The industry group Airlines for America predicts that approximately 257 million people will travel on U.S. commercial airlines this summer, representing a 9.5% increase from last year. That would also set a new record, as volumes are projected to surpass the summer 2019 levels by around 2 million passengers.
“Crisis” is an overused word. Actual crises are those rare times when we are on the knife edge of disaster. It’s not a crisis when a bank fails, or Congress can’t agree on a budget. Those are annoyances (unless it's your bank). While not good, they don’t spell immediate catastrophe.
Structural changes in the world’s energy systems represent significant investment potential across an array of sectors. Analysts on our equity research team offer insights into the impact and opportunities.
The Federal Reserve’s higher interest rates, the work from home trend, ESG distractions, increases in crime, etc., are having far reaching effects on our economy and investors.
Following OPEC’s surprise production cut in April that saw crude oil squeeze from $65 to $80 per barrel in a manner of days, hedge funds and the like have once again resumed selling on slowing growth and recession fears.
Some of the most common questions clients ask advisors revolve around retirement:
New research from Dimensional addresses these questions. The study found that investors who tilt towards size, value, and profitability in their equity allocation are likely to enter retirement with significantly more assets, sustain their retirement spending longer, and to leave behind larger bequests than with a standard, broad-market-index portfolio. Given the popularity of broad market indexing, the findings have implications for advisors. Joining us to talk about the research is Mathieu Pellerin.
According to the company’s investor relations page on this REIT, Simon Property Trust (SPG) is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment, and mixed-use destinations and an S&P 100 company.
Last week the VettaFi Voices gathered to reflect on a year at VettaFi under the firm’s new name. The team celebrated wins, and time spent together, and shared their favorite insights and highlights from a busy twelve months.
If you’ve been to a high school or college commencement lately, then you know the drill: at some point at least one speaker will urge the graduates to be “agents of change,” suggesting they’d like to see these students make the world a better place through some sort of social activism.
We often talk about technology’s influence on the economy. After the Strategic Investment Conference, though, I’ve decided that isn’t strong enough. It’s more correct to say technology is the economy.
Although attendance was down this year compared to last—mostly because Bitcoin’s price is still off its record high of approximately $69,000, set in November 2021—there was nevertheless an impressive turnout of investors of all ages, industry leaders, policymakers and more.
The view by many is that sustainable investing is concessionary in that financial results are forgone in order to achieve sustainable outcomes. Our historical analysis shows that this assertion isn’t true and that unique ESG data can be predictors of company results.
One of my mentors once told me that "Hope is not a strategy" and since we can't predict the markets, I have decided to focus this blog on using Direct Indexing to attract new high net-worth clients.
Technological progress in the last two centuries, and especially in the recent past, has been nothing short of amazing. So why are we so unhappy? Why aren’t we all rich?
Stock selection in a climate investing strategy takes more than just avoiding companies exposed to global warming risks. The process should intersect with an active search for diverse opportunities among companies helping to fight climate change, but with high-quality business models, too.
As investor interest in ETFs that promote higher environmental, social, and governance standards fades, more issuers are shutting down these funds.
Watching Warren Buffett and Charlie Munger Saturday in Omaha caused us to think about a very popular 1960s TV show called, “The Dating Game.” Hosted by Jim Lange, the game was played with the host on one side of a wall with a male or female contestant.
The U.S. regional banking crisis is intensifying as rising interest rates put smaller banks at risk, leading to significant losses in the sector. Amid the turmoil, gold and gold mining stocks may offer investors a potentially safer alternative to manage risk.
In the early 2020s, the stock market looked much like basketball used to: a big man’s game. As examples, money management firms like Vanguard and Blackrock lumbered to higher heights of assets while the passive firms swallowed more market share.
In life, there are things that we should be convicted and committed to. For example, the love for our families, spouses, and religious beliefs. We can also be convicted about other things, such as political ideologies, social issues, and environmental causes.
Why Scope 3 emissions hide as much as they reveal, and what investors can do about it.
Direct indexing is an innovative investment strategy that can solve a variety of investor challenges. We discuss the five main benefits of incorporating direct indexing in a client’s portfolio.
