The numerous proposals around tax policy in the upcoming budget debates mean it’s an opportune time to discuss tax-smart strategies with your clients.
We don’t disagree the S&P 500 could well hit a target of 5000. But, let us be honest about the reasons why...
On September 3, 2021, Prime Minister Yoshihide Suga announced his decision to not run in the upcoming ruling Liberal Democratic Party leadership race later this month. Portfolio Manager Shuntaro Takeuchi provides his thoughts on the current political environment and outlook for Japanese equities.
Month-over-month nominal sales in August was up 0.71% and up 15.1% YoY. Real Retail Sales, calculated with the seasonally adjusted Consumer Price Index, increased by 0.43% and was up 9.4% YoY.
The active/passive debate frequently focuses on equities, where active approaches have historically underperformed passive strategies. The story is decidedly different in the world of fixed income, where active managers can more easily exploit mispricing and other inefficiencies.
We’ve all experienced shortages of various goods and/or services in the last year or so of the coronavirus pandemic. In recent decades, American manufacturers have increasingly outsourced the production of goods we consume to foreign countries where they can often be produced cheaper.
Amid the deluge of headlines in the past few days about congressional proposals to boost taxes on companies and the wealthy is one that would affect regular investors -- and potentially alter the entire U.S. fund landscape.
With real rates trading below zero right now, many yield-starved investors are being forced into riskier and riskier assets, including high-yield junk bonds. But even these are no longer offering a positive real return, what with inflation at multiyear highs.
There are several “paradigm shifts” impacting markets today, according to Templeton Global Macro CIO Michael Hasenstab. He outlines how central banks might approach tapering of pandemic-driven asset purchases, and the potential investment risks and opportunities he sees.
If I was still a wealth advisor, I’d consider another career.
In the U.S., a four-year degree is increasingly a “talisman” against deaths related to suicide and economic hardship, according to a new research paper that offers a stark verdict on the current economy.
Among the most persistent questions I hear is why we don’t just adapt to the reality that the Federal Reserve will never again “allow” the market to experience a serious decline. The problem with this view is that it rests on the premise that Federal Reserve policy supports the market in a clear-cut and mechanical way, when its effectiveness actually relies on the speculative psychology of investors.
Vivek Ramaswamy’s new book, Woke, Inc.: Inside Corporate America’s Social Justice Scam, is addressed to what he believes are the evils of corporate America adopting a ”woke” posture and taking it upon itself to enforce woke-ness.
Value has its day in the sun. But are investors learning the right lessons from it?
When American Campus Communities Inc. announced the signing of a $1 billion sustainability-linked credit line in May, its executives decided to take a victory lap.
Companies that have gone public in the last two decades have had few minorities on their boards, a new report finds.
Take a look at real (inflation-adjusted) charts of the S&P 500, Dow 30, and Nasdaq Composite since 2000. We've updated this through the August 31, 2021 close.
On August 24 and 25, we held our second annual Thought Leader Summit. Here is a short summary of each session and a link to watch the replay for CE credits.
We are in an odd situation where it’s unclear if labor is scarce or abundant. Many employers can’t seem to find enough qualified workers, but the August jobs report said 8.4 million are unemployed and millions more underemployed.
Q&A with Kathlyn Collins: Understanding the context of the recent regulatory announcements through an ESG lens.
In March, a Chinese military satellite appeared to spontaneously disintegrate in orbit, leaving a trail of debris high above the Earth.
Wall Street’s vow last year to fight racism kicked off a parade of pledges, few more specific than plans to support historically Black colleges and universities.
It was Sunday night on Aug. 15, 1971, and many Americans were watching television — the most popular show that evening being the Western series “Bonanza.”
A little more than a week ago financial markets appeared on the edge of a precipice, about to be overwhelmed by the delta variant’s insidious spread and the plateauing economic recovery.
I’m finding that expressing an opinion or telling a joke in public company these days is most dangerous to one’s reputation, not that my past dustup with a Laguna Beach neighbor over Gilligan’s Island or planting a stink bomb going out the door in my ex-wife’s toilet haven’t sealed the deal for me already.
Based in Brussels, Belgium, with offices in Luxembourg and Singapore, Sofina is a family-run investment company with equity holdings in Europe, the U.S. and Asia.
Defensive stocks are often misunderstood. In recent years, even when they have delivered strong and steady earnings, returns have disappointed.
The SEC’s view of investor trust rejects the underlying assumptions that financial advisors suffer from poor trust and that this lack of trust is a problem.
New research shows that the ESG portions of mutual funds underperformed the remainder of the funds and did so with higher risk. But the magnitude of those differences was small.
