The recent sharp pullback in volatility as year-end approaches creates hedging opportunities given the cloudy outlook for equities, according to Goldman Sachs Group Inc. strategists.
As banks pull back from many types of lending, demand for capital is outpacing supply, providing the best potential opportunities in private credit since the GFC.
Private equity firms that spent hundreds of billions of dollars on acquisitions at the top of the market risk a nasty hangover.
Exchange has assembled an impressive lineup of keynote speakers. The conference is just around the corner, with the financial services community gathering February 11-14 in Miami Beach. Here’s what to expect from the keynote speakers.
FINRA has released new data for margin debt, now available through October. The latest debt level fell for a third straight month to $635.28 billion. Margin debt is down 6.7% month-over-month (MoM) and down 2.2% year-over-year (YoY). However, after adjusting for inflation, debt level is down 6.7% MoM and down 5.3% YoY.
Every time interest rates go up there is a flurry of demand for a product that has been around at least since the Roman Empire — annuities. The insurance industry has already seen rapid growth in annuity sales since 2021 and if rates remain at or move above current levels, demand seems poised to explode.
Two former Goldman Sachs Group Inc. bankers want to take the $1.6 trillion private credit revolution from Wall Street to Main Street.
CIO designate Sean Taylor gives his take on what Asia has to offer global and emerging markets investors, from growth, to diversification, to innovation.
Fixed income ETF demand has been strong in 2023 led by Treasury ETFs. However, advisors have been rewarded by turning to alternatives in the fixed income space, such as those focused on the collateralized loan obligations (CLOs) market.
Former Bridgewater Associates LP executive Bob Elliott’s plan for exchange-traded funds that employ hedge fund strategies has sharpened the debate about whether retail investors should have access to such approaches.
Year to date, the Russell 2000’s scant 1% gain is dwarfed by the S&P 500’s 18% gain. But that could be changing. After dominating much of 2023, large-caps could potentially step aside for small-caps to take the majority of gains.
The steepening yield curve has grabbed my attention. Historically, it's been a reliable investment signal. However, as I discuss in my article below, today's might not be occurring for the same reasons as in the past. It's not that it's different this time. It just might not be the same (so far).
In this issue of Fixed-Income Sector Views, our Sector Teams identify positive technical trends that have helped to support spreads, but remain vigilant for signs of credit deterioration as the slowing economy and the bite of higher rates start to be felt by issuers.
For the better part of two years, investors have been primed with hope of a “Fed pivot” that will presumably restore easy monetary policy and supportive conditions for the financial markets.
Picking the “right” stock is akin to betting on a game; not only must one pick the right team (beta), but also by how much (alpha).
The powerful rally in small-cap stocks looks like yet another false start rather than a lasting recovery.
Using LOGICLY data, we look at two of Direxion’s leveraged gold miners ETFs and their key features.
Individuals are increasingly looking for more tailored investment solutions, so it makes sense for plan fiduciaries to consider a more personalized approach, according to John Kutz, National Retirement Plan Strategist. He says personalization may be the ticket to better retirement outcomes.
Investing in the stock market typically brings to mind the strategy of buying low and selling high. However, there’s another, somewhat counterintuitive method some investors employ: short selling.
Portfolios with large allocations to alternatives can have many benefits. However, alternative allocations can deviate meaningfully from policy, particularly during periods of equity-market turbulence.
A burst of activity in Bitcoin derivatives has evoked memories of the period in late 2021 when the token surged to an all-time high.
A new psychological contract is transforming the modern workplace, highlighted by an increase in collective actions and changing employee expectations.
The Treasury Department’s top domestic finance official said the US government debt market has functioned well during a year of outsized interest-rate volatility, a regional banking crisis and the recent hack of the world’s largest bank.
A charismatic entrepreneur pulls in wealthy investors to amass a portfolio of some of the finest prime real estate. Banks and bondholders are persuaded to provide the leverage. What could possibly go wrong?
Confounding market and economic signals persist as the year’s end draws near. In a year punctuated by heightened uncertainty as investors attempted to navigate a confluence of risk factors, stock and bond correlations proved a significant challenge to traditional portfolios.
Year-to-date, technology has outperformed the broader market largely given the prevalence of low leverage, high profitability and consistent earnings across many names in the mega-cap tech space.
