Albert Edwards on the problems facing the US, Italy and China
Expect a recession in the next 18 months, said Albert Edwards. Bond yields will converge with those in Germany and will go negative. The economy will be in deflation – or at least face a significant deflationary “scare.” Those factors, he said, will create a terrific opportunity for fixed-income investors.
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Gundlach’s Forecast for 2019
Jeffrey Gundlach said that 2019 will mark the start of a period when bond markets must reckon with the rising federal deficit. In his most passionate comments ever on this topic, he said the exploding national debt and liabilities involving pension funds, state and local government governments and Social Security have reached a stage that is “totally unthinkable.”
Northern Trust: The Six Themes that Will Drive Markets
Bob Browne is an executive vice president and chief investment officer for Northern Trust, which had $1.1 trillion in assets under management as of September 30, 2018. In this interview, he discusses his firm’s capital market outlook and the six themes that will drive investment returns over the next five years.
Southeastern: A Compelling Time to Invest Outside the U.S.
Josh Shores serves as a principal and director of Southeastern Asset Management, Inc. He is a manager of the Longleaf Partners International Fund (LLINX). In this interview, he discusses why the biggest, broadest and deepest opportunity set for investing is outside the U.S.
Gundlach: Long-term Investors Should Allocate to Emerging Markets
It has been a year where virtually every asset class has suffered negative returns. But emerging market equities have outperformed global indices and, according to Jeffrey Gundlach, that’s where investors should put their money “over the next seven and certainly the next 20 years.”
Advisor Preferences for ESG/SRI Investing
With approximately 150 new fund and ETF launches in 2018, ESG/SRI investing has become a magnet for flows to asset managers. But what are the key motivators driving that trend among financial advisors? And, once an advisor has committed to an ESG/SRI approach, how do they go about selecting a mutual fund or ETF product?
This webinar will review the implications of a large-scale research study recently completed by Advisor Perspectives. Participants will learn:
- What drives advisors to embrace an ESG/SRI approach? – Our research identified the key factors that hold advisors back from committing assets to ESG/SRI products, as well as the “hot-button” issues that are motivating asset allocation decisions.
- How do advisors select an ESG/SRI fund or ETF? – Advisors weigh many metrics when selecting products – performance history, manager tenure, volatility, etc. Our research revealed which are the most and least important when it comes to selecting ESG/SRI products.
- How can asset managers better serve advisors? – Each quarter, we survey our advisor audience to determine the key issues that they face in their practice and those that they hear about most often from clients. Our research also shows how advisors prefer to learn about new investment products.
Additionally, Leigh Jedeikin, CFP and Vice President, and Daniel Ong, CFA, Senior Portfolio Manager and Vice President, will present Dimensional’s approach to incorporating ESG considerations in its strategies, including identifying the specific needs of ESG investors, the screening and weighting criteria used in managing the funds, and the metrics used to evaluate the impact on reducing greenhouse gas emissions.
How Advisors Select ESG/SRI Products
A large-scale survey of financial advisors has contradicted many of the long-held beliefs about ESG/SRI investing. The survey was conducted by Advisor Perspectives, a leading publisher of investment content for the financial services industry, as part of its research service.
Northern Trust: The Next Generation of ESG Investing
Peter Zymali, vice president and senior portfolio manager on the Global Equity Team, is responsible for the implementation of several quantitative equity strategies specializing in Quality ESG, Tax Advantaged Equity, and Quality Dividend Focus. He currently co-manages the Northern U.S. Quality ESG Fund (NUESX). In this interview, he discusses the latest trends is ESG investing and what to expect from the next generation of products.
Jeremy Siegel: The Market is Cheap on a Long-Term Basis
Jeremy Siegel is the Russell E. Palmer Professor of Finance at the Wharton School of the University of Pennsylvania. In this interview, he provides is forecast for stock and bond market performance and identifies the asset classes that are most attractively valued.
The Best Practices of Fast-Growing Advisory Firms
Lisa Salvi is a member of the Advisor Services leadership team and is responsible for Schwab’s Business Consulting and Education offer. In this interview, she discusses her research that identified the best practices of the fastest growing financial advisory firms.
Neil Hennessy: The Case for Japan and Energy Stocks
Neil J. Hennessy is portfolio manager and chief investment officer at Hennessy Funds, where he personally manages or co-manages six of the firm’s funds. In this interview, he discusses his outlook for the market and the economy, and why he thinks Japanese and energy stocks are exceptionally attractive.
