Portfolio Building

Today’s passive index investing requires active choices, as customization and innovations in index funds have resulted in new considerations for investors and the potential for greater control.

The economic data is coming in very good for markets. Starting with GDP, we observed a modest growth rate of around 2% in the first half of the year. While not spectacular, it’s far from recessionary conditions. This level of growth, with slight inventory accumulation, suggests a stable economic backdrop.

Experts from the third-largest ETF manager by AUM make their predictions regarding active, retail, and inheritances.

Explaining Strong Returns in the Face of Value Headwinds.

Longer duration Treasuries have been mired in a bear market since 2020 but could finally start to see a reversal of fortune.

In this article, Russ Koesterich discusses why bonds are still not a reliable hedge for equities in an environment where inflation remains elevated and volatile.

I have been looking forward to writing this blog for a long time. I joined Russell Investments on July 12, 2004 and now that it is my 20th anniversary, I feel it’s the right moment to share some of what I have learned along the way.

The mid- to long-term costs of missed opportunities by staying in cash mean investors should consider moving off the cash sidelines.

June of 2024 was a good month for financial markets. Leading the pack were (again) technology stocks, with the NASDAQ up 6% on the month. Close in second place were emerging market ex-China stocks, largely driven by India, Taiwan, and South Korea, all of which had large rallies in the month.

The Generation X report released by Natixis Investment Managers included a check of investment sentiment and opportunities for advisors.

Looking to assess your portfolio for the current inflation outlook? Natixis Investment Managers' Cyclicality vs. Inflation outlook can help.

Macro worries meet AI wonderwall. Stocks have managed to climb a wall of macro worries, thanks to largely solid earnings that we believe can expand beyond AI beneficiaries and continue to support prices. As Q3 begins, we look for:

The growing popularity of alternatives creates increased demand for private assets, with one surprising category above all.

Bitcoin could be headed for the stratosphere, according to a new report by Bernstein. The global investment firm is predicting that the world’s top digital asset could hit $200,000 by 2025, $500,000 by 2029 and—no, you’re not seeing things—$1 million per token by 2033.

Partnering with firms that have the requisite scale and demonstrated access to top-tier investment opportunities is one way investors can potentially eliminate the J-curve in a private markets investment program.

High-yield credit is experiencing strong inflows and investor confidence, potentially offering attractive returns and reduced volatility compared to other risk assets.

It’s certainly a challenging time to be an investor. It's probably why a call for caution and diversification seems to be getting louder.

The further acceleration and broadening of corporate profit growth supports RBA’s bullish near-term outlook for many regions and sectors of the stock market. However, when constructing portfolios, it has paid to separate the equity asset allocation decision from the equity selection decision.

Inflation is not fun. And—for the past 30 years—it has largely been a non-issue for consumers. That dynamic has changed. The relevant question is whether this is something persistent and meaningful or simply a fleeting feeling.

After a weak April, markets bounced back in May, with the S&P 500 staging a breathtaking rally in the final few hours of trading on Friday, May 31.

You’ve probably heard the term “direct indexing.” It seems like everyone is talking about it. You’ve probably also read that sales of direct indexing products are booming. But what exactly is direct indexing?

The Federal Open Market Committee is always data-dependent. But the dependency is not always the same. There are times when inflation matters more than the labor market, and times when the situation is reversed. Every regime is unique. There is never a perfect corollary to a previous experience. This time is not different.

Ross Riskin's op-ed examines the potential drawbacks of using glide path portfolios in 529 college savings plans, particularly during high-interest rate environments. He suggests that money market options may offer better capital preservation for funds needed during college enrollment, emphasizing the shift from growth to stability in investment strategies.

VettaFi discusses changes in the MLP/midstream investment product landscape.

Technological disruption creates opportunity—and volatility. But there are ways to capture AI innovation while managing risk.

In this article, Russ Koesterich discusses why stocks are proving to be resilient in the face of higher rates and muted expectations for monetary easing.

Private asset trends may not directly apply to many investors in publicly available strategies, but they can provide helpful data.

Private asset trends may not directly apply to many investors in publicly available strategies, but they can provide helpful data.