The fiercest adversary of investing based on environmental, social and governance (ESG) is Aswath Damodaran. ESG is a failure, its advocates are to blame, and the concept should be retired, according to Damodaran.
How do you go from the theoretical to the practical? What AI tools can you use that will streamline and improve your processes?
Chinese economic data blew expectations out of the water this week, reflecting a strong comeback for the Asian giant as it finally emerges from the world’s most restrictive pandemic-era lockdown.
Big Tech earnings next week will offer investors a dose of reality following this year’s impressive gains in the sector that were powered by hype over artificial intelligence.
Consisting of 60% stocks/40% bonds, this classic investment portfolio has historically been a trusted way to generate returns and diversify investor portfolios. However, we believe the 60/40 allocation may now be working against investors.
To kick off the beginning of 2023, there continues to be a bias we see in equity investor portfolios. These portfolios have many of the traits investors see at the endpoints of the economy like software, consumer products and computer chips.
Spotting trend changes is the key to economic forecasting. They don’t happen often. Most of the time, this year will be similar to last year. The pace varies but the overall trend continues… until it doesn’t.
Despite recent headwinds, structural drivers underpinning China’s growth remain intact. Sectors that will benefit from the structural trends include healthcare, industrial automation, and domestic brands targeting increased spending by Chinese consumers.
Kyle Bass has some advice for real estate investors: Tear it down. The founder of Dallas-based Hayman Capital Management says office buildings in cities need to be demolished because demand isn’t returning and it’s impractical to turn most towers into apartments.
The Saudi-Russia oil alliance has the potential to cause all kinds of trouble for the US economy — and even for President Joe Biden’s re-election campaign. This month’s OPEC+ decision to cut crude output, for the second time since Biden flew to Saudi Arabia last summer seeking an increase, may be just the start.
Born of the Global Financial Crisis, additional tier-1 securities were designed to absorb bank losses in times of turbulence and maintain financial safety at no cost to taxpayers. Despite good intentions, we’ve found AT1s to be flawed instruments that are contingently junior to common equity in practice.
Sustainable investing continues to gain in popularity, with investors worldwide frequently attracted not only by ethical concerns but also by the lure of superior returns. Unfortunately, new research focused on global stocks showed that they did not get what they were sold.
Inflation regimes often coincide with changing political regimes and agendas, much of which stems from the rise of populism and fiscal dominance. As a result of decades of globalisation and rising wealth inequality, we may well be entering a new regime - one of higher inflation and higher inflation volatility.
Emerging Markets (EM) have faced a challenging environment over the past five years, due to a series of global shocks that have triggered elevated market volatility and led the MSCI EM equity benchmark to experience its most protracted drawdown in history.
For many of those – now a clear majority – who believe climate change is a serious long-term threat, the recently announced breakthrough that nuclear fusion has at last produced net energy is an extremely hopeful sign. First, however, they need to read this article.
When Microsoft Corp. launched its $1 billion Climate Innovation Fund three years ago, it was the lone tech giant pledging serious money to tackle rising temperatures. The dangers facing the planet have since become more acute, and the fund has about $400 million left.
The investment landscape is pockmarked by intractable statistics that continue to impose strategic and psychological barriers to the short term potential of portfolio alpha.
What are the implications of the ongoing volatility in the banking sector, and what does it mean for markets in Europe and globally?
Should investors build their own portfolios of bonds, or buy shares of bond funds? Is there an economic difference or just one of appearance? Are directly held bonds safer because they mature, and you get your money back? How should one decide?
The importance of Biden’s veto to save the DOL rule was not about assessing ESG factors. It was about affirming the role of the fiduciary in investment advice.
You provide a lot of value to your clients. Save them from making even a single catastrophic financial mistake and your fees will forever be a moot point.
Robust risk management is essential for fixed income investors. In his latest commentary, Marcus Moore explains why our sustainable investing team considers ESG factors as material business risks, similar to the traditional risks they also analyze.
The strongest force standing in the way of nuclear energy is the antiquated, irrational fear of it.
Fears of bank runs precipitating a broader financial crisis helped spark a surge in bullion buying this week.
Investors focusing on climate change often overlook Chinese firms.
