The GMO Asset Allocation Team has released its latest 7-Year Asset Class Forecasts through January 2021.
A solution for the challenge of moving wirehouse clients with active securities-based loans.
As COVID-19 vaccines roll out and resrictions lift, a US economic rebound could lead to tighter Federal Reserve policy and higher yields. Municipal bond investors may worry about how rising yields could hurt their portfolios.
A brief monthly update on what's happening in the municipal bond market.
I don’t say this often, but Fed Chairman Jerome Powell is wrong. Regular readers of our investor letters and other publications will recall that we regularly cite Chairman Powell as doing the best he can with the levers he has while arguing correctly for others to do their part.
Relative value currently favors floating-rate loans over high-yield bonds.
The 4th quarter of 2020 began with tremendous anxiety and divisiveness around the Presidential election. Investment markets reflected that anxiety.
We thought this graph might be of interest to you. It highlights the historic changes of leadership between growth and value stocks held in the MSCI World Index.
The Mortgage and Structured Finance Sector Team discusses key themes in the securitized market in 2021.
The Loomis Sayles Municipal Sector Team discusses key themes that may impact the municipal market in 2021.
GMO 7-Year Asset Class Forecasts: Value vs. growth is coming off its worst year ever.
Our outlook for 2021 is formed by the need to get away from the crowd and to expect some very stormy weather in the U.S. stock market. We are not afraid of drowning. Therefore, we will review the circumstances at the bottom of the market in 2009 with today’s market to see where the crowd is and where we need to go to avoid the coming storm.
The Loomis Sayles Investment Grade Sector Team answers three questions on their outlook for 2021.
Loomis Sayles' Global Credit Sector Team shares their outlook on key themes in the euro credit space.
The Loomis Sayles Emerging Markets Debt Sector Team shares their views on corporate spreads, foreign exchange and leverage in 2021.
On January 11, 2021, the Executive Order 13959 (“E.O.”) issued by Donald Trump designed to protect U.S. investors from financing Communist Chinese Military Companies will go into effect. In this Q&A, Matthews Asia addresses key questions on its potential impact for investors.
Loomis Sayles' high yield sector team discusses downgrades, defaults and value in the high yield market in 2021.
Now that 2020 has drawn to a close, I’m revisiting my most popular investment posts of the year, based on views. It was a truly historic 12 months, to say the least, but I won’t be covering everything that happened.
How can credit markets help active investors achieve their goals in the present low yield environment? Here are 5 ideas.
Fed officials project interest rates will be near zero through 2023, as the distribution of the COVID vaccine appears to provide light for the economy in 2021.
December 21st marked the first trading day with Tesla TSLA being included in the S&P 500 Index SPX, as it replaced Apartment Investment & Management Co. AIV. At a market capitalization of over $624 billion, TSLA is the largest company to ever join the S&P 500.
While real return forecasts for broader markets are not particularly promising, there are some pockets that look more attractive than others. As GMO put it in the firm's recent Quarterly Letter, "Value is cheap, no matter where you look."
The U.S. stock market surged in November, erasing October’s losses even amid a rising number of coronavirus infections. Propelled by progress toward potential coronavirus vaccines and hopes for a relatively smooth transition to power for president-elect Joe Biden, major U.S. equity indices closed the month with double-digit gains.
At various points previously, we have discussed the debate regarding active vs. passive management. Proponents of passive management insist that active managers cannot consistently outperform a passive benchmark and therefore investors are better off to invest in lower cost index funds.
More than most years, it’s hard to look ahead to the next year, to 2021, without looking back at 2020. A global pandemic, a massive economic collapse, a bear market, a surprisingly sharp reversal, a hotly contested election where passions ran high, the impact of lockdowns—it was an unusual year of extraordinary challenges.
We highlight the reasons behind our pro-risk stance in our 2021 outlook in the weekly commentary.
