Asset Allocation

This article explores how the addition of specific liquid alternative strategies produces an “All-Terrain” portfolio with the potential for improved long-term performance across a wider range of market environments.

Current federal monetary policy, fixed income returns and economic landscape appear to closely parallel the bond bear markets in the 1990s.

Throughout this year, Wealthspire Advisors’ Investment Team has spent significant time discussing inflation and the Federal Reserve and felt it was important to pivot towards the story in financial markets for 2022, which begins and ends with fixed income.

Market volatility and the Federal Reserve's efforts to reduce inflation will continue to garner attention.

At KCR, we believe in the Quantamental Investment approach–a strategy that leverages the most useful aspects of both quantitative investing and fundamental investing.

Deep value offers a compelling opportunity within U.S. equities.

Chief Economist Eugenio Alemán and Economist Giampiero Fuentes examine the factors which will contribute to the U.S. economy's path forward in 2023.

Public and private real estate investments present a compelling opportunity in the current environment of high inflation and rising interest rates, according to Daniel Scher and Blair Schmicker from Franklin Equity Group.

Over the long-term, the fundamentals of the dollar suggest a downward bias is likely.

Quarterly commentary giving an overview of the markets and the importance of having and implementing a strategy when investing in the markets.

George Milling-Stanley of State Street Global Advisors provides his outlook for gold in 2023, as well as the specific headwinds and tailwinds he expect to drive price activity moving forward.

Much ink has been spilled over the death of the 60/40 portfolio.

The Aiguille du Midi, neighboring popular Mont Blanc in the French Alps, is famous for having the highest vertical ascent cable car in the world, a vertigo-inducing ride that is equal parts scary and awe-inspiring.

Bear markets end with widespread capitulation while a chorus of the stock trader’s prayer (God, if you get me out of this mess, I swear I will never buy another stock) spreads through out the land.

Managing your portfolio has more to do with gardening than you might imagine.

As of Friday, December 16, the S&P 500 Index is down -19.7% from the most speculative level of valuations in U.S. history – exceeding even the 1929 and 2000 extremes, based on the valuation measures we find best-correlated with actual subsequent market returns in cycles across history.

Capital represents the resources and labor used to produce goods and services.

In his latest memo, Howard Marks writes that the investment world may be experiencing the third major sea change of the last 50 years. Events in recent years – especially the spike in inflation and the Federal Reserve’s response – appear to have caused a reversal of the market conditions that prevailed after the Global Financial Crisis and for much of the last four decades. Howard discusses what this potentially new era could mean for lenders, especially bargain hunters.

Yield is set to be a more important component of total return for investors during the next few years as the “Fed Put” exerts less influence on markets.

Emerging Markets (EM) assets were subject to three strong headwinds in 2022, namely, China’s zero Covid-19 and real estate crisis, aggressive interest rate tightening from the US Federal Reserve (Fed), and the Russia invasion of Ukraine.

The U.S. Superbubble, as Jeremy Grantham has termed it, featured the most dangerous mix of factors in modern times at the end of last year: all three major asset classes – housing, stocks, and bonds – were critically historically overvalued.

The Fed’s mandate is stable prices and maximum employment.

As the super-growth cycle is ending in dramatic fashion, we are already seeing some of the most attractive valuation opportunities in years.

Review the latest Weekly Headings by CIO Larry Adam.

Recently, Bank of America discussed the “5-Lessons From The Nifty Fifty.”

It's the end of the world!

After a challenging 2022, it is time for investors to look forward to opportunities. Emerging Markets (EM) debt stands out as one place where investors can potentially take advantage of an underutilized asset class that offers attractive yields and diversification.

“95 years ago, your crystal ball reveals: Russian debt default, LTCM fail, DotCom implosion, 9/11 attacks, financial crisis and great recession, pandemic killing millions, 3 market crashes. Would you put your money into stocks? No? You missed a 10X return.”

In his latest memo, Howard Marks weaves together some of the themes he’s explored in 2022 to explain what he believes really matters in investing and what doesn’t. He discusses the disadvantages of short-term thinking, the difference between volatility and risk, and the one word he believes defines the essence of investment excellence.

Stocks are overbought and overvalued relative to bonds.

There’s enormous scope for India and Greater China to increase GDP per capita relative to the U.S. and other developed nations

Drew O’Neil discusses fixed income market conditions and offers insight for bond investors.

We continue to believe that a value-conscious, risk-managed, full-cycle discipline, focused on the combination of valuations and market internals, will be essential in navigating market volatility in the years ahead.

Key Takeaways

• S&P 500 sector dispersion is at multi-year highs
• The Dow is strongly outperforming the S&P 500
• Active management outperforming YTD

David Dali, head of portfolio strategy, explains how emerging markets can give investors ballast to navigate macro headwinds and position portfolios for growth.

To properly guide their clients, financial advisors must have a good understanding of the long-run behavior of stock and bonds returns.

How we’re thinking about investing against a backdrop of inflation uncertainty, geopolitical tension, and likely recession.

Regardless of your long-term view on bonds, Treasuries are beginning to look undervalued from a cyclical perspective.

David Dali, head of portfolio strategy, explains how emerging markets can give investors ballast to navigate macro headwinds and position portfolios for growth.

Doug Drabik discusses fixed income market conditions and offers insight for bond investors.

We believe private credit is an attractive investment with greater market coverage and a timely opportunity to benefit from the scarcity of fresh capital.

Following the weaker-than-expected October inflation report, stocks surged on hopes the Fed will “pivot” sooner than later. As we discussed recently, a “policy pivot” is not necessarily bullish but instead suggests more bearish market action will come first.

With the year winding down, investors might think they’ve seen it all. But one element of market dysfunction that’s largely flown under the radar is increased friction within the US Treasury market. Treasuries are experiencing a liquidity decline on the back of economic uncertainty and higher volatility, with large blocks of government debt increasingly hard to trade.

This week, around my trip to a far-too-cold Denver, then to Dallas, and ultimately Tulsa to spend the Thanksgiving holiday with family, Keith and I did a 45-minute "interview" via Zoom. Less an interview, perhaps, than the two old friends catching up. I was surprised how many topics Keith and I aligned on perfectly, though our few disagreements about what comes next made for a great debate.

In one of the most challenging years for markets, 2022 brought persistently high inflation, aggressive central bank tightening and heightened geopolitical risks, leaving investors with few places to hide.