Liquidity

How will the U.S. dollar respond to Federal Reserve rate cuts? The factors that have supported a strong dollar for years remain largely intact.

We are currently in the “everything market.” It doesn’t matter what you have probably invested in; it is currently increasing in value. However, it isn’t likely for the reasons you think. A recent Marketwatch interview with the always bullish Jim Paulson got his reasoning for the rally.

As we approach the final stretch of 2024, much of the nation’s focus is on the upcoming U.S. presidential election. But while the political landscape remains uncertain, the markets are painting a different picture. September, traditionally a sluggish month for global equities, delivered an unexpected surge.

Options-based ETFs are one of the fastest-growing categories in the market today, with product proliferation and adoption rising quickly.

When looking at the increasingly complex structure of corporate lending in the present day, it can be easy to lose sight of the purpose of private credit and its lasting value to investors.

Investors have been embracing actively managed fixed income ETFs in 2024. The latest suite of active ETFs to catch my eye are from State Street Global Advisors.

We expect bond yields to trend gradually lower—but it may be a bumpy ride. These seven strategies may help investors take advantage.

September is typically the weakest month of the year for stocks, but thanks to the much-anticipated federal funds rate cut, the S&P 500 turned in its first positive performance in a September since 2019

The major market event in September was the Fed's 50 basis point rate cut following the September 18th Federal Open Market Committee meeting. There was broad consensus the Fed would cut rates, though the 50 basis points (as opposed to 25) and perhaps the tone of Jay Powell's press conference surprised to the upside...

CLOs have delivered the most attractive risk-adjusted returns in fixed income over the past decade, but are often deemed 'too complex.'

We believe municipal bonds currently offer a compelling balance of risk and reward for investors in higher tax brackets.

For many investors, the fixed income portion of their portfolio is intended to be the ballast of the portfolio.

In the report, Head of Greater China & Portfolio Manager Victoria Mio, explains why China’s decisive pivot from debt control to growth support could be the catalyst needed to restore confidence and unlock value in China’s markets.

Our experts explore the implications of wider S&P 500 earnings growth, potential Fed rate cuts, and the outlook for global equities and bonds amidst ongoing economic shifts.

Last week, the Federal Reserve made a significant move by cutting its overnight lending rate by 50 basis points. This marks the first rate cut since 2020, signaling the Fed is aggressively supporting the economy amid a backdrop of softening economic data. For investors, understanding how similar rate cuts have historically impacted markets and which sectors tend to benefit is key to navigating the months ahead.

I attended and spoke at the European Blockchain Convention this week in Barcelona, where the energy around digital assets, Bitcoin and Web3 was palpable. Among the 6,000 attendees, there was a sense that we’re on the brink of a new era in finance and digital infrastructure.

Portfolio Manager Andrew Mattock, CFA, assesses the key components of the growth measures announced by the central bank and financial regulators in terms of their potential impact on the economy and the Chinese equity market.

A new wave of opportunity seems set to flow into private credit markets, which could enhance risk-adjusted returns and diversify portfolios. What's driving this potential?

Chief Investment Officer Sean Taylor provides his insights on how the Fed’s 50 basis point-rate cut may affect emerging economies, particularly in Asia and Latin America, how it impacts portfolio allocations and the sectors he believes are poised for growth amid this shift.

Fixed income strategy and opportunities have remained relatively unchanged over the past few months. However, the much-talked-about monetary policy change has commenced.

Schwab Sector Views is our six- to 12-month outlook for stock sectors, which represent broad sectors of the economy. The Schwab Center for Financial Research (SCFR) combines a factor-based approach with a market and economic assessment to determine the ratings. For the basics on sectors, please see Stock Sectors: What Are They? How Are They Used?

On September 18, the Federal Reserve cut the Federal funds rate, as expected, announcing at the same time that the Fed will continue to reduce its balance sheet. In my view, both of these decisions were appropriate. The Fed reduced short-term rates by 50 basis points, which was consistent with economic conditions that remain near the threshold of recession.

At this year's Future Proof, Jeffrey Gundlach took to the main stage and sat down for a candid conversation with CNBC’s Scott Wapner.

Since mid-2022, when the Federal Reserve was in the midst of its aggressive hiking cycle, investors piled over $1.6 trillion into money market funds, which include Treasury bills.