The market for US Treasury securities is arguably the world’s most important: a haven for investors in turbulent times, and a benchmark for virtually all other assets.
In our 2024 outlook, bonds emerge as a standout asset class, offering strong prospects, resilience, diversification, and attractive valuations compared with equities.
It’s true – first impressions are everything, and when it comes to your website, they happen in a flash.
Like some advances earlier this year, the market's current surge hasn't been defined by strong breadth underneath the surface—which will be key for a sustained, durable advance.
We speak with ClearBridge Investments’ Jeff Schulze about a topic on many investors’ minds: the 10-year US Treasury yield and the path of monetary policy. He also shares his views on the latest US retail sales data and whether consumer resilience will last into 2024.
This article provides a brief guide to the AI technologies available (it’s not just ChatGPT), their applications in wealth management, and how your firm can define specific business outcomes to achieve.
A China ‘Recovery’: How important is the loss of confidence within China itself?
Travel on all roads and streets increased in September. The 12-month moving average was up 0.1% month-over-month and was up 1.4% year-over-year. If we factor in population growth, the 12-month MA of the civilian population-adjusted data (age 16-and-over) was unchanged MoM and up 0.2% YoY.
Private equity (PE) has become a staple of institutional portfolios, but its performance has often been disappointing. New research shows that the levels of specialization and portfolio diversification should be important considerations when selecting a manager to implement a PE strategy.
Is the bond bear market finally over? That is the question everyone is asking now that bond prices rallied sharply following the November FOMC policy meeting.
Worries about an economic downturn aren’t enough to dissuade market participants from being bullish on risky debt as their top contrarian trade, according to the latest Bloomberg Markets Live Pulse survey.
Rising interest rates and inflation have kept emerging markets (EM) bulls from charging. But an improving macroeconomic environment could potentially be underway after the Federal Reserve’s recent rate pause.
Geopolitical factors and higher-for-longer interest rates have taken the steam out of 2023’s equities rally the past few months. But the recent rate pause could clear the path for gains in the S&P 500 for the remainder of the year.
The 2- through 30-year Treasuries rallied hard to drop yields from 12 to 18 basis points. By example, the 10-year Treasury price bottomed out at $91.86 (4.93%) and peaked at $95.25 (4.48%). This is a 3.4-point price swing or 45 basis point drop in yield.
Interest rates have been rising and yields have followed the same path. So traders bullish on bonds have essentially been seeing a repeat of 2022’s weakness. However, the recent pause in rate hikes by the Federal Reserve could bring more bulls back.
Policy changes at the Bank of Japan could potentially reverse capital flows, shift global yields higher, contribute to a stronger yen, and increase the value of Japanese stocks.
Sergio Ermotti promised ruthlessness in reshaping Credit Suisse Group AG, and the chief executive officer of UBS Group AG has been true to his word.
With the race to year-end now upon us, I share my thoughts on why, despite the recent reset and higher rates, I still see several reasons for market optimism for the remainder of the year.
Given the response from China’s highest leadership levels, a fast recovery is preferable. The second largest economy will have to do this without a heavy influx of financial aid from the government. It would have to rely on measured steps in policy adjustments.
Sam Bankman-Fried’s widely anticipated guilty verdict has been rendered. But Michael Lewis’ book raises many questions, including the existence and extent of an actual crime.
Tesla’s stock has fallen 20% the past month as bears continue to apply pressure following the electric automaker’s Q3 earnings report. A Tesla turnaround or more selling will provide enough volatility for traders unsure of which side to take, which is where leveraged exchange-traded funds (ETFs) can help.
Higher macro and market volatility, along with greater dispersion, creates a favorable environment for active trading, according to K2 Advisors. Get the team’s latest hedge-fund strategy outlook.
It has been several weeks since ether futures ETFs have launched with little fanfare in early October. But since then, the crypto ETF market has seen several significant events which has caused the price of bitcoin to rise to near $35,000.
The latest employment report showed 150,000 jobs were added in October, less than the expected addition of 180,000 new jobs. Meanwhile, the unemployment rate increased to 3.9%.
In smart beta, we find that factor returns—net of changes in valuation levels—are much lower than recent performance suggests. In fact, many of the most popular new factors (some 458 at last count) have succeeded solely because they have become more expensive.