Gundlach’s Warning to Corporate Bond Investors
Corporate bonds offer incredibly poor prospects under any scenario, according to Jeffrey Gundlach. If rates rise, prices will drop quickly because their durations are between 7 and 10 years. Falling rates are no better, he said, because they would be accompanied by a bear market in stocks with effects that would extend to corporate bonds.
Charitable Giving Opportunities Under the New Tax Law
Kim Laughton is president of Schwab Charitable, a non-profit, donor-advised fund provider established with the support of Charles Schwab & Co., Inc. to make charitable giving simpler and more tax-efficient for clients. In this interview, she discusses how advisors and their clients can take advantages of the changes in the new tax law.
Janet Yellen: I Don’t Understand Trump’s Trade Policies
A central focus of the Trump administration has been to reduce the U.S. trade deficit and to force our trading partners – mostly China – to eliminate what he claims to be unfair trade practices. Yet former Fed Chair Janet Yellen doesn’t understand what Trump is doing.
Niall Ferguson: The Destructive Power of Social Networks
The conventional wisdom promoted by the developers of social networks was that they would provide immense benefits to society through faster and broader connectivity. That view was shattered by Niall Ferguson, who called services like Facebook and Twitter “crazy ideas gone viral, with deeply negative implications.”
Guggenheim: Prepare for Recession in 2020
Brian Smedley is Senior Managing Director and Head of Macroeconomic and Investment Research at Guggenheim Partners. In this interview, he discusses his outlook for the economy and the capital markets, and how the economy is likely to run into a recession in the first half of 2020.
At Schwab IMPACT, stop by the Guggenheim booth (620), to meet Brian Smedley, and see him present Forecasting the Next Recession on Tuesday 10/30, at 11:15 AM ET, Showcase Stage C.
The Emerging Trends in ESG/SRI Investing
Anthony Eames is a vice president of Eaton Vance Management and director of responsible investment strategy. In this interview, he discusses the emerging trends in ESG/SRI products and how advisors can better serve their clients with responsible investing solutions.
Stop by to see us at booth 300 in the exhibit hall, where you’ll have a chance to talk with our product representatives.
Inside Litman Gregory’s High Income Alternatives Fund
Jeremy DeGroot, CFA, is a principal and the chief investment officer of Litman Gregory, a boutique wealth management firm based in the San Francisco Bay Area. In this interview, he discusses the Litman Gregory Masters High Income Alternatives Fund, which seeks to generate a high level of current income from diverse sources, consistent with the goal of capital preservation over time. It was launched on September 28, 2018.
Stop by booth #610 at Schwab IMPACT® to learn more about the Litman Gregory Masters High Income Alternatives Fund (MAHIX).
New Research: The Secrets HNW Investors Keep from Advisors
Mike Van Wyk is a senior market research manager at American Funds, part of Capital Group. His research has revealed several secrets that high-net worth investors keep from their advisors, and what advisors can do to reveal them.
Visit us in the exhibit hall at booth 463 to learn about our latest research on high net worth clients and discover ways to serve them better. American Funds Distributors, Inc.
A Top-Performing, Global ESG Fund
Di Zhou and Jim Gassman are co-managers of the Thornburg Better World International Fund (TBWIX), a global ESG fund. Since its inception on 9/30/15, through 9/30/18, the fund has earned an annualized rate of return of 10.96%, outperforming its benchmark, the MSCI ACWI Ex-US USD index, by 117 basis points. As of 9/30/18, the fund has been rated five stars by Morningstar.
Stop by to see us at booth #388 (near the Bear & Bull Pub) in the exhibit hall, where you’ll have a chance to talk with our product representatives and pick up our latest features in the Wall Street Transcript and Value Investor Insight.
Maycrest Capital – Outperforming the Market with Discipline and Patience
Richard Davis is the portfolio manager of the Maycrest Balanced Fund Strategy. Since its in inception on January 1, 2007 to August 31, 2018, the Maycrest Balanced Fund Strategy had an annualized return of 11.46% versus 8.36% for its benchmark, the S&P 500 Total Return Index, for an outperformance of 310 basis points. In this interview, Richard discusses his strategy and market outlook.
Gundlach: U.S. Economy and Stocks Could Be “Burnt Out”
Stimulative measures drive growth, and the U.S. economy and stock market have benefited from quantitative easing, lower rates, less regulation and tax cuts. But Jeffrey Gundlach admonished investors that too much stimulus can backfire.
Does Fake News Move the Stock Market?