Personal Income (excluding Transfer Receipts) in July rose 0.7% and is up 8.2% year-over-year. However, when adjusted for inflation using the BEA's PCE Price Index, Real Personal Income (excluding Transfer Receipts) MoM was up 0.23%. The real number is up 3.8% year-over-year.
During a trying time for the world in 1939, Winston Churchill famously described the largest country in the world and soon-to-be second superpower, the Soviet Union, as “a riddle wrapped in a mystery inside an enigma.”
Franklin Templeton’s 2021 US Retirement Income Strategies and Expectations survey revealed financial-related concerns across generations of Americans including health care, inadequate savings, and debt management—and the need for a personalized approach to retirement planning.
Through the first six months of 2021, gunfire killed nearly 10,000 people in the United States, about 54 lives lost per day, according to data from the Gun Violence Archive, a nonprofit research organization.
This is not a grievance session; no negativity or "canceling" is allowed. The goal is to nurture and provide specific action steps that people can take. It won't just be conceptual; the panel will provide concrete examples of ways that you can improve diversity within your practice by improving accessibility for clients, prospects, staff, and vendors. We will hear directly from a panel of individuals from the diverse populations that are the focus of our talk: Andrew Komarow, Christopher Woods, and Terron Tidwell and moderated by Sara Grillo.
Last month, Senate Democrats released a $3.5 billion budget package that they hope to pass alongside a $1.2 trillion infrastructure bill later this summer.
The filing cabinet gave offices a sense of control and granular access by making information visually identifiable. The pandemic and working from home proved how this way of sourcing, accessing, and presenting information is no longer viable.
Narratives get more energy these days because of social media and cable TV, but they've always existed.
Mankind has constantly reimagined what can be wagered on and where that betting takes place. We are in the early stages of one such reimagining – betting online.
The predominant approach to classifying securities geographically is based on domicile, the legal home of a company. But that approach is losing its relevance. Investors should consider foreign revenue to understand the international risks of investments and portfolios.
So many headlines right now are instilling FUD in investors’ minds, which stands for Fear, Uncertainty and Doubt—from the Afghanistan news to fears on cryptocurrency and the delta variant disrupting travel plans. But don’t fall for it.
Going forward, we believe that the traditional international allocation and global emerging markets deserves a rethink.
New research shows that Western countries, which have tighter regulations, have forced companies to move their pollution-related activities to other domiciles. That can be good news for ESG based investors, who reward those companies with a lower cost of capital.
Demographers now project that China, with its record large population of nearly 1.4 billion people, will overtake the US as the world’s largest economy by 2028, if not even sooner, a few years earlier than previously predicted, based on the latest GDP figures for 2020.
Investing with the intent to do well while doing good is gaining traction.
A new report from the United Nations-backed Intergovernmental Panel on Climate Change warns that the planet will warm by 1.5 degrees Celsius in the next two decades without drastic moves to eliminate greenhouse gas pollution.
Over the long course of the Covid-19 pandemic, one comforting fact has been that children have been at very little risk from the virus. Unfortunately, that doesn’t mean they haven’t suffered.
In an ideal world, analysts and investors wouldn't have to spend much time, perhaps none at all, trying to manage around changes in government policy.
As the summer progresses, US vacationers are out in force while the European and Asian holiday scene remains relatively subdued.
Hidden Risks: Can Investors Trust China?
In 1905, the first gas pump appeared in St. Louis, Missouri, to meet the fueling demands of a rapidly growing number of motorists.
For almost three decades the acronym TAMP, for turnkey asset management program, has stuck. It’s time to kill it.
The unpredictable nature of politics and government action within individual countries can make a case for disaggregating international exposure, according to our Dina Ting.
Tesla Inc. has paid more than $1 million to a Black former employee who won a ruling that the company failed to stop his supervisors from calling him the “N-word” at the electric-car maker’s northern California plant.
Within the space of just half a year, US President Joe Biden has completed a necessary economic-policy regime shift that started chaotically under his predecessor.
Community is the most important resource in your toolbox, especially for female financial advisors.
A private drugmaker aborted plans to buy back its own SPAC at a hefty premium, sending shares of Immunovant Inc. plunging to an all-time low.
For advisors looking to add diversification and growth potential to client portfolios, life settlements are a compelling asset class.
Frank Pape is the senior director, portfolio consulting for Russell Investments’ advisor and intermediary solutions business. In this interview, he discusses the latest research on how advisors can maximize the after-tax income for their clients.
I am worried the Fed will either let inflation become psychologically entrenched, or wait too long to stop it and spark crisis with a too-hasty response, but there are other possibilities. None are especially good.