We explore how stabilization and growth of global markets may potentially shift preferences toward equities relative to bonds.

When it comes to the financial markets, investors have a litany of investment vehicles to choose from. The choices are nearly unlimited, from brokered certificates of deposit to complex derivative instruments.

Do presidents and prime ministers make economies? Or do economies make presidents and prime ministers? 2024 is a year of significant elections, with more voters heading to the polls worldwide than ever before.

From the end of March until the end of April, the market had a serious rethink about the path of monetary policy for the rest of 2024.

While much remains uncertain regarding rates, inflation, and the economy, quality stock investing proves a boon in any market environment.

Recent media coverage about how best to construct and manage portfolios has many wondering whether institutional investors are facing a paradigm shift right now.

How momentum and election cycles may shift the impact and timing of seasonal trends.

As non-profit investors set their investment and spending policies, it is important to consider their organizational circumstances during a market shock.

John Hancock Investment Management has added a new ETF to the company's growing lineup. JHHY primarily invests in high yield bonds.

One of the main advantages of constructing a portfolio of individual bonds is that it can be customized to meet the precise needs, wants, and objectives of the investor

How and why more advisors are tapping into alternatives—Tony Davidow, Senior Alternatives Investment Strategist at Franklin Templeton Institute, shares insights from a recent gathering.

High quality short-term bonds offer a number portfolio benefits while putting excess cash to work, but what's under the hood matters.

Looking to make a midcap allocation? Midcaps can stand out relative to small- or large-caps thanks to its combination of growth and size.

Much like the NFL draft, portfolio managers undergo rigorous evaluations. Their track record, investment process, and stock selection process are considered. Additionally, qualitative assessments, including manager interviews and onsite visits, offer insights into their character and decision-making prowess.

A changing rate narrative now leaves advisors weighing the costs and benefits of taking on additional interest rate risk.

Over recent decades, the hot tech trends (from search to cellphones to social media to the digital economy and now to AI) have been a predominantly American story.

Interpreting flows into ETFs and mutual funds sometimes feels an awful lot like reading tea leaves, but I love it.

It’s a frequent question asked by organizations looking for an outsourced investment solutions provider. Our answer may surprise you.

So far this year, the US equity market has shown remarkable resilience and US inflation has remained sticky. Against this backdrop, a recent survey of our chief investment officers offers analyses and perspectives on key areas, such as Federal Reserve rate cut expectations, geopolitical risks, uncertain corporate earnings and opportunities in different asset classes.

Investing in private markets has obvious upsides, including potential higher returns, access to a broader opportunity set, and greater diversification.

Ali Dibadj, CEO, shares the industry topics he’s hearing most in conversations with asset allocators, family offices, end-clients, colleagues, investors, and others he meets around the world.

For investors looking to position their portfolios amid ongoing uncertainty, many options strategies benefit from increased volatility.

Why the current momentum trade, despite stretched valuations, could continue.

An update on Model Portfolio Number 3 to see how it’s performed against the S&P 500. The portfolio was to get maximum income out of the portfolio but still try to deal with risk at the maximum extent possible.

Private markets continue to become an even more prevalent component of investor portfolios, providing access to an expanded opportunity set and strong diversification beyond traditional stocks and bonds.

On August 24, 2021, Chuck Carnevale, Co-Founder of FAST Graphs, a.k.a. Mr. Valuation, built three portfolios for dividend income with different objectives. In this video, Chuck will do an update on dividend Model Portfolio Number 2 to see how it’s performed.

A critical question is how do we get as much buying power as possible from the beginning of the crisis through to the other side? Part of the answer is Warren Buffett’s admonition to never bet against America. Better to do as he does, investing in specific parts of America.

A favorite Mark Twain aphorism states, “It ain’t what you don’t know that gets you into trouble. It’s what you know for sure that just ain’t so.”

In this video Chuck Carnevale, Co-Founder of FAST Graphs, a.k.a. Mr. Valuation is going to share a surefire method or strategy to beat the overvalued S&P 500 in both a total income basis as well as a total return basis.

ESG is a massive topic; in fact, so big that it is hard to give it justice in the approximately 1,500 words I have at my disposal in these monthly letters. Consequently, I have decided to split it over two months.