If you read and pay attention to the world, you probably know the recent past pretty well. And if you’re a history buff like me, you also know something about the more distant past.
Lufthansa’s blockbuster report is just the latest signal that commercial aviation, one of the hardest-hit industries during the pandemic, may be ready to make a landing again in investors’ portfolios.
The US Supreme Court’s conservative majority cast doubt on President Joe Biden’s plan to slash the student debt of more than 40 million people, imperiling one of his signature initiatives in a high-stakes showdown over presidential power.
In recent years we have witnessed a surge in sovereign bond defaults in emerging markets.
As a young stockbroker in the 1980s, I was very enamored with T. Boone Pickens.
The asset management industry is overlooking what promises to be a major new ESG risk: biodiversity.
Here are the top three trends that will affect ETFs in 2023.
Low-volatility strategies are often cited as an anomaly offering higher returns without a corresponding increase in risk. But the so-called low-volatility factor is well explained by other factors, and new research shows it does not reduce exposure to “systemic,” broad-economic risks.
President Joe Biden faces a formidable obstacle in his bid to slash the student debt of more than 40 million people: a US Supreme Court that has repeatedly thwarted his agenda.
The asset management unit of JPMorgan Chase & Co. has wiped its ESG portfolios clean of their exposure to the Adani empire.
Close to 90% of the world’s central banks are at some point in the process of creating their own digital currency. Are you ready?
Our perspective on how bondholders can hold power over corporates.
Some of the world’s largest economies ramped up calls to increase support to troubled emerging countries ahead of a Group of 20 finance chiefs meeting.
When it comes to the clients they serve, advisors need to think about the now and the new, not the next, and step up their offerings in key areas.
US homes in areas prone to floods may be currently overvalued in the range of $121 billion to $237 billion, according to a report published Thursday in the journal Nature Climate Change.
Many investors have attempted to capitalize on the inverted yield curve by purchasing long-term Treasuries (assuming continued declines at the long end will cause their bonds to appreciate). In his latest commentary, Venk Reddy, CIO of our Sustainable Credit Strategies, explains why he feels this approach is materially riskier than investing in short duration fixed income.
The auto industry is navigating through shifting conditions in trade, policy, and preferences.
Morgan Stanley has picked an interesting moment to press ahead with expanding its offering of ESG-themed funds.
While equity markets are on a relentless march higher amid optimism around stronger economic growth and cooling inflation, most investors aren’t convinced the gains will last, according to Bank of America Corp.’s latest global fund manager survey.
The riskiest bond trade in emerging markets is mounting a comeback, offering double-digit returns to those brave enough to flirt with default.
The dark side of ESG investing has the potential to undermine a whole generation of clean-tech strategies.
For the nearly 2,000 attendees of the ETF Exchange conference, a lot has changed in a year.
“Geopolitical recession” doesn’t exist as a defined term. But it should, according to Ian Bremmer. If relations among global powers were framed in economic terms, we would be in the “bust” phase of the business cycle, he said.
Cash flows into US sustainable funds plummeted last year as the broader market took a beating and anti-ESG crusaders targeted money managers including BlackRock Inc. for “woke capitalism.”
ESG proponents sell the idea to investors that they can achieve both altruism and high returns. In the end, they fail at both.
Three decades after helping give birth to the ETF industry, Morgan Stanley is officially back in the game in what could be a milestone moment for the investing world.
In stock investing there’s a management style called “growth at a reasonable price” or GARP. It seeks to achieve steadier results by avoiding both expensive growth stocks and beaten-down value stocks.
The current debt ceiling debate in Congress is a great reminder that investors should always prepare for the unexpected and invest in companies that are durable enough to withstand a range of economic scenarios.
Six Wall Street banks are being pressed by a group of shareholders to move faster on reducing their financing of fossil fuels to meet global climate goals.
We turn fantastic conversations with clients into risk profiles, performance reports, and various financial documents that have little meaning to them and their values.
When should your firm begin to leverage a new offering, if at all? Let’s talk about ESG investing and share three strategies to help your firm discuss and market a new product or service in an authentic, practical, and distinctive way.