It’s been a great year for alternative income strategies as inflation, interest rate, and recession risk fears dominated markets. Garrett Paolella of NEOS and Christian Magoon of Amplify ETFs joined VettaFi’s Tom Lydon to discuss alternative income opportunities at the Income Strategy Symposium hosted by VettaFi on October 27.
Franklin Equity Group portfolio managers Daniel Scher and Blair Schmicker make the case that REITs are more than just a “collection of assets,” as they were once viewed, and instead offer exposure to quality business models and professional management teams with long track records of value creation.
Deep dive into the next market regime, shielding against risks, and safeguarding your investments in a highly anticipated webcast featuring Kevin O’Leary, renowned investor and TV personality.
Direct Indexing empowers RIAs to transform tax losses into valuable assets, helping clients offset capital gains on federal tax returns and minimize annual income tax liabilities.
Ryan Russell passed away, following a 17-month battle with cancer.
Much like Halloween, it has been a scary time for investors.
Credit volumes witnessed some strong highs and lows in the third quarter. Notably, July—a month where trading volumes are generally steady—saw very inconsistent flows over the month. September, meanwhile, followed historical trends with an increase in primary market supply, reflecting higher volumes in the secondary.
Despite progress on bringing down inflation from mid-2022 highs, data from online job postings suggests that wage pressures may be reaccelerating. Beneath the surface, growing divergence in wage gains across occupation categories may be adding a layer of complexity to the outlook for labor markets.
Rising yields have undoubtedly done a number on bond prices, but they open up bearish opportunities in certain inverse leverage exchange traded funds (ETFs).
Credit challenges to come as the economy slows.
The calendar third quarter of 2023 was a messy one for financial markets at large, and we were not immune to its lack of charms. Nonetheless, it’s been a pretty good year for our small-cap strategy.
The longer the U.S. debt is left to grow, the harder it will be to correct.
Real gross domestic product (GDP) is comprised of four major subcomponents. In the Q3 GDP third estimate, three of the four components made positive contributions.
Andrew Altfest has had a unique journey through the advisory profession. He joined the firm founded by his father, Lew Altfest, and rose to become president of Altfest Personal Wealth Management. He then founded the technology firm, FP Alpha, and became its CEO. Andrew will walk us through his journey to become an advisor and how that experience led to the creation and evolution of FP Alpha. The expectations of advisors and their clients continue to change, which is what led to the introduction of advanced technologies based on AI. This allows firms to scale their practices with innovative technologies.
The strength in consumer demand has been one of the defining characteristics of a very resilient U.S. economy and September’s retail and food services sales report confirmed that the U.S. consumer is alive and well.
The relationship and the recent divergence between real rates and stock valuations is critical. Be ready for the historical trend to reassert itself.
Here are my seven keys to emerging as a leader.
Investments in alternative energy have become unattractive due to higher interest rates, not changes in government policies, adoption or pricing of green technologies.
In the month of October, gold’s price began to trend upward. This jump in the price of the precious metal comes after consecutive drops in its value since May.
Big tech has obviously been a major mover for the stock market in 2023. With third quarter earnings forthcoming, there should be plenty of opportunities for broad-based ETF as well as single-stock ETF plays.
For a fleeting moment this month, investment bankers in leveraged finance — the lucrative lending that oils the wheels of M&A and feeds the $1.3 trillion market for collateralized loan obligations — had rare cause for cheer.
We have been looking at big historical/economic/political cycles for the past two months.
As investors face continued macroeconomic and market uncertainty, evolving the 60/40 portfolio of stocks and bonds to include alternative investments may help build portfolio resiliency.
The $25.8 trillion market for US Treasury debt is like the circulatory system for the world’s financial markets — everything else relies on it. In recent years blockages have occasionally formed, and central banks have had to step in to restore the money flow.
Top US regulators are zeroing in on dangers posed by highly leveraged hedge fund trades, and considering options to rein in risks to the broader financial system.
Exchange-traded funds offering investors betting on or against Tesla Inc. two times the returns of the volatile stock launched Thursday, after what seemed like a long-shot bid at winning regulatory approval.
The long history of business cycles illustrates that rising inflation precedes recessions. Inflation accelerations don’t just happen, they are caused.
