For this Frank Talk, I decided to take a deep dive in the airline industry to see how it fared in the first quarter of 2021, one year after the start of the pandemic.
Factor timing is the ability to add value to an investment strategy by altering the exposure to various factors through time.
It often happens that associations which end up leaving an indelible mark on our collective memory of certain market events are the result of sheer happenstance
Although it’s early in the first quarter earnings reporting season, it’s worth a look at the progress so far and the implications for the rest of the season, as well as valuations.
John Vail of Nikko Asset Management dives into the findings from Nikko’s latest Global Investment Committee meeting.
National corporate tax policies need global coordination; U.S. unemployment rates don't tell the full story.
Black swans are rarely as surprising as the concept suggests.
How do we preserve and grow our client's wealth at inflation-adjusted rates, consistent with long-term returns of the requisite asset class, and to do so without taking undue risk of a permanent loss of capital?
President Joe Biden’s strategy of bolstering labor unions as a way to enhance American workers’ pay is running up against a half century of setbacks for organizing workers.
The great stock-market rotation is revitalizing a $1.4 trillion corner of quantitative investing and handing ETF managers a rare opportunity to outperform the S&P 500.
The Northern Trust Economics team shares its outlook for global growth in this year of reopening.
Investors are reassessing which types of companies will thrive in the next stage of the recovery amid the recent rebound of value stocks.
The 2015 Paris Agreement introduced the legally binding goal of maintaining the average global temperature below the pre-industrial revolution average plus 2o Celsius in order to avoid severe stress on natural and socioeconomic systems.
Is there a way to change an advisor’s mind who is pushing back so they can understand my view and see that it isn’t a negative but rather a positive?
Millions of Americans, it seems, felt that the time was right to trade in their clunkers for a new set of wheels.
To compensate, retain and attract employees, many companies issue stock options.
We’re more than ready to put the pandemic in the rearview mirror. For the first time since this all started a year ago, more than one million people per day have been flying commercial in the U.S. for 30 straight days.
Yes, the housing market is a bit overheated, but for reasons that make far more sense than the rationalizations of stock market bulls. Some buyers are certainly overpaying and may regret it. Nonetheless, I don’t foresee another 2008-style housing crash in the near future, nor anything like the subprime crisis. There are altogether different fundamentals working here.
Well, let’s just say things are different in 2021.
We have all endured the Covid-19 pandemic for over a year now.
This is the first of a five-part series on my partner, Emery Kertesz. He died on January 29, 2021, at age 64.
A fast-growing stock – what clients believe is the next Google – is likely to be a disappointing investment. New research, which validates the theory of behavioral economics, shows that “representativeness” explains why clients overweight stocks with high asset growth.
Although tough trade-offs are sometimes unavoidable, there is a way for policymakers to maintain a robust global economic recovery in 2021 and beyond while simultaneously pulling up disadvantaged countries, groups, and regions. But it will require both national and international policy adaptations.
Some call the recent rotation from growth to value outperformance transitory. We believe it may have staying power, making value stocks a formidable complement to growth in a balanced equity portfolio.
Traditional Easter and Passover lamb-centered meals mark peak season for the often overlooked protein. But one year ago, the arrival of the pandemic sent the U.S. lamb industry into a tailspin.
I want to share a math formula I often discuss with advisors. This is for anyone considering transitioning their practice to the RIA model or is already working through those steps but is struggling to reach the finish line.
We forecast a strong global recovery in 2021 amid significant fiscal support, accommodative monetary policy, diminishing lockdowns, and accelerating vaccinations.
Standard neoclassical economics is a failure and is driving many of the crises facing our world.
Investing based on ESG concerns should lead to lower returns, since the prices of those stocks will be bid up beyond their intrinsic value. But new research shows that by combining ESG- and momentum-based principles, investors can achieve higher risk-adjusted returns.
Big economic storms are rare and usually end quickly, but they tend to have long-lasting effects. Today I want to talk about a storm 50 years ago that still affects us now. Important things happened in the 1970s.
Data has shown that investment strategies that address ESG issues constitute a third of professionally managed U.S. assets. That has led some to claim that asset prices have been driven up to the point where investors should expect poor performance going forward. That narrative is false.
I am often asked by investors why we do not have formal tactical views on growth vs. value like we do on large caps vs. small caps.
The American Rescue Plan (ARP) has some welcome relief for clients who are responsible for obtaining their own health insurance coverage. Clients could benefit from the enhanced health insurance subsidies, maximal assistance for those who claim unemployment, a new round of COBRA premium assistance, and forgiveness of 2020 premium tax credit overcalculations.
The COVID-19 pandemic has been devastating for individuals and economies around the world.
As expected, the Federal Open Market Committee left short-term interest rates unchanged and did not alter its monthly pace of asset purchases.
New research shows that hedge funds that proclaim to adhere to socially responsible investment principles fail to follow through on that commitment and they deliver inferior performance results. The same is true of institutional funds, although the evidence is weaker.
We’re going to have to do something about climate change. I will review the science and the possible solutions, and ask what role investors – including your clients – can and should have to foster a solution.
In a new piece from the GMO Event-Driven Team, Doug Francis and Sam Klar discuss the growing supply-demand imbalance in the asset class that has driven focus towards the SPAC boom and away from the opportunity in other investments like merger arbitrage.
A better appreciation of the history of market bubbles should help advisors and their clients sidestep some of the carnage when they inevitably burst. It is our intention in this article to take a more clinical approach by quantifying what we mean by a “bubble” solely in terms of market action. In that way, it is possible to compare conditions between individual markets and arrive at a rough standard. There are of course, many other aspects to bubbles and manias, several you can read about here.
When it comes to investments, economic growth, and entrepreneurship, women remain structurally excluded from high-level participation compared to men.
There are many ways to go wrong in choosing a TAMP. Here are two no one is talking about.
U.S. economic growth is accelerating as vaccinations rise and social-distancing measures ease, but hopes for a long-lasting spending boom may hit a couple of speed bumps. Vaccine rollouts in major countries are proceeding at different speeds, but stock market performance contradicts what vaccination data would seem to imply for investors. Meanwhile, inflation-adjusted longer-term Treasury yields have risen as investors anticipate stronger economic growth.
Don’t fear Treasury yields killing off the stock market’s golden goose just yet.
There is significant variation in how countries have handled the pandemic, managed fiscal and monetary policy, and supported their economies, according to Templeton Global Macro.
A discussion of the potential benefits of owning a basket of high-quality stocks with relative price stability given the current market and economic outlook. During this seminar, listeners will hear the case for multi-factor based investing strategies from one of the leading non-beta ETF providers, First Trust. Topics include what factors are commonly used, how these factors have performed over time, and the reasons many advisors have gravitated toward the First Trust Capital Strength ETF.
The left-for-dead value trade has roared back to life to wipe out all its pandemic losses, with its revival reshaping the $2 trillion world of factor investing.
“Bull markets are born on pessimism, grow on skepticism, mature on optimism and die on euphoria.” -Investor and mutual fund manager Sir John Templeton
Every year. Every day. I teach clients that they must choose one of two paths to complete their Medicare coverage.
New research shows that higher employee satisfaction leads to higher equity returns. That reinforces previous research showing that ESG principles should be an important aspect of advisors’ due diligence in fund selection.
There may be some incredible opportunities for investors in companies that produce the metals, minerals and other raw materials that will be needed with an increase in spending.