Ray Dalio, founder of the world’s largest hedge fund, has one.
We believe it is important to keep you informed on the latest proposals and regulations impacting the retirement industry, as well as implications to your business.
Vanguard Group, which quit the world’s biggest climate-finance alliance in December, was the only major ETF provider to post an increase in European assets last year thanks to its lower exposure to environmental, social and governance strategies, according to Morningstar Inc.
So-called greenwashing by asset managers misleads investors by labeling products with false claims of ESG benefits. But the SEC’s initiative to restrain this malpractice falls short because it does not distinguish between risk- and ethics-driven ESG products.
Big global banks are eying some of the world’s most fragile countries for a new experiment in financial engineering: debt relief in exchange for environmental protections.
Our 2022 ESG manager survey findings reinforced our belief that the integration of environmental, social and governance (ESG) factors into investment processes is here to stay.
The California Public Employees’ Retirement System is making a $1 billion wager that small private equity firms without the heft of the biggest buyout institutions can boost the pension giant’s returns and clout.
Healthcare stocks have remained in vogue through volatile markets, driven by increased interest in the sector during COVID-19.
Although inflation appears to have peaked, historical data suggests that prices are unlikely to reverse themselves, which could lead to an extended period of wage inflation.
When the Deepwater Horizon rig exploded in the Gulf of Mexico in 2010, triggering the largest-ever oil spill in the US, all eyes turned to BP Plc, the British company behind the drilling. But BP wasn’t alone in the project.
European bond-market performance was among the worst on record in 2022, as Europe ran the gamut of geopolitical, economic and market storms.
ESG
Airlines Are Bracing For Record Summer Travel. A Golden Opportunity For Investors?
The industry group Airlines for America predicts that approximately 257 million people will travel on U.S. commercial airlines this summer, representing a 9.5% increase from last year. That would also set a new record, as volumes are projected to surpass the summer 2019 levels by around 2 million passengers.
A Much-Needed Crisis
“Crisis” is an overused word. Actual crises are those rare times when we are on the knife edge of disaster. It’s not a crisis when a bank fails, or Congress can’t agree on a budget. Those are annoyances (unless it's your bank). While not good, they don’t spell immediate catastrophe.
Energy Transition Generates Potential Investment Opportunities
Structural changes in the world’s energy systems represent significant investment potential across an array of sectors. Analysts on our equity research team offer insights into the impact and opportunities.
The Far-Reaching Effects of Commercial Real Estate’s Downward Spiral
The Federal Reserve’s higher interest rates, the work from home trend, ESG distractions, increases in crime, etc., are having far reaching effects on our economy and investors.
Is This The Turning Point For Energy Markets?
Following OPEC’s surprise production cut in April that saw crude oil squeeze from $65 to $80 per barrel in a manner of days, hedge funds and the like have once again resumed selling on slowing growth and recession fears.
Size, Value and Factor Exposures Improve Retirement Outcomes
Some of the most common questions clients ask advisors revolve around retirement:
New research from Dimensional addresses these questions. The study found that investors who tilt towards size, value, and profitability in their equity allocation are likely to enter retirement with significantly more assets, sustain their retirement spending longer, and to leave behind larger bequests than with a standard, broad-market-index portfolio. Given the popularity of broad market indexing, the findings have implications for advisors. Joining us to talk about the research is Mathieu Pellerin.
This A Rated REIT Just Increased Their Dividend Offering a 7% Current Yield
According to the company’s investor relations page on this REIT, Simon Property Trust (SPG) is a real estate investment trust engaged in the ownership of premier shopping, dining, entertainment, and mixed-use destinations and an S&P 100 company.
VettaFi Voices On: One Year as VettaFi
Last week the VettaFi Voices gathered to reflect on a year at VettaFi under the firm’s new name. The team celebrated wins, and time spent together, and shared their favorite insights and highlights from a busy twelve months.
Agents of Change?
If you’ve been to a high school or college commencement lately, then you know the drill: at some point at least one speaker will urge the graduates to be “agents of change,” suggesting they’d like to see these students make the world a better place through some sort of social activism.
Technology Turning
We often talk about technology’s influence on the economy. After the Strategic Investment Conference, though, I’ve decided that isn’t strong enough. It’s more correct to say technology is the economy.
