Capital Growth

Politics today is in large part about pitting one group against another and convincing one side they've been treated unfairly. One of those groups is the younger generation of workers known as Millennials, who are supposedly up to their eyeballs in debt and lagging well behind prior generations.

The Fed's more hawkish stance at September’s FOMC meeting, rising upside inflation pressures, and near-term volatility drove Treasury yields higher at the end of the month.

The media and the economics profession are treating inflation like it is a friendly puppy dog. They think you can take it out of its pen and play with it for a while. The popular theory is that you bring it out in a severe dip in economic activity and when the economy gets back on its feet, you kindly ask inflation to crawl back into its pen like any good puppy dog would do.

Is the risk of a more significant correction over now that the expected 5% decline is complete? That was a hotly debated question after this past weekend’s newsletter supporting the idea of a reflexive rally into year-end.

We’re all familiar with inflation. But did you know there’s another form of inflation that’s just as corrosive on our purchasing power and yet is nearly impossible to measure? Read on to learn more.

Supply chains typically aren’t something the average person needs to think about too much. When they’re working, these high-tech, globalized networks of parts suppliers, assemblers, shippers, and distributors allow companies to make and move goods around the world so quickly and cheaply that it’s tempting to take them for granted.

Tomorrow is National Dictionary Day! Whether spoken or written, the power of words is undeniable. And as your Investment Strategy Team, we choose ours wisely, as to not create confusion when communicating our views.

Concerns about China’s slowing economy have focused on issues affecting property and manufacturing. But these are only part of the story. Investors seeking a fuller understanding of the risks and opportunities need to take a broader perspective.

Many mutual funds will distribute capital gains every year—no matter what the market does. As 2021 comes to a close, advisors can begin to prepare their clients for the impact of those distributions and take steps to minimize the tax bite going forward.

I was speaking with an industry friend and colleague the other day, and we got to riffing about music and retirement planning. A free and creative thinker, she said that when talking to clients about future retirement income, the sweet spot timing wise seems to be about five years before clients retire.

GMO Asset Allocation Team examines the fact that although every bubble is unique, classic common threads also run through everyone.

After solid performance in both July and August, the S&P 500 was considerably weaker in September. It was more than just passing weakness, however. The stock market looked much less the cocksure prize fighter than the contender who took a shot to the jaw that wobbled his knees.

September closed with a whimper (from folks hoping the seven-month stretch of positive performance months for the S&P 500 would make it to eight). The month also held true to the history of September being the worst month for performance on average since the index’s inception in 1928.

If you like investing in consistent predictable double-digit growth as I do, then you will love Fortune Brands...

Fed funds futures for 2022 and 2023 have broken out to new highs, likely on the back of rising inflation expectations. As things stand now, the market is looking for three hikes by the end of 2023, with the effective fed funds moving from 8bps today to 85bps.

The strong economic and market trends of the first half of 2021 wavered during the third quarter. The coronavirus delta variant caught up with the US at the height of the summer, just as vaccinations slowed and concerns grew that inflation might flare and persist.

Several key technical indicators show that the recent stock market weakness may be much more concerning than most investors believe.

No. We are not repeating the “Roaring 20’s” analog. Ben Carlson had a recent post asking if the “Roaring 20’s” are already here?

Looking ahead, new sources of inflation may continue to arise. Unless the mounting pressures push inflation to significantly higher levels that would provoke central banks into aggressive tightening, the impact on global stock markets may be a positive.

The rise of environmental, social and governance (ESG) investing is nothing short of extraordinary, according to Yu Meng, Chair of Asia Pacific at Franklin Templeton. As we are constantly reminded by extreme climate change events, he says urgent actions are required from all of parts of society and the economy, including the financial markets.

Need some new ideas about how to attract new clients or get greater share of wallet from ones you already have? Try a few of these on for size.

Given a potential inflationary environment and sell-offs in Chinese equities, we have taken great care to trim weightings in China, and we have made adjustments to reduce holdings with extended valuations and increase holdings that are well-suited to transmit pricing power or have more attractive valuations.

Investors need to understand the differences between Chinese capitalism and Western capitalism in order to properly assess the opportunities in China. Meanwhile, norms in India more closely resemble those in the United States— but India has dramatically larger headroom for growth.

Given the demise of pension plans, and the potential for annuities to serve as a core source of retirement income certainty, I composed the following poem to mix a bit of levity with a purposeful message.

The fact we have the lowest interest rates in 5000-years is indicative of the economic challenges we face.

US stocks, as seen by the S&P 500, ended the third quarter unchanged, having shed over 4% in September as fears over the debt ceiling and the Fed’s options erased the summer’s progress. Certainly, the market environment has changed a lot over the past 18 months. Valuations are up, economic data is varied, and the prospects of potential Fed action are growing.

Dividend Contenders are high-quality dividend growth stocks that have increased their dividends for 10 up to 24 years. Therefore, they offer investors the opportunity to receive a growing dividend income stream to help keep up with inflation.

Bitcoin topped $56,000 on Friday for the first time since May as a number of positive crypto developments galvanized investors in the month of “Uptober.”

While unlikely to occur, a default on U.S. debt would have serious impacts for global financial markets. Learn more.

This gem of a mid-cap dividend growth stock has also been a powerful growth stock as well. The company started paying its first dividend in 2015 and has grown at an average rate exceeding 100% per year. Although I doubt it will continue growing its dividend at that rate, I do believe it will continue growing its dividend at a very high rate going forward.

The next decade will see an urgent and widespread boom in investments in innovation across all economic sectors, according to Stephen Dover and Kim Catechis of the Franklin Templeton Investment Institute. They say this technology wave will be experienced in both private and public sectors, and in every facet of investment portfolios for years to come.

With potential tax increases on the horizon, advisors can take steps now to minimize the impact of any changes in tax policy.

As we sit atop our prosperous peak, admiring the views of the fastest economic growth since 1984, the best start to a bull market and the record-breaking quarter of earnings growth, it’s wise to remember that not too long ago we began our uphill journey from the depths of the COVID-19 ravine. Often, the best views come after the hardest climbs.

In business as in life, a healthy sense of self-awareness is often the first step to meaningful change. Companies that are conscious of their flaws and eager to address the root problems offer a source of solid return potential for equity investors who identify the turnaround stories early.

Robust engagement with company management can be key in sparking catalysts that unlock shareholder value and potentially lead to better returns over the longer term, according to Franklin Mutual Series Environmental, Social and Governance (ESG) Ambassador Tim Rankin.

Since the Fed’s September FOMC meeting and official taper announcement, we are witnessing what appears to potentially be a shift back into the reflation trade.