A landmark study looked back at more than 100 years of data and 23 countries to determine if there are reasons to believe the cross-sectional patterns in factor returns will persist, or whether they were just anomalies that tended to disappear after publication.
Rieder and Brownback argue that as we depart the era of QE, where rising tides lifted all boats, the income component of total return becomes ever more vital to investor prospects.
The price of bitcoin surged above $8,000 on Tuesday for the first time since May after the Group of 20 (G20) meeting in Argentina concluded last weekend with little urgency to take regulatory action on cryptocurrencies. In a communiqué, finance ministers and central bank governors expressed confidence that the technology underlying alt-coins “can deliver significant benefits to the financial system and the broader economy.”
Last week I gave you some rules to follow with your investments. They were necessarily general because I’m writing to a broad audience. Today, I will get more specific by discussing some possible strategies for high-net-worth “accredited investors.”
We calculate statistics for all developed and emerging equity markets around the world. For our mid/large cap indexes, we take the top 85% of all stocks in a given region or country and convert all prices into US Dollars.
Despite plenty of news, there was little market reaction. In a summer week including many vacations, we have a modest economic calendar but plenty of earnings news.
C. Thomas Howard, PhD, is the CEO and chief investment officer at AthenaInvest, Inc., a Colorado-based investment manager. He is the co-manager of the Athena Global Tactical ETFs, a separately managed account. As of June 30, 2018, since its inception in September 2010, it has had an annualized return of 19.0%, outperforming its benchmark, the MSCI All Country World Index (ACWI) by 900 basis points. It is rated five-stars by Morningstar.
An active manager worth his or her salt will manage risk as part of the deal, and risk management is exactly what you need when you live on a railroad track. It doesn’t have to be perfect, just good enough to mitigate the major drawdowns. If everybody else loses 40% and you only lose 25%, you’ll be way ahead of the crowd. And the right manager should avoid even that scenario and keep you near break-even.
Anticipate before you participate in the market. This is a classic piece of advice I like to give investors and have written about extensively in my CEO blog, Frank Talk. Financial markets are influenced by relatively predictable cycles and trading patterns, and by better understanding these we are able to react thoughtfully to headline noise or unexpected market developments.
I cannot remember a market week with so many significant events. Important economic data and testimony by Fed Chairman Powell would be a big week. But we also have the Trump/Putin meeting, the start of an important earnings season, and the daily soap opera from Washington.