Bitcoin’s Rise To Prominence On Full Display At This Year’s Miami Conference
Although attendance was down this year compared to last—mostly because Bitcoin’s price is still off its record high of approximately $69,000, set in November 2021—there was nevertheless an impressive turnout of investors of all ages, industry leaders, policymakers and more.
ESG X Big Data: Solving for the Double Bottom Line
The view by many is that sustainable investing is concessionary in that financial results are forgone in order to achieve sustainable outcomes. Our historical analysis shows that this assertion isn’t true and that unique ESG data can be predictors of company results.
How to Attract High Net-Worth Investors With Direct Indexing
One of my mentors once told me that "Hope is not a strategy" and since we can't predict the markets, I have decided to focus this blog on using Direct Indexing to attract new high net-worth clients.
The Folly of Trying to Control Technology
Technological progress in the last two centuries, and especially in the recent past, has been nothing short of amazing. So why are we so unhappy? Why aren’t we all rich?
Homing in on Quality in Climate Investing Strategies
Stock selection in a climate investing strategy takes more than just avoiding companies exposed to global warming risks. The process should intersect with an active search for diverse opportunities among companies helping to fight climate change, but with high-quality business models, too.
ETF Issuers Are Losing Tolerance for ESG as Closures Surge
As investor interest in ETFs that promote higher environmental, social, and governance standards fades, more issuers are shutting down these funds.
No Dating Game for Buffett
Watching Warren Buffett and Charlie Munger Saturday in Omaha caused us to think about a very popular 1960s TV show called, “The Dating Game.” Hosted by Jim Lange, the game was played with the host on one side of a wall with a male or female contestant.
Unraveling The Regional Banking Crisis Amid Skyrocketing Interest Rates
The U.S. regional banking crisis is intensifying as rising interest rates put smaller banks at risk, leading to significant losses in the sector. Amid the turmoil, gold and gold mining stocks may offer investors a potentially safer alternative to manage risk.
The Game Has Changed
In the early 2020s, the stock market looked much like basketball used to: a big man’s game. As examples, money management firms like Vanguard and Blackrock lumbered to higher heights of assets while the passive firms swallowed more market share.
Conviction (Or How To Lose A Lot Of Money In Investing)
In life, there are things that we should be convicted and committed to. For example, the love for our families, spouses, and religious beliefs. We can also be convicted about other things, such as political ideologies, social issues, and environmental causes.
Scope 3: Everything, Everywhere, All At Once
Why Scope 3 emissions hide as much as they reveal, and what investors can do about it.
Top 5 Benefits of Direct Indexing: Our View
Direct indexing is an innovative investment strategy that can solve a variety of investor challenges. We discuss the five main benefits of incorporating direct indexing in a client’s portfolio.
Aswath Damodaran: It’s Time to Retire the ESG Concept
The fiercest adversary of investing based on environmental, social and governance (ESG) is Aswath Damodaran. ESG is a failure, its advocates are to blame, and the concept should be retired, according to Damodaran.
Ten AI Tools for Advisors
How do you go from the theoretical to the practical? What AI tools can you use that will streamline and improve your processes?
China’s Economic Recovery: 3 Key Sectors To Watch
Chinese economic data blew expectations out of the water this week, reflecting a strong comeback for the Asian giant as it finally emerges from the world’s most restrictive pandemic-era lockdown.
Big Tech Earnings to Offer Reality Check Over AI Hype
Big Tech earnings next week will offer investors a dose of reality following this year’s impressive gains in the sector that were powered by hype over artificial intelligence.
Move Over 60/40
Consisting of 60% stocks/40% bonds, this classic investment portfolio has historically been a trusted way to generate returns and diversify investor portfolios. However, we believe the 60/40 allocation may now be working against investors.
Buying Unwanted Assets
To kick off the beginning of 2023, there continues to be a bias we see in equity investor portfolios. These portfolios have many of the traits investors see at the endpoints of the economy like software, consumer products and computer chips.
Inflationary Choices
Spotting trend changes is the key to economic forecasting. They don’t happen often. Most of the time, this year will be similar to last year. The pace varies but the overall trend continues… until it doesn’t.