In 2021, the stock/bond correlation flipped to positive after remaining negative for a majority of the preceding 20 years.

Since 2020, momentum investing has generated significantly better returns than other strategies. Such is not surprising, given the massive amounts of stimulus injected into the financial system. However, Brett Arends for Marketwatch noted in 2021 that momentum investing can give you an edge.

I’m moving up a letter I was planning to share with you on my birthday weekend in two weeks. The story about sandpiles and the financial system may be the most popular letter I’ve written in the last 25 years. It is one we should all re-read every few years to remind us how change happens slowly, then suddenly.

As GMO celebrates its 30th anniversary managing emerging debt this year, we offer our comprehensive guide to emerging debt markets. Given the tumultuous recent events – a global pandemic, defaults, repricing of interest rates, relentless strength in the U.S. dollar – we’ll focus on the Why as a starting point. Then we’ll dive into the proliferating How, covering strategies and vehicles.

From "how" to "why now," here are four things investors should understand about bond investing.

The Northern Trust Economics team reacts to the Fed's decision and shares its outlook for U.S. growth, employment and inflation.

Policymakers indicated that more interest rate cuts were likely in coming months.

MSCI boosted India’s weighting in the MSCI Emerging Markets Index and reduced China’s in its latest quarterly rebalance, continuing long-term trends.

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

Many investors understandably are wondering where Japan’s equity markets are heading. The market had a good year through June. After that it changed. The Bank of Japan's hawkishly delivered interest rate increase on July 31 preceded the release of weak U.S. economic data.

VettaFi provides an overview of the Marcellus and Utica shale.

Munis cemented their best “summer” since 2010 after another month of strong performance. Some near-term caution is warranted given that September has been historically challenging. Robust issuance ahead of the election should provide opportunities in the primary market.

Deal activity in private equity has slowed significantly from 2021 due to high interest rates and economic uncertainty.

History suggests Presidential elections are not nearly as important to the financial markets as the media plays them up to be, and a focus on fundamentals rather than political slogans has generally been beneficial. Historical asset class and sector performance shows virtually no consistent performance pattern under Democratic or Republican Presidents.

The Federal Reserve is widely expected to begin cutting interest rates at its September meeting. Market performance may depend on whether the pace of cuts is fast or slow.

How rapidly should the Fed cut rates?

The longest continuous yield curve inversion has finally come to an end. Or has it? The answer depends on how you measure it.

The S&P 500 index is a critical benchmark for the U.S. equity market, and its performance often dictates investor sentiment and decision-making. Between November 1, 2022, and September 6, 2024, the S&P 500 experienced a significant rally but not without volatility. Currently, investors have very mixed views about where markets are heading next as concerns of a recession linger or what changes to monetary policy will cause.

As we move into the final stretch of 2024, many investors may be asking themselves: Is it time to give airline stocks another look? According to a new report from Bank of America (BofA), the answer might very well be yes

States enter fiscal 2025 maintaining stable reserves and moderating fixed costs, yet we expect many will need to make modest spending cuts due to exhaustion of federal pandemic aid.

Certificates of deposit (CDs) and Treasuries both can offer steady, predictable investment income—but how to decide between them? Here are five factors to help you choose.

While the pace of Federal Reserve cuts is in question, all roads lead to lower interest rates.

Balanced risks to inflation and employment indicate it’s time for the Fed to normalize interest rates, enhancing a positive backdrop for bonds.

Passive fixed income index investing has evolved significantly over the previous decade, offering investors the flexibility to align risk requirements and investment goals. Learn more from our experts.

Recent Fed commentary and economic data have crystallized investor confidence in rate cuts coming in less than a week

History typically shows that election years don't produce major volatility swings in the municipal bond market.

Investors may find themselves prognosticating about future rates relative to current rates in an attempt to optimize their portfolio.

In emerging markets, technological advancements present a unique opportunity to empower underserved communities.

On the back of recent cooling in economic growth, an uptick in unemployment, and moderating inflation, the Federal Reserve (Fed) looks set to begin its rate-cutting cycle at its September meeting.

Last week, the BlackRock Target Allocation Team reduced their equity exposure and reduced some growth allocations in favor of value.

Stock buybacks have boomed in recent years. With corporate cash flows remaining high and potential rate cuts from the Fed, the trend appears set to continue.