When it comes to processing power for artificial intelligence (AI) applications, speed is essential, but chipmaker Nvidia also wants to be first in terms of manufacturing.
A multi-asset approach to sustainable investing brings a broad and more balanced palette to paint with.
Few are saying it out loud, but it seems plenty of investment banking leaders think a big rebound in dealmaking and fundraising is around the corner.
Some investors are considering making tactical tilts to their fixed income portfolios to take advantage of the current high-yield environment.
Japanese profits have benefited from the prolonged deleveraging of Japan Inc. The reduction in debt coupled with exceptionally low interest rates has allowed cash flow to impact the bottom line.
As the “soft landing” narrative grows, the risk of a “crisis” event in the economy increases. Will the Fed trigger another crisis event? While unknown, the risk seems likely as the Fed’s “higher for longer” narrative is compromised by lagging economic data.
Howard Marks, the legendary credit investor and Oaktree Capital Management co-founder, has historically taken a humble approach to investing: the macro future is essentially unknowable, so active investors should focus on the small-picture things where they can gain an informational advantage.
Value-conscious, historically-informed, full-cycle investors place a great deal of emphasis on the relationship between the price an investor pays today and the cash flows they can expect to receive in the future. The reason is simple.
The High Yield Bond category is up 5.9% through September, ranking it among the best performers in the fixed income space. Payden & Rygel’s Jordan Lopez and Nick Burns outline three factors contributing to the market’s strength.
Our September Cyclical Forum was the first to be held in London, where the economic situation today reflects what’s happening around the world.
The higher-for-longer interest rates narrative could continue to negatively affect small-cap companies. This is because they look to stay afloat in the current macroeconomic environment.
However, $22 billion moved into fundamentally weighted equity index ETFs, while dividend and momentum ETFs had outflows. This is sizable and warrants some added attention.
Leveraged and Inverse Funds
Goldman Says Sharp Drop in Volatility Is Opportunity for Hedging
The recent sharp pullback in volatility as year-end approaches creates hedging opportunities given the cloudy outlook for equities, according to Goldman Sachs Group Inc. strategists.
Opportunities in Private Credit: Stepping in as Banks Step Out
As banks pull back from many types of lending, demand for capital is outpacing supply, providing the best potential opportunities in private credit since the GFC.
Private Equity's Bubble Vintage May Fizzle
Private equity firms that spent hundreds of billions of dollars on acquisitions at the top of the market risk a nasty hangover.
Exchange 2024 Keynote Lineup Showcases Breadth of Expertise
Exchange has assembled an impressive lineup of keynote speakers. The conference is just around the corner, with the financial services community gathering February 11-14 in Miami Beach. Here’s what to expect from the keynote speakers.
Margin Debt Down 6.7% in October; Third Straight Decline
FINRA has released new data for margin debt, now available through October. The latest debt level fell for a third straight month to $635.28 billion. Margin debt is down 6.7% month-over-month (MoM) and down 2.2% year-over-year (YoY). However, after adjusting for inflation, debt level is down 6.7% MoM and down 5.3% YoY.
Annuities Are Back in Fashion, But Are They Safe?
Every time interest rates go up there is a flurry of demand for a product that has been around at least since the Roman Empire — annuities. The insurance industry has already seen rapid growth in annuity sales since 2021 and if rates remain at or move above current levels, demand seems poised to explode.
Goldman Alums Set Up Matchmaking Platform for Private Credit
Two former Goldman Sachs Group Inc. bankers want to take the $1.6 trillion private credit revolution from Wall Street to Main Street.
Why Asia Matters
CIO designate Sean Taylor gives his take on what Asia has to offer global and emerging markets investors, from growth, to diversification, to innovation.
How CLOs Can Provide an Alternative to Traditional Bond ETFs
Fixed income ETF demand has been strong in 2023 led by Treasury ETFs. However, advisors have been rewarded by turning to alternatives in the fixed income space, such as those focused on the collateralized loan obligations (CLOs) market.
Is a Hedge Fund-Style Investment Right for You?
Former Bridgewater Associates LP executive Bob Elliott’s plan for exchange-traded funds that employ hedge fund strategies has sharpened the debate about whether retail investors should have access to such approaches.