Taking a Long-Term View on China Equities
Despite recent headwinds, structural drivers underpinning China’s growth remain intact. Sectors that will benefit from the structural trends include healthcare, industrial automation, and domestic brands targeting increased spending by Chinese consumers.
Offices Across America Must Be Torn Down, Says Investor Who Won Big in 2008
Kyle Bass has some advice for real estate investors: Tear it down. The founder of Dallas-based Hayman Capital Management says office buildings in cities need to be demolished because demand isn’t returning and it’s impractical to turn most towers into apartments.
US-Saudi Oil Pact Breaking Down as Russia Grabs Upper Hand
The Saudi-Russia oil alliance has the potential to cause all kinds of trouble for the US economy — and even for President Joe Biden’s re-election campaign. This month’s OPEC+ decision to cut crude output, for the second time since Biden flew to Saudi Arabia last summer seeking an increase, may be just the start.
AT1 Bonds
Born of the Global Financial Crisis, additional tier-1 securities were designed to absorb bank losses in times of turbulence and maintain financial safety at no cost to taxpayers. Despite good intentions, we’ve found AT1s to be flawed instruments that are contingently junior to common equity in practice.
Top 5 Reasons to Use Direct Indexing
The Global Underperformance Facing ESG Investors
Sustainable investing continues to gain in popularity, with investors worldwide frequently attracted not only by ethical concerns but also by the lure of superior returns. Unfortunately, new research focused on global stocks showed that they did not get what they were sold.
The Case For Secular Inflation
Inflation regimes often coincide with changing political regimes and agendas, much of which stems from the rise of populism and fiscal dominance. As a result of decades of globalisation and rising wealth inequality, we may well be entering a new regime - one of higher inflation and higher inflation volatility.
Five Reasons to Buy Emerging Markets Equities
Emerging Markets (EM) have faced a challenging environment over the past five years, due to a series of global shocks that have triggered elevated market volatility and led the MSCI EM equity benchmark to experience its most protracted drawdown in history.
The False Hope Behind Nuclear Fusion
For many of those – now a clear majority – who believe climate change is a serious long-term threat, the recently announced breakthrough that nuclear fusion has at last produced net energy is an extremely hopeful sign. First, however, they need to read this article.
Microsoft Pushes to Squeeze All it Can From the Last of its Climate Fund
When Microsoft Corp. launched its $1 billion Climate Innovation Fund three years ago, it was the lone tech giant pledging serious money to tackle rising temperatures. The dangers facing the planet have since become more acute, and the fund has about $400 million left.
T minus 10, 9, 8….
The investment landscape is pockmarked by intractable statistics that continue to impose strategic and psychological barriers to the short term potential of portfolio alpha.
Market Volatility and Developments in the Banking Sector
What are the implications of the ongoing volatility in the banking sector, and what does it mean for markets in Europe and globally?
The Dilemma That Isn’t: Bonds versus Bond Funds
Should investors build their own portfolios of bonds, or buy shares of bond funds? Is there an economic difference or just one of appearance? Are directly held bonds safer because they mature, and you get your money back? How should one decide?
The Fiduciary is the "Decider"
The importance of Biden’s veto to save the DOL rule was not about assessing ESG factors. It was about affirming the role of the fiduciary in investment advice.
Ask Brad: The Toxic Lesson from Dry Cleaners
You provide a lot of value to your clients. Save them from making even a single catastrophic financial mistake and your fees will forever be a moot point.
Sustainable Investing: Opportunistically Managing Risk
Robust risk management is essential for fixed income investors. In his latest commentary, Marcus Moore explains why our sustainable investing team considers ESG factors as material business risks, similar to the traditional risks they also analyze.
Lies, Damn Lies, and Visions of Nuclear Catastrophe
The strongest force standing in the way of nuclear energy is the antiquated, irrational fear of it.
Could Bank Runs Lead to a Run on Gold & Silver?
Fears of bank runs precipitating a broader financial crisis helped spark a surge in bullion buying this week.
China’s Green Enablers Deserve a Place in Equity Funds
Investors focusing on climate change often overlook Chinese firms.
