The transition from LIBOR to SOFR has been slow. We present some key reasons for the delay in SOFR’s broader integration into markets. Important bottlenecks include lags in the evolution of SOFR-based swaps and derivatives markets and in the development of a term SOFR structure.
Global growth is slowing. Corporate profits are shrinking. Business investment is waning. And the seemingly-perpetual bull market, buoyed by the longest U.S. expansion on record as evidenced by the S&P 500, may be entering its final stages.
The establishment of local bond markets has been the single most important structural change in Emerging Markets (EM) in the past quarter of a century. Many investors still fear local markets due to FX volatility, but EM local bonds have performed better overall than US Treasuries and US stocks.
Choosing the wrong broker-dealer is a nightmare beyond reckoning.
A broker-dealer isn’t just somewhere to hang your licenses or clear your trades. And the best deal isn’t necessarily the one that is the most financially lucrative on paper on day one. It’s about finding an ecosystem that allows you to grow your practice to its full potential.
This webinar will be full of concrete examples of broker-dealer transitions that did and did not work out. From these real-life examples, advisors will learn how to judge a broker-dealer firm based upon the following:
Kestra Financial leads the industry in wealth management, service and technology solutions, and practice enrichment. Our independent RIA and broker/dealer services have over 20 years of industry experience and are taking flight to elevate the level of personalized service you need. To learn more about how Kestra Financial can support your business check the box in the registration form to the left.
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CFA®, CPWA®, CIMA®, CIMC®, and RMA® CE approved
Investments & Wealth Institute® accepts this webinar for 1 hour of CE credit towards the CIMA®, CPWA®, CIMC®, and RMA® certifications. If you provide the required information during the webinar registration process and stay for the entire LIVE event we will report your attendance to IWI. If you watch the ON-DEMAND event please email us at [email protected] for the IWI® webinar ID to self-report your attendance.
What distinguishes an overvalued market that continues to advance from an overvalued market that often drops like a rock? In my view, it’s the psychological disposition of investors toward speculation or risk-aversion.
One reason the economy is so fascinating is the way things just… happen. Growth blossoms if everyone just follows their own incentives and nothing gets in the way. The courage, vision and passion of entrepreneurs and those who risk their money backing them is one of the most inspiring aspects of modern civilization.
For the most part, the second quarter saw a continuation of the first quarter’s positive performance across many asset classes. This furthered a reversal of the dismal 2018 when every primary asset class was negative.
With the pound sliding to two-year lows, currency markets are signalling a higher probability of a no-deal Brexit. But the fallout from no deal would hurt the rest of Europe, too, and add to downward pressure on euro-area bond yields.
Checklist, anyone? Here’s an unconventional but effective forecasting approach that uses a simple checklist. Instead of treating the business cycle as a single, uniform force, the approach pivots on six key component cycles.
When I talk to an advisor who is unhappy with their current broker dealer firm but scared to make a change, I understand why. Here’s how I chose the wrong firm and what I would have done differently. There’s a powerful lesson in it for advisors who are making the same decision.
Now that gold has broken through the $1,450 an ounce level, a six-high year high, the next big test is $1,500. And as I’ve said before, it can do this in the blink of an eye under the right conditions.
This article is a refresh and an update of an article I originally posted in 2015. However, the principles I am presenting are timeless and worthy of being revisited. Moreover, I have updated the supporting examples to more precisely reflect our current market environment.
Passive investment funds have grown in popularity and offer one key benefit, immediate market beta. However, investors beware! A passive approach to investing in emerging markets equity has several explicit and implicit ramifications. We consider seven here.
I’m very pleased to say that a satisfactory agreement was reached between HIVE and its strategic partner, Genesis Mining, so that the company can once again return to creating value for its shareholders.
Clearly there is an opportunity for advisors to leverage Batman’s uncanny ability to adapt and prepare.
The economic calendar is a big one, featuring the employment situation report on Friday. The rest of the data – ADP employment, auto sales, and the ISM surveys – will be released over 2 ½ days. The US Independence Day celebration on Thursday will provide one type of fireworks.
Advocates of MMT insist that governments can and should print as much money as needed to fund massive public works, guarantee government jobs for the unemployed and much more. This is a recipe for runaway hyperinflation.
The “rise of the middle class” has been a ubiquitous theme touted by emerging market (EM) investors for several years.
Billionaire investor Paul Tudor Jones, founder of and hedge fund manager at Tudor Investment Corp., said this week that geopolitical disruptions have made gold his favorite trade for the next 12 to 24 months.
In good times, we often see the notion "this time it's different" work its way into the marketplace as investors seek to rationalize higher asset prices and continued upward movement. Today this sentiment is expressed in contexts ranging from questioning the prospect of a recession altogether to supporting the high valuations of tech companies despite their current profitless state. In his latest memo, Howard Marks discusses the outlook for nine such theories. It would truly have to be different this time around for them to hold.
Here’s how you can slay the tax beast and help your clients minimize the impact of taxes.
Americans’ trust in institutions, from the federal government to the news media, has been deteriorating for decades. But I continue to have great faith in gold as a store of value during times of economic and geopolitical uncertainty.
Ray Dalio is really, really wrong. He basically endorses Modern Monetary Theory (MMT).
The case for Emerging Markets external debt is solid. The long-term risk-reward has been and remains compelling. The outlook over the medium-term also favours the asset class as the unwinding of distortions in global bond markets attributable to Quantitative Easing strongly favour EM over developed markets.
Europeans went to the polls, and the results reveal continental divisions. U.S. businesses’ patience for tariffs won’t last. And what do tariffs do to prices?
