Liquidity

Investors have been increasingly allocating to various alternative investments. However, I don't see them as distinct assets deserving of allocations. As I discuss in my article below, I consider alternatives investment styles and as optional for portfolios as taste is for nutrition.

The Northern Trust Economics team shares its outlook for major markets in the months ahead.

A balanced portfolio needs assets with strong return potential and those that may provide downside mitigation. We believe direct lending can deliver both—a potentially valuable feature, particularly in today’s uncertain market.

Many of the speakers and attendees were bullish on the physical metal, pointing to gold’s resilience in the face of a very strong U.S. dollar and multiyear-high yields.

Last week we began exploring the details of my personal portfolio. This week we will finish and then move back to our discussion of various cycles.

While some stocks may seem expensive, there are areas of opportunity that feature attractive valuations and growth catalysts, according to the Franklin Templeton Investment Solutions team.

ETF Trends interviewed three sources about active ETFs, why financial advisors are opting for these investment solutions for clients, and how these factors have changed in recent years. Each source responded to the same questions in their respective interviews.

To prevent catastrophic climate change and accelerate the global transition to a net-zero economy, policymakers and asset owners urgently need to rethink how we channel capital at scale. The key is to develop new financial instruments that are profitable, liquid, and easily accessible to savers and investors globally.

The September Federal Reserve meeting provided few surprises, but ongoing uncertainty about the Fed's next move may mean more volatility ahead.

Thematic ETFs have come a long way since they made their full debut in the ETF ecosystem.

The European Central Bank is likely at or very near its peak policy rate, but we don’t expect rate cuts in the near term.

Inverted curves (when the gold line goes below the red line meaning that short maturity yields are higher compared to longer maturity yields) have preceded recessions.

Banks have reemerged as a potential pain point for the investment community, as rating agencies recently embarked on a downgrade cycle in the sector.

For new investors, the world of finance can appear daunting. But among the sea of investment options, Treasury bonds (often just called “Treasuries”) are a pillar of stability and reliability.

A return to the Great Moderation Era looks unlikely, which might lead to an increasingly volatile—and somewhat unfamiliar—inflationary, economic, and geopolitical landscape.

The term “Bond Vigilantes” is a nostalgic twist on an old-west theme. In the nineteenth century, the American West formed self-appointed groups, or committees, to seize the duties of law enforcement and judicial authority in situations when citizens found law enforcement lacking or inadequate.

Now seems like a good time to talk about wrappers and which ones are best for different situations. How do you decide whether to use an ETF, a mutual fund, or something else?

Confidence is returning to the bond markets and one sign is corporations’ willingness to start taking on debt again with new issuance.

Credit Research Analysts Greg Schantz and Julian Wellesley dive into why they favor European banks vs US banks and why they see a potential opportunity in Yankee bank bonds.

Competing narratives have emerged to describe the state of the U.S. economy.

Soft consumer confidence and property-market woes are playing a large role in the slowdown of China’s economy.

Today, I am going to do something that I've never done. I am going to start a two-part series describing what is in my personal portfolio and why. Let me start by offering two caveats: This letter is in the “do as I say and not as I do” category.

Bearish China traders have had the upper hand for most of the year. Still, easing deflation could give bulls a glimmer of hope.

If held until the bond is redeemed (either by call or maturity), the annual yield earned for the life of a bond is known upfront at the time of purchase. Knowing the return on an investment upfront makes long-term financial planning a much easier task.

Although US bond yields are well above their lows of the past decade, it’s always a good idea to think globally.

Municipals posted negative total returns amid rising interest rates. Issuance exceeded tempered expectations, while demand waned as performance struggled.

The 10-year Treasury yield has climbed steadily over the past two years. But we believe fixed-income investors should be prepared for lower yields ahead.

How long will the Federal Reserve continue quantitative tightening (QT)? How large will its balance sheet be when QT ends? These important questions impact financial market liquidity, the anchor of asset values. We assess the likely path of QT in the years ahead.

ETFs are the instrument of choice for millions of investors in the U.S. Through a single trade and for a relatively low price, an investor gains broad exposure to a market, sector or niche.

For the savvy private wealth investor, portfolio diversity is key to success. Investing in infrastructure is one option that can help you both optimize your portfolio and make a positive and meaningful impact on your local community.

In this first episode, Franklin Templeton Institute’s Tony Davidow discusses the democratization of alternative investments and related topics with CAIA’s John Bowman.

In his latest memo, Howard Marks discusses the essential choice in both investing and sports. Should you go for more winners or try to eliminate losers? That is, should you emphasize aggressiveness or defensiveness? This is a key decision that every investor has to make thoughtfully, and the answer can be different for each person.

PIMCO’s Global Advisory Board discusses economic and geopolitical factors shaping the long-term global outlook.

Higher yields on cash have allowed some de-risking.

We expect yields to fall later this year and into 2024 as inflation continues to cool.

Today's economic conditions are attractive for BDCs (business development companies), and some benefit from businesses seeking alternative financing sources.

In the final part of our series on global supply chains, portfolio managers Inbok Song and Sherwood Zhang look at the companies that are reconfiguring their networks and portfolio manager Vivek Tanneeru gives his assessment on the investment opportunities.

Mega-cap stocks continue to dominate the market in 2023. The question is, why? After all, many other great companies have arguably much better valuations and fundamentals.

Even though past performance doesn’t guarantee future results, investors should prepare for continued market volatility this month.

Resilient consumer spending has been a pillar of the US economy. While activity may soften, we think the consumer will help the coming slowdown stay mild.

On the interest rate front, the Federal funds rate is now close to systematic benchmarks that have historically been consistent with prevailing core inflation, nominal GDP growth, and unemployment.

Tony Davidow, Senior Alternatives Investment Strategist, at Franklin Templeton Institute, shares some takeaways from a panel discussion on the topic.

In the second part of our series on global supply chains, portfolio managers Inbok Song and Peeyush Mittal examine the regions and countries that may benefit from industries and companies shifting operations.

Seven mega-cap US-based companies – Apple, Microsoft, Amazon, Google, Nvidia, Tesla, and Meta (Facebook) – have stayed top of mind for many investors this year.

Restricting the money supply will help contain inflation.

In general, portfolios can be split into growth assets and principal protecting assets. Growth assets tend to have greater risk coupled with greater income/reward.

Bond investors have been looking for an approach that delivers attractive, repeatable, uncorrelated active returns. Is their wait over?

Stocks are up 18.7% year-to-date, which is good news for portfolios and 401(k)s, but did you know that most of the heavy lifting has been done by a very small number of S&P 500 stocks?

We believe idiosyncratic credit events may occur over the next 12 months, but systemic bank risk is remote.

In an environment of pronounced volatility and less-than-certain equity and bond performance in the last few years, investors are leaning toward more complex strategies such as alternatives.

We believe idiosyncratic credit events may occur over the next 12 months, but systemic bank risk is remote.

We believe the best way to add value is through relative positioning in sector allocations, individual security selection and along the yield curve, holding duration neutral overall. That approach, however, does not prevent us from having views on interest rates and we think bonds offer good value at current rate levels.

Sometimes things sound the same, look the same, or feel the same – but they are not. It doesn’t necessarily mean one is better or worse than another but uniquely dissimilar and serving, unlike purposes.