How It Started/How It's Going
If you read and pay attention to the world, you probably know the recent past pretty well. And if you’re a history buff like me, you also know something about the more distant past.
Airline Stocks Are Soaring Over The Negative Headlines, Lifted By Positive Earnings
Lufthansa’s blockbuster report is just the latest signal that commercial aviation, one of the hardest-hit industries during the pandemic, may be ready to make a landing again in investors’ portfolios.
Supreme Court Signals It's Skeptical Biden's Student-Loan Plan Is Legal
The US Supreme Court’s conservative majority cast doubt on President Joe Biden’s plan to slash the student debt of more than 40 million people, imperiling one of his signature initiatives in a high-stakes showdown over presidential power.
The Many Faces of Sovereign Default
In recent years we have witnessed a surge in sovereign bond defaults in emerging markets.
Drilling for Oil on the NYSE
As a young stockbroker in the 1980s, I was very enamored with T. Boone Pickens.
Asset Managers Found to Have ‘Blind Spot’ Around New ESG Risk
The asset management industry is overlooking what promises to be a major new ESG risk: biodiversity.
The Top Three ETF Trends for 2023
Here are the top three trends that will affect ETFs in 2023.
Beware of Low-Volatility Portfolios
Low-volatility strategies are often cited as an anomaly offering higher returns without a corresponding increase in risk. But the so-called low-volatility factor is well explained by other factors, and new research shows it does not reduce exposure to “systemic,” broad-economic risks.
Wiping out $400 Billion in Student Debt Rests in Supreme Court's Hands
President Joe Biden faces a formidable obstacle in his bid to slash the student debt of more than 40 million people: a US Supreme Court that has repeatedly thwarted his agenda.
JPMorgan Investment Arm Purges Its ESG Funds of Adani Stocks
The asset management unit of JPMorgan Chase & Co. has wiped its ESG portfolios clean of their exposure to the Adani empire.
Your CBDC Survival Guide
Close to 90% of the world’s central banks are at some point in the process of creating their own digital currency. Are you ready?
Can bond investors influence issuers' behavior?
Our perspective on how bondholders can hold power over corporates.
Calls Grow for Global Finance Architecture Reform Amid Debt Woes
Some of the world’s largest economies ramped up calls to increase support to troubled emerging countries ahead of a Group of 20 finance chiefs meeting.
Prepare to Meet the New Generation of Clients
When it comes to the clients they serve, advisors need to think about the now and the new, not the next, and step up their offerings in key areas.
US Housing Market Is Overvalued by Billions Due to Ignored Flood Risk
US homes in areas prone to floods may be currently overvalued in the range of $121 billion to $237 billion, according to a report published Thursday in the journal Nature Climate Change.
Unexpected Risks and Opportunities from the Inverted Yield Curve
Many investors have attempted to capitalize on the inverted yield curve by purchasing long-term Treasuries (assuming continued declines at the long end will cause their bonds to appreciate). In his latest commentary, Venk Reddy, CIO of our Sustainable Credit Strategies, explains why he feels this approach is materially riskier than investing in short duration fixed income.
Driving Change
The auto industry is navigating through shifting conditions in trade, policy, and preferences.
Morgan Stanley Doubles Down on ESG Despite the Politics
Morgan Stanley has picked an interesting moment to press ahead with expanding its offering of ESG-themed funds.
BofA Survey Shows Investors Expect Stock Rally to Fizzle Out
While equity markets are on a relentless march higher amid optimism around stronger economic growth and cooling inflation, most investors aren’t convinced the gains will last, according to Bank of America Corp.’s latest global fund manager survey.
World's Riskiest EM Bonds in Play as Distressed Makes a Comeback
The riskiest bond trade in emerging markets is mounting a comeback, offering double-digit returns to those brave enough to flirt with default.
Commodities Risk Lurking in ESG Funds Is Now Too Big to Ignore
The dark side of ESG investing has the potential to undermine a whole generation of clean-tech strategies.
Crypto Gives Way to Vanguard as ETFs Get 'Back to Basics'
For the nearly 2,000 attendees of the ETF Exchange conference, a lot has changed in a year.
