Expecting a Market Downturn? Make Sure You’re Following the “Noah Rule”
Predicting a major economic or financial event—whether that’s a recession, market downturn or even your own retirement—requires that you also take action. Otherwise your prediction was meaningless.
S&P 500 Snapshot: Another High
The index reached another new high today, closing at 3168.80. It is mostly unchanged from Thursday, up 0.73% from last Friday, and is up 26.41% YTD.
Advisors and Clients Walking past Each Other on Sustainable Investment
Did you know that more than $12 trillion in assets under management are engaged in one or more strategies of sustainable investment in the United States? This comprises more than 25 percent of the professional managed assets across the country and is a 38 percent growth from 2016 figures.
All Asset All Access, December 2019
Research Affiliates discusses why they believe value investing is still alive and well and explains how changes to the display of expense ratios seek to enhance clarity for investors.
Is the Fed Gearing Up for a New Round of Quantitative Easing? Here Are the Possible Signs
“This is not QE. In no sense is this QE.” That was Jerome Powell in early October, answering a reporter’s question on whether the Federal Reserve’s intervention in the overnight U.S. repo market constituted another round of quantitative easing (QE).
How Real Assets Hedge Against Stocks and Bonds
One way to address market volatility is through real assets – natural resources, infrastructure, and real estate. Those tend to have low correlations with traditional stock and bond allocations. I am speaking today with Michael Natale, who explains why an allocation to real assets can hedge against the risks in stocks and bonds.
World Markets Update
All eight indexes on our world watch list posted gains through December 9, 2019. The top performer is our own S&P 500 with a gain of 25.64% and in second is France's CAC 40 with a gain of 26.65%. In third is Germany's DAXK with a gain of 21.71%. Coming in last is Hong Kong's Hang Seng with a gain of 5.43%.
Do Long-Only Portfolios Effectively Capture Factor Returns?
Factor performance, as conceived by Fama and French and refined by others, is based on adding the returns of a “long” portfolio of securities that most embody the factors to a “short” portfolio that least represent the factors. But it is common practice for mutual funds and ETFs to use only the long portfolio. New research show that this approach does effectively capture the returns of the underlying factors.
The Key Trends in the ETF Industry
Matthew Bartolini has recently recommended cybersecurity protection, housing and healthcare stocks for Q4 of 2019. He has also commented on the fact that fixed-income ETFs have recorded record inflows for 2019, and has likened investing the context of weakness in the U.S. manufacturing sector to “driving with the check engine light on.” We discuss those calls as well as other key developments in the ETF industry.
What's Next for China A-Shares Inclusion in MSCI Indices
Improvements in accessibility are expected to accelerate further inclusion in the near term.
Navigating U.S. Wealth Management: Seven Ideas for Financial Advisors and Individual Investors in 20
We aim to support wealth management firms, advisors, and investors as they assess portfolio strategy and navigate the shifting trends we face in the new year.
A Perspective on Secular Bull and Bear Markets
Was the March 2009 low the end of a secular bear market and the beginning of a secular bull? At this point, over ten years later, the S&P 500 has set a series of inflation-adjusted record highs based on monthly averages of daily closes.
The Latest Look at the Total Return Roller Coaster
Here's an interesting set of charts that will especially resonate with those of us who follow economic and market cycles. Imagine that five years ago you invested $10,000 in the S&P 500. How much would it be worth today, with dividends reinvested but adjusted for inflation? The purchasing power of your investment has increased to $15,604 for an annualized real return of 8.93%.
The S&P 500, Dow and Nasdaq Since Their 2000 Highs
This update is in response to a standing request for real (inflation-adjusted) charts of the S&P 500, Dow 30, and Nasdaq Composite.