Senior Global Equity Opportunities Analyst Julian Wellesley discusses the role of banking in racial wealth inequality in the US and the steps banks could take toward financial inclusion.
My partner and I have worked together for a long time. We are polar opposites, but it is like a marriage. We want to name a third partner, one of our existing financial advisors.
The great philosopher, John Locke, brilliantly captured the way the world works.
Here are a few tips for finding – and keeping – great advisors during a talent shortage.
Over the next 10 years, the global automotive industry is expected to face one of the most significant changes in its history – the replacement of internal combustion engine (ICE) vehicles with electric vehicles (EVs).
Frontier markets are popular to investors that seek higher returns, and Central Asia’s Kazakhstan is regarded with particular interest.
The latest clean energy ETFs to hit the market are looking to promote companies doing the most to avoid carbon emissions.
The only feasible explanation for the 10x run-up in Tesla’s stock price was a spreading narrative that it is more than a car company.
Delta has the potential to alter the path of recovery; central banks are rising to face heavy challenges; and U.S. states have survived a major stress event.
Xi has been trying to balance economic freedom and authoritarian control and it’s not working like it used to. Today we’ll review some recent events that illustrate where Xi went wrong.
Choosing a fund or ETF with a positive ESG profile is fraught with risk. New research shows how carefully investors must weigh considerations such as screening criteria, factor exposures, industry concentration and expenses.
CIO Robert Horrocks, PhD, discusses the short and longer-term prospects for Asia and EM in a rising inflationary environment.
As summer hits its stride, here are some musings about municipal bond performance to mull over as you unwind at the beach or on the couch (no judging!).
Heading into the second half of the year, pandemic concerns are not completely in the rear-view mirror.
As the global economy continued to reopen and the recovery gained speed, markets reached new highs.
Be forewarned – we are going to empty the quote bin this quarter.
For years, David Horowitz at Agilon Capital was a rare breed in the bond market: a quant in a notoriously old-school business where prices were a call rather than a click away.
By siding with major food corporations over six Malian former child slaves who were seeking compensation under US tort laws, the US Supreme Court has sent a dangerous message.
Central bankers are engaged in the most sweeping rethink of their role in decades, spurred by the success of tight collaboration with governments in countering the pandemic crisis and a new political reality of increased demands on monetary policy makers.
More than 75% of the West is in an extreme or exceptional drought, with over 58 million people living in a drought area—and expectations are that it will get worse.
As the world convalesced from the pandemic, stocks advanced in the second quarter and earnings rebounded across sectors.
In Part-2 of “Capitalism” does not equal “Corporatism,” we delve into why bailouts support corporatism and how to fix the system.
Bond investors are worried, and who can blame them?
Rising inequality is but one symptom that the U.S. has swung to a society that is characterized by a disproportionate focus on individuals over the collective good. A national priority, similar to the Apollo moon project of the 1960s, is needed to reverse that trend, and there is an obvious candidate.
Rather than my usual economic/investment letter, this week I want to take a more philosophical tack, looking at some of the challenges we face as a country and culture, beginning with the freedom of the press but then turning to technology and even wealth disparity. We will have to consider what freedom of speech meant in the 1800s, what it meant at the turn of this last century, and what it means today in a world of social media.
As predicted by theory, increased investor demand has resulted in higher returns for public stocks with good environmental, social and governance (ESG) characteristics. Unfortunately, that means future returns will be lower for those stocks. New research confirms that this is also the case for private “impact” investments.
Let me begin with a confession. Govcoin is a made-up name.
Constructing sustainable and risk-adjusted portfolios in a global context
Wall Street is once again in the midst of a “money heist” from naive investors.
U.S. home prices jumped the most in more than 30 years in April.
I generally try to avoid political commentaries in Forecasts & Trends, although I never hesitate to make it clear I am a conservative on most issues.
Diversity & Inclusion
Legislating Tax Changes: The Rubber Hits the Road
The numerous proposals around tax policy in the upcoming budget debates mean it’s an opportune time to discuss tax-smart strategies with your clients.
Wall Street Sets Its Sights On S&P 5000
We don’t disagree the S&P 500 could well hit a target of 5000. But, let us be honest about the reasons why...
Japan Elections and Market Update
On September 3, 2021, Prime Minister Yoshihide Suga announced his decision to not run in the upcoming ruling Liberal Democratic Party leadership race later this month. Portfolio Manager Shuntaro Takeuchi provides his thoughts on the current political environment and outlook for Japanese equities.
