Small Cap

U.S. stocks typically post their best returns in the final quarter of the year. Our review of S&P 500 performance since the index’s inception in 1957 found an average Q4 uptick of 4%. (Q1 was next best at an average of 2%.)

The prevailing narrative about the U.S. economy is that it’s ‘resilient’: despite rapid rate hikes, economic growth has held up and may even be accelerating.

We believe a mild U.S. recession is more likely than not in 2024, although a soft-landing scenario cannot be ruled out. A recession is also likely in the UK and eurozone, but appears less likely in Australia.

Active management in ETFs are gaining market share in 2023, as leading managers bring their best ideas into the ETF industry.

Rising real interest rates invariably trigger recessions. The residual impact of pandemic related
behaviors delayed the impact in this cycle.

The Bank of Japan met last night to cap off a week of central bank activity.

Intermission is over. Today we resume my series on the global cycle theories that, probably not by coincidence, all point to major change unfolding in the next few years. Finishing it may take some time since I keep finding new material.

Like any recovering reporter, I like to keep tabs on my old beats, and the marijuana ETF space never disappoints. Or, perhaps more accurately, it never stops disappointing.

Quarterly commentary giving an overview of the markets and the importance of having and implementing a strategy when investing in the markets.

Monetary tightening still continues in the form of quantitative tightening, bringing potential volatility, earnings pressures, and lackluster performance to stock markets.

Small-cap stocks and related exchange traded funds are taking a back seat to large-cap counterparts this year. The Russell 2000 Index has shed almost 5% over the past month. However, some market observers remain constructive on smaller stocks.

In our latest Quarterly Letter, Ben Inker and John Pease discuss the new economic regime, how investors can prepare for a recession, and the merits of combining high quality and cheap assets in today’s environment.

However, the regulators made asset management news with their focus on “truth in advertising.” Despite their well-intentioned efforts, it will remain paramount for investors to do their homework and look inside the portfolio.

Active ETFs have scored more investor interest this year than smart beta ETFs—but does that mean the latter will soon be out of the game completely? David Mann, Head of ETF Product & Capital Markets at Franklin Templeton, opines.

While September has been a bit sloppy so far, will further weakness in October weigh on investor sentiment before the seasonally strong period begins?

Even the best scientists in the world cannot reliably forecast drug-test results, so why should investors gamble? Quality businesses are key for healthcare stocks.

In many ways, 2023 continues to be the mirror image of 2022, with the most volatile assets being some of the best performers for much of the year.

Wednesday’s Federal Reserve (Fed) decision to keep the federal funds rate unchanged wasn’t a surprise at all. Markets, as we argued last week, had predicted that the Fed was going to stay put and that is what it did.

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.

We started RBA in 2009 primarily because we thought the US stock market was entering one of the biggest bull markets of our careers. However, most investors did not agree with our bullishness. Now, risk aversion seems a thing of the past.

Environmental, social, and governance policies and investing have become targets of political derision. That doesn’t dampen the need for corporations and governments to pursue agendas tied to climate change and diversity, equity, and inclusion.

I, however, like all Kens, have always had a firm grip on the remote for 100% of the time but I decided to let her have her way just once.

When it comes to sheer equities performance over the last 30 years, there’s no denying the United States compared to the rest of the world. However, that could be changing according to one hedge fund manager.

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.

Artificial intelligence (AI) is widely viewed as the fuel for the rocket known as growth and technology stocks in 2023. While there is truth to that notion, there’s more to the story. Including the “magnificent seven” cadre of mega-cap growth names that are powering the market higher this year.

For many wealth advisors, workplace retirement plans are either a burden or an afterthought, according to John Kutz, National Retirement Plan Strategist at Franklin Templeton. He and his team explore why embracing these plans can benefit their practice, and their clients.

Fund managers have been avoiding emerging markets (EM), especially when it comes to China. However, that doesn’t mean there aren’t opportunities that exist.

The Federal Reserve weighs the data while investors wonder: Is the rate-hike cycle over?

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.

With the rapid pace of urbanization, there’s an increasing demand for efficient and sustainable power solutions, and ABB’s advancements in smart grids and renewable energy integration are pivotal in meeting the demands of this transition.

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.

Yesterday’s Equity Symposium brought together industry thought leaders. Attendees were treated to actionable information. Additionally, the panels presented cutting-edge thinking around equities.

Given concentration risk, understanding what a strategy and portfolio owns is more important than ever in current markets.

In our view, the specific market dynamics that influence a company's sales growth prospects have a greater impact on equity returns than the overall direction of the economy.

In State Street Global Advisors’ recent Gold ETF Impact Study, the firm reported that “36% of surveyed investors don’t invest in gold because they don’t know enough about the ways that they can invest in gold.”

The biggest growth companies continue to increase their concentration in major equity indexes this year. It’s not surprising that investors are starting to rethink their exposure to large-caps, given concentration risk and ongoing market uncertainty.