Ian Bremmer: We are in a Geopolitical Recession
“Geopolitical recession” doesn’t exist as a defined term. But it should, according to Ian Bremmer. If relations among global powers were framed in economic terms, we would be in the “bust” phase of the business cycle, he said.
BlackRock US ESG Flows Fall on Tech Rout, Anti-Green Backlash
Cash flows into US sustainable funds plummeted last year as the broader market took a beating and anti-ESG crusaders targeted money managers including BlackRock Inc. for “woke capitalism.”
The Real Issue with ESG Investing
ESG proponents sell the idea to investors that they can achieve both altruism and high returns. In the end, they fail at both.
Morgan Stanley Makes Historic ETF Comeback With Six New Funds
Three decades after helping give birth to the ETF industry, Morgan Stanley is officially back in the game in what could be a milestone moment for the investing world.
Growth Pains
In stock investing there’s a management style called “growth at a reasonable price” or GARP. It seeks to achieve steadier results by avoiding both expensive growth stocks and beaten-down value stocks.
Elephant in the Room
The current debt ceiling debate in Congress is a great reminder that investors should always prepare for the unexpected and invest in companies that are durable enough to withstand a range of economic scenarios.
Big Banks Told to Phase Out Financing of New Fossil-Fuel Projects
Six Wall Street banks are being pressed by a group of shareholders to move faster on reducing their financing of fossil fuels to meet global climate goals.
Client Values Matter More than Your Tech Stack
We turn fantastic conversations with clients into risk profiles, performance reports, and various financial documents that have little meaning to them and their values.
Three Strategies to Expand Your ESG Offerings
When should your firm begin to leverage a new offering, if at all? Let’s talk about ESG investing and share three strategies to help your firm discuss and market a new product or service in an authentic, practical, and distinctive way.
A Powerful New Tool Transforms How Billionaires Give Fortunes Away
Ray Dalio, founder of the world’s largest hedge fund, has one.
US Retirement Legislation and Regulation Bulletin: Fourth Quarter 2022
We believe it is important to keep you informed on the latest proposals and regulations impacting the retirement industry, as well as implications to your business.
Vanguard Gets Extra ETF Billions After Largely Shunning ESG
Vanguard Group, which quit the world’s biggest climate-finance alliance in December, was the only major ETF provider to post an increase in European assets last year thanks to its lower exposure to environmental, social and governance strategies, according to Morningstar Inc.
The SEC’s Misguided Fight Against Greenwashing
So-called greenwashing by asset managers misleads investors by labeling products with false claims of ESG benefits. But the SEC’s initiative to restrain this malpractice falls short because it does not distinguish between risk- and ethics-driven ESG products.
Wall Street's New ESG Money-Maker Promises Nature Conservation - With a Catch
Big global banks are eying some of the world’s most fragile countries for a new experiment in financial engineering: debt relief in exchange for environmental protections.
2022 ESG Survey Deep Dive: Active Ownership Review
Our 2022 ESG manager survey findings reinforced our belief that the integration of environmental, social and governance (ESG) factors into investment processes is here to stay.
Calpers Makes $1 Billion Bet on Small Funds as New CIO Reshapes Pension
The California Public Employees’ Retirement System is making a $1 billion wager that small private equity firms without the heft of the biggest buyout institutions can boost the pension giant’s returns and clout.
Healthcare Stocks: An Innovative Antidote for Volatile Times
Healthcare stocks have remained in vogue through volatile markets, driven by increased interest in the sector during COVID-19.
Things Are Getting Sticky. Prices Always Have Been.
Although inflation appears to have peaked, historical data suggests that prices are unlikely to reverse themselves, which could lead to an extended period of wage inflation.
The Warren Buffett Way to Profit From the Energy Crisis
When the Deepwater Horizon rig exploded in the Gulf of Mexico in 2010, triggering the largest-ever oil spill in the US, all eyes turned to BP Plc, the British company behind the drilling. But BP wasn’t alone in the project.
European Fixed-Income Outlook: Stay High Quality in 2023
European bond-market performance was among the worst on record in 2022, as Europe ran the gamut of geopolitical, economic and market storms.