Review the latest portfolio strategy commentary from Mike Gibbs, managing director of Equity Portfolio & Technical Strategy.
Republicans are invoking the threat of inflation to attack President Joe Biden’s spending plans, after he won approval for $1.9 trillion in virus relief ahead of a broader recovery package that may cost even more.
GSAM has analyzed the asset allocation of thousands of advisor managed portfolios over the years and found that many of those portfolios cluster closely together in terms of expected return and risk characteristics. Model portfolios may help to achieve similar outcomes to what advisors are already getting while also helping advisors realign their time, reduce regulatory and due diligence burdens, establish business continuity, and leverage institutional expertise. Model portfolios, like the Goldman Sachs S&P G-MAPs, maybe a tool to achieve the same results in a simpler fashion.
We believe the Fed’s mortgage purchase program is helping to bolster economic activity, and accomplishing more than Treasury purchases alone.
Structured-outcome ETFs garner tremendous interest from investors in light of the rampant volatility this year. But those defensive-minded funds have also revealed their often overlooked drawbacks – they limit upside gains up to a certain level in order to provide their downside buffer. As a result, the unexpectedly sharp rebound that began in April has whip-sawed investors holding first generation structured-outcome ETFs, and they are now trailing behind as the next leg of the bull market has taken root.
What kind of role does private markets play in building a resilient portfolio in the post-Covid world? Mike explains.
This post is part of a series delving into the growth-versus-value debate. Here we explore three considerations when evaluating growth-versus-value positioning.
Capital markets are in disarray in reaction to the coronavirus crisis and the necessity of pausing the global economy. The CBOE Volatility Index (the VIX) rose to over 80 in March and thankfully has settled down to a level of about 35, which is still over twice its trailing five-year average of about 15.
This is the first major market downturn experienced by most advisor technology platforms. My guest will discuss some of the unique challenges facing fintech vendors as a result of the newly enforced virtual work environment and by the sudden market correction.
As coverage of the COVID-19 pandemic continues to saturate the media, you may have also noted a significant rise in clients’ anxiety level about estate planning and their own mortality.
We favor U.S. stocks to their other developed market peers over the next six to 12 months. Why? The U.S. policy response to the coronavirus shock has been decisive and comprehensive, and has exceeded the scale of policy action in other major developed economies. We expect more to come.
The Fed has moved aggressively to stabilize core assets, including mortgages. Yet several market indicators are still concerning.
Mike explains why it may be prudent re-balancing your portfolio – outside the usual calendar – after the recent market turbulence.
A déjà vu of 2008 in markets lately? Mike explains why we think the coronavirus shock should not spark a 2008-style crisis.
A decisive and coordinated policy action is key to combat the economic fallout from the coronavirus outbreak. Mike explains why.
The Fed could give the economy a powerful boost by maintaining the mix of assets on its balance sheet.
Mike shares how we are updating views on global growth and asset allocation as the coronavirus spreads across the world.
Limited supply and high demand for high-yield municipal bonds may adversely impact an investor’s financial position. Plan now for potential client conversations about exposure to lower quality tax-exempt securities.
The coronavirus outbreak has altered market dynamics since late January – including in the space of equity style factors. One example, Quality has posted more muted gains after strong outperformance in late 2019. We stand by our tactical views on factors for now, including a modest overweight on quality.
Our topic today is multi-asset class and multi-factor-equity strategies. One of the leaders in that field is QS Investors. It offers a quantitative approach that unites the intellectual and academic precision of science, engineering, mathematics, and finance and investment expertise with the power of data and technology.
Mike explains how our global outlook has evolved with the developing coronavirus outbreak.
Here’s how the SECURE Act may impact your clients. Plan now for these conversations.
The coronavirus outbreak that started in China has sent jitters across global financial markets amid fears of a hit to the global economy. We think it is too early to assess the eventual impact on the economy yet see potential downside risks posed by the outbreak – with its unknown magnitude and duration. This underpins our view that U.S. Treasuries provide a source of portfolio resilience.
FINRA’s proposed rule 3241 seeks to mitigate conflicts of interest that may arise when an advisor assumes certain types of fiduciary obligations for a client. It places addition scrutiny in cases where an advisor serves as the trustee or beneficiary for a client.
The Fed has another lever to pull to ease monetary policy, one that could increase savings rates and create more disposable income.
The fourth quarter of 2019 kicked off with a market selloff and more evidence that a protectionist push is hitting the U.S. industrial sector. How are our asset views faring this year to date–and what are the key themes we see shaping markets in the months ahead?