Tariffs are paid by U.S.-based importing companies, which pass the extra expenses on to the end consumer. As such, tariffs are inflationary, and historically, that’s been good for gold
Primed for growth, Asia’s health care sector helps capture consumer spending in the region.
Once upon a time, US municipal bonds were generally considered less risky than corporate bonds. Backed by the full faith and credit of state governments, investors had confidence they would receive their principal plus interest without fail. Times have changed.
May’s “flash” index of U.S. manufacturers registered a sharp decline to 50.6. This is only a preliminary reading, but if it turns out to be accurate, it would mark the slowest growth in the domestic manufacturing industry since September 2009
Like Japan, the US will see yet more quantitative easing and extraordinarily low interest rates, along with annual federal deficits of $2 trillion and higher. Alternatives like restructuring the tax code and balancing the budget will be nowhere in sight.
The economic calendar is one of the lightest, and a long holiday weekend impends. How will this news vacuum be filled? Probably with celebrity news, following the latest tweets, analyzing any new Democrats running for President, and interviews with B-level guests.
Why don’t we appreciate and celebrate big business more wholeheartedly? Why do so many of us regard it as unfair, monopolistic, manipulative, impersonal, and exploitative, to say nothing of inefficient? In Big Business: A Love Letter to an American Anti-Hero, the economist and free-range intellectual Tyler Cowen poses these questions and suggests a wide assortment of answers.
This is part 19 and the final part of my series covering all the various sectors reported by FactSet. However, the popular idea of saving the best for last does not apply in this instance.
Charlie Munger set the tone for the 2019 Berkshire Hathaway Annual Meeting. He said that people involved in creating cryptocurrencies, “honored the life and work of Judas Iscariot.” On many major subjects, questions were fired at Warren Buffett and Charlie Munger related to short comings which self-proclaimed expert observers see at Berkshire
Demand stimulus has been in fashion in developed countries since the 2008/2009 financial crisis. Monetary policy in particular has been popular with zero interest rate policies and Quantitative Easing (QE) forming the backbone of macroeconomic policies in the UK, Japan, Europe and the United States. This may now be changing.
Global copper capacity could be short some 41,000 tons by as early as 2021, says one commodities research firm. Meaning: We could be looking at another commodities super-cycle, with the red metal leading the way.
Once upon a time, bonds backed by a government’s full faith and credit pledge were generally considered less risky than corporate bonds. Times have changed. In today’s political climate, not all governments inspire us with the same confidence.
The big energy news this week is that President Donald Trump moved to end all sanction waivers for nations that import Iranian oil. In response, Brent crude oil hit $75 per barrel for the first time in six months this past week.
Last week we wrote how the US dollar could be in for a major move when it breaks up or down out of the major consolidation it has been in for the better part of six months.
One billion people lack access to safe drinking water, and this number is likely to grow to nearly 3 billion by 2050. To complicate this problem, 60 percent of the world’s population lives in crowded water basins shared by multiple states — many of whom are failing or are at war with one another. There is a lack of fresh water resources to meet water demand. It affects every continent and was listed in 2015 by the World Economic Forum as the largest global risk in terms of potential impact over the next decade. My guest today invests in solutions to this looming global water crisis.
Tax-free muni bonds saw $8.8 billion in inflows in the first quarter, beating U.S. equity funds and international equity funds. Investors were seeking stability as well as a strategy to counteract the changes to the tax code.
Simply Google the phrase “what effect is Amazon having on retail” and you’ll discover a significant amount of information, articles and theories. Personally, I found the following article written by Susan Ward that articulated the sales of brick-and-mortar versus online to be quite illuminating.
The history of the stock market lays some reliable markers for long duration investors when it comes to these morals. First, in the long run, a basket of the cheapest of the stocks in the S&P 500 Index has outperformed the expensive ones by 3.6% per year...
Clearly I have been “sitting here in limbo” for the last few weeks relaxing in Key West, which is a profoundly different planet. I love it! We stayed at Casa Marina, a resort I would highly recommend to anyone. So while I was limbo, it would seem as though the stock market was in limbo, as well.
For the 20-year period, gold as an asset class had the second best annualized returns at 7.7 percent, according to JPMorgan. The S&P 500, by comparison, returned only 5.6 percent on an annualized basis, with bonds coming in at 4.5 percent.
I think the rest of the world will enter a period something like Japan endured following 1990, and is still grappling with today. It won’t be the end of the world; Japan is still there, but the little growth it’s had was due mainly to exports. That won’t work when every major economy is in the same position.
Markets are caught between incoming data that point to slower global growth and forward-looking factors that suggest improvement later in the year. With the pause in U.S. Federal Reserve rate hikes, we expect modest recovery in global cycle conditions.
Despite its name, MMT is not modern. It is the latest iteration of the idea of monetizing the debt, relying on a central bank to create demand for a country’s bonds. The Bank of Japan routinely buys all Japanese government bonds on the open market, keeping borrowing costs near zero despite a massive government debt. Japan has not imploded under this debt burden, but it has stagnated. Government intervention reduced a crisis, but did not unlock growth.
Research group Metals Focus released its Gold Focus report this week forecasting that global gold demand will climb to its highest level in four years. Plus, economist David Rosenberg shares what he thinks ballooning nonfinancial corporate debt means for investors.
Recession is coming. We can debate the timing, but the economy will turn decisively downward at some point. My own analysis, looking at the data available on April 4, says recession isn’t likely this year but unfortunately looks very probable in 2020.
