 returning a solid 29%.
We have never seen anything like this. Governments and their central banks injected approximately $30 trillion of fiscal and monetary stimulus into the global economy from February 2020 to the end of 2021.
The Federal Reserve has indicated it plans to start raising short-term interest rates soon.
So-called “green” stocks that have a good environmental, social and governance (ESG) profile have lower expected returns. But new research shows that they also have less risk and similar risk-adjusted returns to “brown” stocks.
Investors have already started positioning for a new Fed tightening cycle as well as sticky inflation. Many are rotating into real assets, including gold and real estate, which have inherent value outside of the traditional financial system.
ETFs are a negligible owner of US stocks. Primary and secondary ETF trading has not grown quicker than total stock trading. The impact of ETFs on stocks is less strong than frequently suggested.
The term direct indexing is somewhat of a misnomer.
Companies are buying raw and intermediate goods at a record pace, which we believe will influence economic growth in 2022.
A portfolio’s return is driven by its investment strategy—a set of decisions that governs allocation and timing of capital among the portfolio’s positions.
With January being a month for prognostications, David Mann, our Head of Global Exchange-Traded Funds (ETFs) Capital Markets, shares his annual outlook for the ETF industry and key trends he sees taking shape in 2022.
A booming $4.9 trillion branch of the U.S. asset management industry is funneling investor cash into funds that are pricier and worse-performing than alternatives, new research claims.
Passive ETFs are hiding a bear market in stocks.
Impact investing seeks to achieve social good, but new research shows that it has had a negligible effect on the cost of capital for so-called “brown” companies.
Investing in ESG funds is like trying to navigate “the Wild West” as both regulations and enforcement fall short, according to Andrew Behar, the chief executive of As You Sow.
Monetary policy has driven U.S. stock prices to excessive valuations, according to Jeffrey Gundlach. But they remain cheap relative to bonds.
Assuming the value that clients obtain from an advisor is distributed in a bell-shaped curve, the average client obtains considerable value from the average advisor – and even from a mediocre one.
Leveraged loan supply and demand experienced a banner year in 2021.
I predicted that 2021 would be a transitional year for managing an advisory business, and I expect this transition to accelerate and become fully formed in 2022. These are the changes that I envision for the coming year and beyond.
Finding the right professional to manage your finances is challenging. Financial professionals have many different titles, certifications and qualifications, but which type is right for you?
Equities have enjoyed strong gains since the pandemic low of 2020, aided by massive monetary and fiscal stimulus, excess consumer savings, and incredibly negative real policy rates and bond yields.
Soon – within the next two years – the SEC will wake up and start holding financial advisors who use TAMPs to the same fiduciary standards they hold them to in selecting mutual funds, ETFs, and other investment products. When it does, many advisors will be in trouble.
Northern Trust, one of the world’s largest asset managers, foresees 2022 as a year of transitions. Central bank fiscal policy might become less accommodative or stimulative through a reduction in bond purchases. After years of virtually no inflation, investors are becoming more aware of the importance of hedging against it, given its recent sharp emergence. While there are indications of inflationary pressures decreasing in key supply chain bottlenecks, this is countered by strong housing and labor markets.
New research confirms that investing with an environmental, social and governance (ESG) mandate does not lead to higher risk-adjusted returns. But investors will reduce exposure to climate-related risks and get the “psychic” benefit of making a positive impact for society.
In this interview, Spencer Logan discusses Harbor Capital’s recent launch of an active transparent ETF that uses a scientific approach to fixed income investing.
As the end of 2021 draws near, investors are pleased with the impressive performance posted by most asset classes, but we are still awaiting the transition to the endemic state of the virus.
The purpose of this whitepaper is to highlight the development of values-based investing at a summary level and, more importantly, provide research that indicates there is no sacrifice of investment returns in adopting a faith-based approach to values investing.
What might equity investors expect in 2022? Active stock picker Tony DeSpirito reviews the potential positives and impediments in his Q1 market outlook.
It’s well studied that factors like debt and financial uncertainty impact the way people feel about retirement and prepare for it. In this series, BlackRock explores insights from our 2021 DC Pulse research and additional work with the Employee Benefit Research Institute (EBRI) to recognize inequitable effects and find ways to build a better retirement for all.
The fund is rated 5 stars in the Small Cap Growth category for the 5-Year, 3-Year, & Overall Periods. As of November 30, 2021, the fund was rated against 507 small cap growth funds in the 5-year category and 574 funds in the 3-year and overall categories, based on total returns.
Don’t let the rush of the holidays deter you from engaging with clients on one of the most important financial planning topics—charitable giving. This article offers four ways advisors can deepen client relationships and help clients expand the impact of their philanthropy.
New research on corporate bonds shows that investors driven by ESG mandates have reduced the cost of capital for “green” companies – thereby achieving their goal of addressing concerns around climate change.
There are a number of key investment themes for 2022 I feel most people would agree on. Below are just a handful.
Given all the municipal bonds to choose from, how do you decide which ones should make up the core of your portfolio? With $3.9 trillion of muni debt outstanding1 spread among tens of thousands of issuers, the choice may seem daunting, but we’ll help you break it down.
Historically, fourth quarter tax loss selling of closed-end funds (“CEFs”) has been prevalent in the market. CEFs may be more susceptible to tax loss selling given they trade on a stock exchange and market prices (investor return) can deviate from underlying net asset values (“NAVs”) (fund return).
Taxable assets make up nearly half of the U.S. mutual fund universe. Helping your clients reduce the tax bite on these assets could help you differentiate your value proposition.
Inflation continues to be a concern these days, and many investors are looking for investments that can keep pace with, or hopefully beat, the rate of inflation. As a result, Treasury Inflation-Protected Securities, or TIPS, have become a popular investment option.
Wall Street is trying to bottle ESG, but ESG has other ideas.
Interest rates were mixed in November, as shorter maturity yields continued to rise while longer maturity yields fell further. The continued flattening of the yield curve reflects the market’s expectation that the Fed will be more aggressive in their tapering of official purchases and potentially raise the fed funds target rate more quickly and aggressively than previously thought.
While I’m a huge proponent of passive and factor investing, the argument that direct indexing is akin to active management is imprecise.
The employers who kept DB plans without adequately funding them and/or generating returns sufficient to pay the promised benefits. It is a systemic problem that affects others. Today we’ll discuss this problem and some of its macro-level consequences.
Bear with us as (no pun intended) you read this longer-than-usual outlook!
Research shows that funds with positive Morningstar sustainability ratings deliver inferior performance. Nonetheless, funds have sought to increase their holdings of “green” stocks to improve those ratings and have benefited from additional asset flows.
The climate crisis has provoked a debate about whether asset managers should disinvest from the most polluting companies or use their influence as shareholders to persuade firms to curb their carbon emissions.
Will Consensus on Electric Vehicles, Solar and Wind Crush Investors? How similar is cleantech today to 1999?
When guiding advisors on how to transition their practices to the RIA model, this is a question I commonly address.
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.
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’ve researched the nuts and bolts of cryptocurrencies and considered whether you should invest in them. Now you want to participate in the cryptocurrencies market. How do you do it?
Bitcoin and other cryptocurrencies have been growing in popularity, but if you’re considering investing in them, there are some key things you should know first.