After Large-Caps Dominance, It Could Be Small Cap’s Turn
Year to date, the Russell 2000’s scant 1% gain is dwarfed by the S&P 500’s 18% gain. But that could be changing. After dominating much of 2023, large-caps could potentially step aside for small-caps to take the majority of gains.
Today’s Yield Curve Steepening Is Not Different This Time, It’s Not The Same
The steepening yield curve has grabbed my attention. Historically, it's been a reliable investment signal. However, as I discuss in my article below, today's might not be occurring for the same reasons as in the past. It's not that it's different this time. It just might not be the same (so far).
Fourth Quarter 2023 Fixed-Income Sector Views
In this issue of Fixed-Income Sector Views, our Sector Teams identify positive technical trends that have helped to support spreads, but remain vigilant for signs of credit deterioration as the slowing economy and the bite of higher rates start to be felt by issuers.
Soft Selling a Hard Landing
For the better part of two years, investors have been primed with hope of a “Fed pivot” that will presumably restore easy monetary policy and supportive conditions for the financial markets.
The New “New” Alpha
Picking the “right” stock is akin to betting on a game; not only must one pick the right team (beta), but also by how much (alpha).
Lasting Recovery in Small Caps Still Elusive as Debt Costs Bite
The powerful rally in small-cap stocks looks like yet another false start rather than a lasting recovery.
Gaining Global Exposure to Gold Miners
Using LOGICLY data, we look at two of Direxion’s leveraged gold miners ETFs and their key features.
Personalization in Retirement Plans Is Paramount
Individuals are increasingly looking for more tailored investment solutions, so it makes sense for plan fiduciaries to consider a more personalized approach, according to John Kutz, National Retirement Plan Strategist. He says personalization may be the ticket to better retirement outcomes.
The Basics of Short Selling
Investing in the stock market typically brings to mind the strategy of buying low and selling high. However, there’s another, somewhat counterintuitive method some investors employ: short selling.
Portfolio Rebalancing, Part 2: The Private Markets Puzzle
Portfolios with large allocations to alternatives can have many benefits. However, alternative allocations can deviate meaningfully from policy, particularly during periods of equity-market turbulence.
Echoes of Bitcoin’s 2021 Record Run Emerge in the Derivatives Market
A burst of activity in Bitcoin derivatives has evoked memories of the period in late 2021 when the token surged to an all-time high.
A Changing World: The New Psychological Workplace Contract
A new psychological contract is transforming the modern workplace, highlighted by an increase in collective actions and changing employee expectations.
US Treasury Market Is Resilient Despite ‘Shocks,’ Official Says
The Treasury Department’s top domestic finance official said the US government debt market has functioned well during a year of outsized interest-rate volatility, a regional banking crisis and the recent hack of the world’s largest bank.
‘Prime Is Fine’ in Real Estate. Except When It’s Not
A charismatic entrepreneur pulls in wealthy investors to amass a portfolio of some of the finest prime real estate. Banks and bondholders are persuaded to provide the leverage. What could possibly go wrong?
The Problem of Mixed Market Signals and Correlations
Confounding market and economic signals persist as the year’s end draws near. In a year punctuated by heightened uncertainty as investors attempted to navigate a confluence of risk factors, stock and bond correlations proved a significant challenge to traditional portfolios.
Mega-Cap Tech a Safe Haven
Year-to-date, technology has outperformed the broader market largely given the prevalence of low leverage, high profitability and consistent earnings across many names in the mega-cap tech space.
Three Things to Prevent a Treasury Market Meltdown
The market for US Treasury securities is arguably the world’s most important: a haven for investors in turbulent times, and a benchmark for virtually all other assets.
Prime Time for Bonds
In our 2024 outlook, bonds emerge as a standout asset class, offering strong prospects, resilience, diversification, and attractive valuations compared with equities.
Is Your Website Attracting or Repelling Ideal Clients?
It’s true – first impressions are everything, and when it comes to your website, they happen in a flash.
Roller Coaster: Markets Take a Ride
Like some advances earlier this year, the market's current surge hasn't been defined by strong breadth underneath the surface—which will be key for a sustained, durable advance.
How Long Will Consumers Keep Spending?
We speak with ClearBridge Investments’ Jeff Schulze about a topic on many investors’ minds: the 10-year US Treasury yield and the path of monetary policy. He also shares his views on the latest US retail sales data and whether consumer resilience will last into 2024.