Mike Hunstad was recently featured in an article in Institutional Investor magazine that was titled Why Factor Investing Isn’t Working? We at Advisor Perspectives subsequently ran an article, Factor Investing Works (Despite What Some May Say), by Larry Swedroe, director of research for BAM Alliance, in which readers might have been led to believe that Northern Trust does not believe in factors when, in truth, Mike is going to tell us that the exact opposite is true. As Mike will explain, a complete read of the Institutional Investor article shows that while he pointed out that many factor-based strategies have performed poorly, he attributed this to flawed utilization of factors, and noted that decades of academic research offers evidence that a handful of factors can generate higher risk-adjusted returns than the market. We’d like to give Mike an opportunity to further set the record straight.
For advisors making the big move – or for those just considering it – here are four tips for a smoother transition.
Clearly there is an opportunity for advisors to leverage Batman’s uncanny ability to adapt and prepare.
After the tumult of Q4 2018, investors deserved an easy quarter, and they got it. The Q4 trends of falling rates and rising economic concerns continued. But risk assets, like stocks and non-government fixed income spread products, pulled out of their nose dives with strong performances in Q1 2019. As we look ahead to the remainder of this year, what should bond investors expect?
Recent statistics on student loan debt have found some rather alarming trends. Not only are many parents prioritizing the financing of college for their children over their own retirement, but some are still paying off their own student debt—even into their 60s.
As stewards of client’s nest eggs, advisors are critical to managing clients’ weather volatility and honing focus on long-term investing goals, rather than short-term decisions. Here are three tips to corral clients’ emotional investing decisions.
Here are some authentic questions and topics to integrate into meetings to initiate a substantive conversation with your clients and their heirs.
Early on in my career, I learned there are four psychological reasons investors buy (listed from strongest to weakest).
We believe markets are now broadly priced for an extended period of the status quo – where the current impasse remains, but the UK remains in the EU.
PIMCO has mapped the SDG sustainability reporting of 246 companies globally with the goal of encouraging enhanced disclosure.
We expect volatility as the process moves forward, along with a potential rise in UK sovereign yields and strengthening of the pound, though some Brexit-related risk premium is likely to remain.
Over three days a selection of our investment managers, economists and strategists congregated in London for our annual Global Investment Forum (GIF). The GIF is designed to tune out the day-to-day market noise and focus on key market drivers over the medium term.
As we enter another period of accelerated Brexit negotiations, how can investors best navigate the next few weeks and months? Our assessment is that a number of U.K. assets have already priced in a significant chance of a disruptive Brexit, but there is scope for further moves in either direction, depending on the path the negotiations take.
The UN Sustainable Development Goals provide the investment community, including bond issuers, with a framework for tackling long-term global challenges.
After nearly 30 years of consulting with advisors, representing one-person shops, broker-dealer reps and multi-billion dollar wealth-management practices, there is one question every advisor should hope their clients ask. But too often they are ill-equipped to answer it.
We see key factors beyond Brexit affecting the medium-term economic outlook for the U.K.
We believe the bond market is uniquely suited to both benefit from and provide finance for ESG-related (environmental, social and governance) efforts.
The cost of a college education continues to rise, and along with it, student debt. Roger Michaud, senior vice president and director of college savings for the Franklin Templeton 529 College Savings Plan, and Mike O’Brien, director, Program Marketing, Global Client Marketing, look at how mounting student debt could have a long-term impact on one’s future.
As you evaluate advisor-friendly trust providers, begin with a comprehensive understanding of the associated risks of the directed and delegated options.
The Bank of England has had to navigate a difficult set of circumstances in its attempts to raise interest rates. As far back as 2014, Governor Mark Carney suggested that rate rises could come “sooner than markets currently expect,” only for those aspirations to be dashed. Indeed, the next move in interest rates turned out to be a rate cut, in the aftermath of the June 2016 Brexit vote.
We believe that ESG investing is not only about partnering with issuers who already demonstrate a deeply integrated approach to ESG, but also about engaging with those who wish to move forward with their ESG initiatives. We believe that successful engagement can reduce credit risk, unlock value and influence positive impact.
We believe that ESG investing is not only about partnering with issuers who already demonstrate a deeply integrated approach to ESG, but also about engaging with those who wish to move forward with their ESG initiatives.
Often times advisory firm owners struggle over associate, junior advisor and even partner compensation. They cannot gauge starting salaries, so they keep pushing the human capital decisions off, which is detrimental to the overall success of the firm.
For the first time in over 10 years the Bank of England raised its official policy rate, a hike of 0.25% to 0.5%. The rationale is a combination of growth continuing at or slightly above trend, unemployment falling further from its current 42-year low...