One of the overriding questions from the 2016 presidential campaign is whether the onslaught of “fake news” altered the outcome of the election. That question is unanswerable, but we now know whether the financial equivalent of fake news altered stock prices.
Investing in Small-Cap-Growth Companies with a Long-Term View
John Barr manages the Needham Aggressive Growth Fund (NEAGX), which had an annualized return of 10.51% over the prior 15 years, versus 9.42% for the S&P 500, for an outperformance of 109 basis points. In this interview, he discusses the outlook for his fund.
A Look at Stralem’s “Participation with Protection” Strategy
Adam S. Abelson is the chief investment officer for the Stralem Funds. Since its inception on January 18, 2000, as of May 31, 2018, the Stralem Equity Fund (STEFX) had an annualized return of 5.78%, versus 5.51 % for its benchmark, the S&P 500 total-return index, for an outperformance of 27 basis points.
Proven Tactical Allocation Strategy Driven by Behavioral Crowds
C. Thomas Howard, PhD, is the CEO and chief investment officer at AthenaInvest, Inc., a Colorado-based investment manager. He is the co-manager of the Athena Global Tactical ETFs, a separately managed account. As of June 30, 2018, since its inception in September 2010, it has had an annualized return of 19.0%, outperforming its benchmark, the MSCI All Country World Index (ACWI) by 900 basis points. It is rated five-stars by Morningstar.
Behind Davis Advisors’ “Wall of Mistakes”
Danton G. Goei joined Davis Advisors in 1998. He is a portfolio manager for the Davis Large Cap, Global, and International Portfolios and a member of the research team for other portfolios. In this interview, he discusses those funds and why Davis maintains a “wall of mistakes” that immortalizes its investment blunders.
Lessons from the North Bay Fires
Californians live in fear of a devastating earthquake. But homeowners are far more likely to suffer a loss from a fire or even a sewer backup. The proper insurance protects against those losses. But, according to Brian Trouette, many homeowners lack sufficient coverage.
Inside a Top-Performing Multi-Asset Fund
Bob Browne is an executive vice president and chief investment officer for Northern Trust. He is a member of Northern Trust's operating group and management group. He is also co-portfolio manager of the Northern Global Tactical Asset Allocation Fund (BBALX), a top-performing, multi-asset fund.
Greg Valliere: Trump Could be Reelected
To the dismay of some and the delight of others, Donald Trump could win reelection in 2020, according to Greg Valliere. Trump, he said, has no strong primary challengers among Republicans, nor are there any Democrats likely to defeat him in the general election.
Hotchkis & Wiley: Exploiting the Inefficiencies in Small-Cap Stocks
Judd Peters is a portfolio manager of the Hotchkis & Wiley Small Cap Diversified Value Fund (HWVIX). Since its inception, the fund’s annualized return has been 9.45%, resulting in a 254 basis point outperformance versus Russell 2000 Value Index. The fund is rated five stars by Morningstar. I interviewed Judd last week.
Gundlach Defends Technical Analysis
Criticism of technical analysis ranges from bemused skepticism to claims of harebrained alchemy. Few investors as well-respected as Jeffrey Gundlach admit to using it. But yesterday, he explained why he relies on technical analysis under certain conditions.
A Strategic Income Fund that is Thriving in a Challenging Bond Market
Carl Kaufman is the co-president, co-chief executive officer and managing director, fixed income at Osterweis Capital Management. He is the lead portfolio manager for the Strategic Income Fund. That fund has had an annualized return of 6.18% since its inception on 8/30/02. Its performance exceeded the AGG by 278 basis points. I interviewed Carl last week.
First Eagle: “Passive Investing Could Prove to be an Expensive Mistake”
First Eagle’s Global Fund (SGENX) is its flagship fund, with over $55 billion in assets. As of April 30, 2018, since inception (1/1/79), the Fund has returned 13.15% annually, versus 9.67% for the MSCI World Index. Over the last 15 years, it has been in the top 2% of its peer group. I spoke with its managers, Matthew B. McLennan and Kimball Brooker, Jr., on May 1.
Harding Loevner and the Opportunity in High-Quality, Growth Stocks
Christopher Mack is a co-manager of the Harding Loevner Global Equity Fund (HLMGX). Over the 15-year period ending 4/20/18, its annual return has been 10.46%, outperforming its benchmark by 160 basis points. Over that 15-year period, it ranks in the 15th percentile of its Morningstar peer group. I interviewed Chris last week.