Where Does AI Fit in Your Firm’s Future?
This article provides a brief guide to the AI technologies available (it’s not just ChatGPT), their applications in wealth management, and how your firm can define specific business outcomes to achieve.
Confidence
A China ‘Recovery’: How important is the loss of confidence within China itself?
America's Driving Habits as of September 2023
Travel on all roads and streets increased in September. The 12-month moving average was up 0.1% month-over-month and was up 1.4% year-over-year. If we factor in population growth, the 12-month MA of the civilian population-adjusted data (age 16-and-over) was unchanged MoM and up 0.2% YoY.
How to Select PE Investments
Private equity (PE) has become a staple of institutional portfolios, but its performance has often been disappointing. New research shows that the levels of specialization and portfolio diversification should be important considerations when selecting a manager to implement a PE strategy.
Bond Bear Market. Is It Dead, Or Just Hibernating?
Is the bond bear market finally over? That is the question everyone is asking now that bond prices rallied sharply following the November FOMC policy meeting.
Buying Junk Bonds Is the Top Contrarian Trade for 2024
Worries about an economic downturn aren’t enough to dissuade market participants from being bullish on risky debt as their top contrarian trade, according to the latest Bloomberg Markets Live Pulse survey.
The Time Could Finally Be Here for Emerging Markets Bulls
Rising interest rates and inflation have kept emerging markets (EM) bulls from charging. But an improving macroeconomic environment could potentially be underway after the Federal Reserve’s recent rate pause.
Fed Rate Pause Could Clear Path for Further S&P 500 Gains
Geopolitical factors and higher-for-longer interest rates have taken the steam out of 2023’s equities rally the past few months. But the recent rate pause could clear the path for gains in the S&P 500 for the remainder of the year.
Keeping It Real
The 2- through 30-year Treasuries rallied hard to drop yields from 12 to 18 basis points. By example, the 10-year Treasury price bottomed out at $91.86 (4.93%) and peaked at $95.25 (4.48%). This is a 3.4-point price swing or 45 basis point drop in yield.
Fed Pause Bringing Some Bulls Back to Bonds
Interest rates have been rising and yields have followed the same path. So traders bullish on bonds have essentially been seeing a repeat of 2022’s weakness. However, the recent pause in rate hikes by the Federal Reserve could bring more bulls back.
Bank of Japan: End of an Era?
Policy changes at the Bank of Japan could potentially reverse capital flows, shift global yields higher, contribute to a stronger yen, and increase the value of Japanese stocks.
UBS Made a Fast Start in Butchering Credit Suisse
Sergio Ermotti promised ruthlessness in reshaping Credit Suisse Group AG, and the chief executive officer of UBS Group AG has been true to his word.
2023 Fall Market Outlook
With the race to year-end now upon us, I share my thoughts on why, despite the recent reset and higher rates, I still see several reasons for market optimism for the remainder of the year.
Get in Early on China’s Economic Recovery With This ETF
Given the response from China’s highest leadership levels, a fast recovery is preferable. The second largest economy will have to do this without a heavy influx of financial aid from the government. It would have to rely on measured steps in policy adjustments.
Was Bankman-Fried Wrongly Convicted?
Sam Bankman-Fried’s widely anticipated guilty verdict has been rendered. But Michael Lewis’ book raises many questions, including the existence and extent of an actual crime.
Tesla Continues to Face Bearish Pressure After Q3 Earnings
Tesla’s stock has fallen 20% the past month as bears continue to apply pressure following the electric automaker’s Q3 earnings report. A Tesla turnaround or more selling will provide enough volatility for traders unsure of which side to take, which is where leveraged exchange-traded funds (ETFs) can help.
K2 Hedge Fund Strategy Outlook: Fourth Quarter 2023
Higher macro and market volatility, along with greater dispersion, creates a favorable environment for active trading, according to K2 Advisors. Get the team’s latest hedge-fund strategy outlook.
Crypto ETFs: What’s Next?
It has been several weeks since ether futures ETFs have launched with little fanfare in early October. But since then, the crypto ETF market has seen several significant events which has caused the price of bitcoin to rise to near $35,000.
Employment Report: 150K Jobs Added in October
The latest employment report showed 150,000 jobs were added in October, less than the expected addition of 180,000 new jobs. Meanwhile, the unemployment rate increased to 3.9%.