Recently we discussed the “rotation trade” and examined the performance of the S&P 500 sectors during shifts from growth to value. Another facet of the rotation trade has been a shift from large cap to small. Today we wanted to examine sector performance in another facet of this rotation – a shift from large cap to small cap.
As we arrived at the beginning of November, much of the investment community had heightened concerns about the prospects for continued domestic equity growth during what was assumed to be a volatile market environment with the potential for a contested US presidential election.
With yields near zero, many investors may question the value of fixed income within a portfolio. Western Asset’s Head of Product Management, Doug Hulsey, joins our Head of Equities, Stephen Dover, to discuss fixed income investing with an active-management lens. He makes a case for the asset class for investors in light of market uncertainties and outlines where he sees opportunities today.
Despite the COVID-19 pandemic, emerging markets have shown a continued appetite for structural reforms that could lay the foundation for lasting economic recoveries, according to our Emerging Markets Equity team.
In the wake of the COVID-19 pandemic and the social justice movement, investors are paying much more attention to the social element of ESG -- specifically, how companies treat their employees, respond to political issues, and philanthropic efforts.
The roller-coaster ride of 2020 still has a few twists and turns to navigate. But the massive policy response to the COVID-19 pandemic brought a quick, though incomplete, recovery. With volatility expected to continue, where can investors look for opportunities?
2020 has proven a challenging year for numerous businesses and individuals, Grey Owl Capital Management included. While most domestic stock market indices have fully recovered from the February and March Covid sell-off, many of our accounts are still down slightly on a year-to-date basis through the end of September.
With the economy slowing in September, the battle for a quick rebound may be far from over.
We believe this is the best opportunity set we’ve seen since 1999 in terms of looking as different as possible from a traditional benchmarked portfolio.
When many fixed income investors think about the November US election, they tend to focus on how the presidential and congressional race outcomes could affect national policies. However, our municipal bond team delves into state and local government elections, too. Here, they share their analysis of how election outcomes at all three levels of government could affect muni bonds.
Investors should consider many angles when evaluating what active managers can offer through a global crisis and an indefinite period of uncertainty.
Emerging markets have had different approaches to coping with COVID-19 and are at different stages of recovery. Our emerging markets equity team examines trends, news and data shaping emerging markets in the third quarter, and shares its latest outlook.
There are many benefits of using a rules-based approach using Relative Strength (RS), one of the main cornerstones of our research. Relative Strength, also known as Momentum, is a time-tested investment factor that permeates our work, allowing us to identify where both strength and weakness exists across securities, sectors, and asset classes using just one objective input - price.
Domestic equity markets have certainly shown a significant amount of movement thus far through 2020, with the S&P 500 Index SPX undergoing its swiftest decline from all-time highs in March, only to rally over the next few months to print new all-time highs at the beginning of September.
We continue to experience an unprecedented market environment. We were able to again outperform in the third quarter, aided by the significant repositioning we had done in portfolios amidst the sell-off in March. However, we are wary of the risks to the market rally, including elevated valuation multiples...
The S&P 500 SPX and Nasdaq NASD have recently hit a series of fresh all-time highs and the Dow DJIA now sits less than 2% off of its all-time high which has many people wondering if the market is overbought and due for a correction.
With recently elevated volatility levels some investors are afraid to hold overnight as it’s much harder or not possible to make trades. While it seems intuitive to take risk off the table when there’s not much you can do if things head south, it takes you out of the market when most of the returns are harnessed.
Join us for a series of virtual sessions during the AP Thought Leader Summit 2020, October 6-7, 2020. This FREE event is for financial advisors to learn and earn CE credits for sessions from the industry's most influential thought leaders to help grow and manage their practice. Register here!
Insights into how five COVID-19-impacted sectors are performing—and what the future may hold.
Impact investing in public equities can provide exposure to disruptive innovation and structural growth opportunities that are often overlooked.
Recent history suggests that low—and even negative—yields don’t eliminate the offset to risk assets provided by government bonds.