The Need for Private Credit
Private credit relies less on broad market trends and more on the strength of each specific investment. For individuals facing retirement, institutions looking to satisfy long-term pension liabilities or even private investors looking for alternative investments, it offers high current income, low correlations with public markets and lower default risks than yield spreads would imply.
The Case for Replication in Alternative Asset Classes
Advisors and allocators have struggled for years with a simple question:
How can my clients get the diversification benefits of leading hedge funds, but in a mutual fund or ETF with reasonable fees and less downside risk?
In this webinar, Andrew Beer will explain how hedge fund replication is a potential solution. Hedge fund replication, broadly defined, is a strategy that seeks to match or outperform hedge fund returns with lower fees, daily liquidity and less downside risk by mimicking the core exposures and trading strategies of high cost, illiquid hedge funds. The webinar will cover key educational topics, such as
- What are the different forms of hedge fund replication?
- What’s worked well and what hasn’t?
- Why do some replication-based strategies outperform actual hedge funds?
- Why should advisors consider a hedge fund replication-based mutual fund or ETF today?
The presenters will be available after the presentation to answer attendees' questions live.
Bitcoin Has Its Best Start to a Year Since 2012
Among the biggest contributors to the bitcoin rally is the hope that 2020 could finally see institutional investors move into the digital field en masse, prompted by growing client demand and more attractive ways to get exposure.
Forecasts or Nowcasts? What’s on the Horizon for the 2020s
Now is the season for forecasting as one decade turns into the next. Pundits and market prognosticators too often treat nowcasts as true market forecasts, which can be very dangerous for investors’ financial health. Our forecasts for the decade ahead rely on empirically driven quantitative models.
Repetition Can Be a Form of Change
Despite Sauron and Einstein’s failed attempts at unified theory, 2019 was simply the tenth year whereby interest rates were low and went lower, credit remained both cheap and plentiful, the economy was “good enough,” and those who can print money re-dedicated themselves to a willingness to print money. The logical conclusion to this set of events is to buy and hold U.S. equities. Drop the mic—again.
Decade of Living Dangerously, Part 2
In Part 1 of this forecast I described my relatively benign outlook for the next 12 months. The calm may last into 2021 and even beyond. But beneath the surface, pressure will still be increasing. It will grow slowly, almost imperceptibly, but eventually explode.
This is How You Can Beat the Market Without Fail
With this article I am going to present several ways that investors, especially retired investors, can beat the market without fail. However, what I will be presenting may not be what you are expecting, particularly if you have a narrow notion of what beating the market means.
The Us Continues to Look Attractive, Looking Backward and Forward
2019 was a triumphant year for the US large cap equity market, with the S&P500 index up 31% on a total return basis. The resolution of two major concerns in the year, namely the US Fed being too aggressive on rate hikes, and the US/China trade relationship hanging in a total impasse, drove the market higher, particularly in 1st and 4th quarter.
TIPS Outperform Treasurys in the Fourth Quarter and for all of 2019
TIPS outperformed in 19Q4, gaining 0.5% vs. a 1.4% decline for Treasuries. The average TIPS yield declined by 19 bps to 0.24%, while Treasury yields rose 13 bp to 1.87%. The average breakeven spread rose 32 bp to 163 bp.
Market Valuation, Inflation and Treasury Yields: Clues from the Past
Our monthly market valuation updates have long had the same conclusion: US stock indexes are significantly overvalued, which suggests cautious expectations on investment returns. In a "normal" market environment -- one with conventional business cycles, Federal Reserve policy, interest rates and inflation -- current valuation levels would be a serious concern.
But these are different times.
America Remains the Land of Opportunity. For Everything Else, There's Gold
I’m optimistic that the U.S. will stand as a beacon of freedom and opportunity in the 2020s and beyond, but with more and more younger Americans supporting socialism over capitalism, I believe it prudent to proceed with caution. That means making sure you’re holding some gold in your portfolio.
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.