How Can “Smart Beta” Go Horribly Wrong?
In smart beta, we find that factor returns—net of changes in valuation levels—are much lower than recent performance suggests. In fact, many of the most popular new factors (some 458 at last count) have succeeded solely because they have become more expensive.
Income Opportunities in Bonds and Beyond
It’s been a great year for alternative income strategies as inflation, interest rate, and recession risk fears dominated markets. Garrett Paolella of NEOS and Christian Magoon of Amplify ETFs joined VettaFi’s Tom Lydon to discuss alternative income opportunities at the Income Strategy Symposium hosted by VettaFi on October 27.
REITs: Providing Visibility in an Age of Uncertainty
Franklin Equity Group portfolio managers Daniel Scher and Blair Schmicker make the case that REITs are more than just a “collection of assets,” as they were once viewed, and instead offer exposure to quality business models and professional management teams with long track records of value creation.
Why Now: Seizing Opportunities in Small-Caps
Deep dive into the next market regime, shielding against risks, and safeguarding your investments in a highly anticipated webcast featuring Kevin O’Leary, renowned investor and TV personality.
Leveraging Fall Opportunities: How RIAs Can Potentially Optimize Portfolios With Direct Indexing
Direct Indexing empowers RIAs to transform tax losses into valuable assets, helping clients offset capital gains on federal tax returns and minimize annual income tax liabilities.
Ryan Russell (1982-2023)
Ryan Russell passed away, following a 17-month battle with cancer.
Five Reasons We Remain Optimistic on Equities
Much like Halloween, it has been a scary time for investors.
Quarterly Trading Report – Q3 2023: A Cruel Summer for Trading Volumes?
Credit volumes witnessed some strong highs and lows in the third quarter. Notably, July—a month where trading volumes are generally steady—saw very inconsistent flows over the month. September, meanwhile, followed historical trends with an increase in primary market supply, reflecting higher volumes in the secondary.
Charting a Course in Choppier Waters
Despite progress on bringing down inflation from mid-2022 highs, data from online job postings suggests that wage pressures may be reaccelerating. Beneath the surface, growing divergence in wage gains across occupation categories may be adding a layer of complexity to the outlook for labor markets.
High Yields Can Offer Bearish Opportunities in These ETFs
Rising yields have undoubtedly done a number on bond prices, but they open up bearish opportunities in certain inverse leverage exchange traded funds (ETFs).
Technical Support Remains Strong but Fundamental Pressures to Grow in 2024
Credit challenges to come as the economy slows.
Lines in the Yield Sand
The calendar third quarter of 2023 was a messy one for financial markets at large, and we were not immune to its lack of charms. Nonetheless, it’s been a pretty good year for our small-cap strategy.
A Deep Dive Into U.S. Debt
The longer the U.S. debt is left to grow, the harder it will be to correct.
An Inside Look at the Q3 2023 GDP Advance Estimate
Real gross domestic product (GDP) is comprised of four major subcomponents. In the Q3 GDP third estimate, three of the four components made positive contributions.
How AI is Transforming Wealth Management
Andrew Altfest has had a unique journey through the advisory profession. He joined the firm founded by his father, Lew Altfest, and rose to become president of Altfest Personal Wealth Management. He then founded the technology firm, FP Alpha, and became its CEO. Andrew will walk us through his journey to become an advisor and how that experience led to the creation and evolution of FP Alpha. The expectations of advisors and their clients continue to change, which is what led to the introduction of advanced technologies based on AI. This allows firms to scale their practices with innovative technologies.
Strength in Consumer Demand Remained Intact in Q3
The strength in consumer demand has been one of the defining characteristics of a very resilient U.S. economy and September’s retail and food services sales report confirmed that the U.S. consumer is alive and well.
Real Rates Drive Stock Prices
The relationship and the recent divergence between real rates and stock valuations is critical. Be ready for the historical trend to reassert itself.
Moving from Successful Advisor to Successful Leader
Here are my seven keys to emerging as a leader.
What Happened to ESG Stocks?
Investments in alternative energy have become unattractive due to higher interest rates, not changes in government policies, adoption or pricing of green technologies.
