Commentary

What to Do When Black Swans Swim

Coronavirus is a global pandemic that few if any could have predicted, but it’s deteriorating fundamentals throughout 2019 into 2020 that set the table for the recent extreme market volatility. Now that volatility has clearly arrived, what‘s the strategy when black swans swim?

Commentary

If It Quacks Like a Bubble…

Every instance of financial speculation today is termed a “bubble”, but true financial bubbles are rarer than most investors believe and they go beyond the financial markets and pervade society.

Commentary

Please Stop Saying Everyone Is so Bearish

Throughout this 10-year bull market, investors have been overly cautious toward equity markets and ignored “new highs”. Now in this late-cycle market environment, investors are piling into cyclicality, private equity and venture capital. It’s time to stop saying everyone is so bearish.

Commentary

Dusting off the “fire extinguishers”

Smoke detectors and fire extinguishers are critical safety devices. But investors in every cycle ignore the markets’ warning signals regarding risk. Rather than ignore the warnings, we are dusting off and priming the traditional portfolio “fire extinguishers”.

Commentary

Invest like a Chameleon: Change Your Colors as the Market Environment Changes

Today’s markets are experiencing decreasing liquidity amid increasing volatility. To stay ahead, investors must adapt their strategies to the ever changing market environment and learn to invest like a chameleon.

Commentary

Charts for the Beach

Unprecedented market uncertainty is leading many investors to focus on the markets more than ever, but are they focusing on the right things? For our annual August report, Charts for the Beach, we highlight 5 charts that consensus is currently overlooking.

Commentary

Investing by the Rear-View Mirror

All too frequently investors use the rear-view mirror to determine an investment’s attractiveness. An upward sloping price chart often automatically makes a stock more attractive. Recent performance helps determine a “good” manager. Past interest rate movements can cause changes to bond portfolio duration.

Commentary

Profits Not Politics

One wayward tweet can send the markets spiraling in the short term, but RBA knows that in the long term, profits determine the direction of the markets, not politics.

Commentary

Duration = Risk

Investors remain fixated on longer-duration bonds even as their risk increases. Duration is a measure of risk and myopically focusing on the long end of the curve while it appears to be significantly overvalued may prove fruitless.

Commentary

Be Your Portfolio’s Designated Driver

Investors have remained on the sidelines for most of this 10+ year bull market, yet FOMO is leading many to join the party late. In this late cycle environment, one should consider sobering up before the punch bowl is taken away.

Commentary

Doomed to Repeat the Tech Bubble?

Investors’ current enthusiasm for piling money into next great tech unicorn is ominously reminiscent of March 2000. Might we be doomed to repeat the Tech Bubble?

Commentary

You Can Lead a Horse to Water, but You Can’t Make It Lend

The Fed’s constant balancing act between easing and tightening monetary policy is intended to influence banks’ lending habits, but as the old axiom goes; you can lead a horse to water, but you can’t make it lend.

Commentary

X-raying ETFs

RBA’s unique Pactive® investing approach has made us one of the largest and fastest growing ETF model managers in the United States. But we don’t choose our ETFs at face value. Instead, we treat each ETF as a portfolio before making our selections. Learn why our ETF “x-ray” approach is critical for our investment process.

Commentary

Year Ahead: 2019—Part II: Fundamentals Ultimately Rule?

We think it’s better to position our portfolios based on 2019 fundamentals than structuring them by looking backward at December 2018’s volatility.

Commentary

Year Ahead: 2019—Part I: High Anxiety?

Public policy can be corporate-friendly or corporate-unfriendly. But what if it’s corporate-uncertain? Then investors are faced with volatility. Part I of our Year Ahead investigates the current corporate-uncertain environment.