Gold’s Price Continues to Move in a Positive Direction
In the month of October, gold’s price began to trend upward. This jump in the price of the precious metal comes after consecutive drops in its value since May.
Q3 Earnings Should Provide Plenty of Opportunities in Big Tech
Big tech has obviously been a major mover for the stock market in 2023. With third quarter earnings forthcoming, there should be plenty of opportunities for broad-based ETF as well as single-stock ETF plays.
A Shrinking $1.3 Trillion Securities Market Is Bad News for the Economy
For a fleeting moment this month, investment bankers in leveraged finance — the lucrative lending that oils the wheels of M&A and feeds the $1.3 trillion market for collateralized loan obligations — had rare cause for cheer.
Supercycle of Debt
We have been looking at big historical/economic/political cycles for the past two months.
Targeting Resilient Portfolio Construction With Alternatives
As investors face continued macroeconomic and market uncertainty, evolving the 60/40 portfolio of stocks and bonds to include alternative investments may help build portfolio resiliency.
How to Keep the Treasuries Market Functioning
The $25.8 trillion market for US Treasury debt is like the circulatory system for the world’s financial markets — everything else relies on it. In recent years blockages have occasionally formed, and central banks have had to step in to restore the money flow.
US Weighs Leaning on Banks to Curb Hedge Fund Leveraged Trading
Top US regulators are zeroing in on dangers posed by highly leveraged hedge fund trades, and considering options to rein in risks to the broader financial system.
New ETFs Riding Tesla’s Famous Volatility Arrive on Wall Street
Exchange-traded funds offering investors betting on or against Tesla Inc. two times the returns of the volatile stock launched Thursday, after what seemed like a long-shot bid at winning regulatory approval.
Quarterly Review and Outlook Third Quarter 2023
The long history of business cycles illustrates that rising inflation precedes recessions. Inflation accelerations don’t just happen, they are caused.
Rapid Deployment of AI Chips Will Help Nvidia
When it comes to processing power for artificial intelligence (AI) applications, speed is essential, but chipmaker Nvidia also wants to be first in terms of manufacturing.
Seeking Balance in Sustainable Multi-Asset Investing
A multi-asset approach to sustainable investing brings a broad and more balanced palette to paint with.
There's a Good Reason Why Wall Street Is Overpaying Bankers
Few are saying it out loud, but it seems plenty of investment banking leaders think a big rebound in dealmaking and fundraising is around the corner.
The Role Fixed Income Plays for Non-Profit Investors
Some investors are considering making tactical tilts to their fixed income portfolios to take advantage of the current high-yield environment.
Japan: The Land of the Rising Profits
Japanese profits have benefited from the prolonged deleveraging of Japan Inc. The reduction in debt coupled with exceptionally low interest rates has allowed cash flow to impact the bottom line.
Crisis Events Are A Hallmark Of The Federal Reserve
As the “soft landing” narrative grows, the risk of a “crisis” event in the economy increases. Will the Fed trigger another crisis event? While unknown, the risk seems likely as the Fed’s “higher for longer” narrative is compromised by lagging economic data.
Marks or Ackman? Who You Gonna Trust?
Howard Marks, the legendary credit investor and Oaktree Capital Management co-founder, has historically taken a humble approach to investing: the macro future is essentially unknowable, so active investors should focus on the small-picture things where they can gain an informational advantage.
When the Bough Breaks
Value-conscious, historically-informed, full-cycle investors place a great deal of emphasis on the relationship between the price an investor pays today and the cash flows they can expect to receive in the future. The reason is simple.
The Case For High Yield Bonds: Investors with Patience Can Be Rewarded
The High Yield Bond category is up 5.9% through September, ranking it among the best performers in the fixed income space. Payden & Rygel’s Jordan Lopez and Nick Burns outline three factors contributing to the market’s strength.
Post Peak
Our September Cyclical Forum was the first to be held in London, where the economic situation today reflects what’s happening around the world.
Small-Cap Bears Thrive as Russell 2000 Enters Negative Territory
The higher-for-longer interest rates narrative could continue to negatively affect small-cap companies. This is because they look to stay afloat in the current macroeconomic environment.
Fundamentals Matter to ETF Investors
However, $22 billion moved into fundamentally weighted equity index ETFs, while dividend and momentum ETFs had outflows. This is sizable and warrants some added attention.