The Big Four: August Real Retail Sales Up 0.7%
Month-over-month nominal sales in August was up 0.71% and up 15.1% YoY. Real Retail Sales, calculated with the seasonally adjusted Consumer Price Index, increased by 0.43% and was up 9.4% YoY.
Municipal Bonds: The Advantages of Active Management
The active/passive debate frequently focuses on equities, where active approaches have historically underperformed passive strategies. The story is decidedly different in the world of fixed income, where active managers can more easily exploit mispricing and other inefficiencies.
The Renaissance In U.S. Manufacturing & Productivity
We’ve all experienced shortages of various goods and/or services in the last year or so of the coronavirus pandemic. In recent decades, American manufacturers have increasingly outsourced the production of goods we consume to foreign countries where they can often be produced cheaper.
ETF Industry Risks Losing Key Tax Edge as Democrat Whets Knife
Amid the deluge of headlines in the past few days about congressional proposals to boost taxes on companies and the wealthy is one that would affect regular investors -- and potentially alter the entire U.S. fund landscape.
Where's the Yield? Don't Look to Crypto Lending, at Least Not Yet
With real rates trading below zero right now, many yield-starved investors are being forced into riskier and riskier assets, including high-yield junk bonds. But even these are no longer offering a positive real return, what with inflation at multiyear highs.
Paradigm Shifts Impacting the Investment Landscape: China, Inflation and Monetary Policy
There are several “paradigm shifts” impacting markets today, according to Templeton Global Macro CIO Michael Hasenstab. He outlines how central banks might approach tapering of pandemic-driven asset purchases, and the potential investment risks and opportunities he sees.
Explore a Diverse Life – Including a Career Change
If I was still a wealth advisor, I’d consider another career.
‘Deaths of Despair’ Worsen Among Americans Lacking College Degrees
In the U.S., a four-year degree is increasingly a “talisman” against deaths related to suicide and economic hardship, according to a new research paper that offers a stark verdict on the current economy.
Maladaptive Beliefs
Among the most persistent questions I hear is why we don’t just adapt to the reality that the Federal Reserve will never again “allow” the market to experience a serious decline. The problem with this view is that it rests on the premise that Federal Reserve policy supports the market in a clear-cut and mechanical way, when its effectiveness actually relies on the speculative psychology of investors.
How Bad is “Woke” Capitalism?
Vivek Ramaswamy’s new book, Woke, Inc.: Inside Corporate America’s Social Justice Scam, is addressed to what he believes are the evils of corporate America adopting a ”woke” posture and taking it upon itself to enforce woke-ness.
Fundamentals of RAE: Deep Value, Bubble Stocks, and Market Inefficiency
Value has its day in the sun. But are investors learning the right lessons from it?
Wall Street’s ESG Loans Charge Corporate America Little for Missed Goals
When American Campus Communities Inc. announced the signing of a $1 billion sustainability-linked credit line in May, its executives decided to take a victory lap.
Private Equity-Backed Firms Shut Out Black Directors, Data Show
Companies that have gone public in the last two decades have had few minorities on their boards, a new report finds.
The S&P 500, Dow and Nasdaq Since Their 2000 Highs
Take a look at real (inflation-adjusted) charts of the S&P 500, Dow 30, and Nasdaq Composite since 2000. We've updated this through the August 31, 2021 close.
AP Thought Leader Summit Session Summaries
On August 24 and 25, we held our second annual Thought Leader Summit. Here is a short summary of each session and a link to watch the replay for CE credits.
Human Capital Losses
We are in an odd situation where it’s unclear if labor is scarce or abundant. Many employers can’t seem to find enough qualified workers, but the August jobs report said 8.4 million are unemployed and millions more underemployed.
China’s Regulatory Announcements Part III
Q&A with Kathlyn Collins: Understanding the context of the recent regulatory announcements through an ESG lens.
Space Junk, Long Feared, Is Now an Imminent Threat: Adam Minter
In March, a Chinese military satellite appeared to spontaneously disintegrate in orbit, leaving a trail of debris high above the Earth.
Wall Street Moving Slowly on Road to Recruit From Black Colleges
Wall Street’s vow last year to fight racism kicked off a parade of pledges, few more specific than plans to support historically Black colleges and universities.
50 Years After Going Off Gold, the Dollar Must Go for Crypto: Niall Ferguson
It was Sunday night on Aug. 15, 1971, and many Americans were watching television — the most popular show that evening being the Western series “Bonanza.”
Should I Sell When the Stock Market Wobbles? Some Advice: Stuart Trow
A little more than a week ago financial markets appeared on the edge of a precipice, about to be overwhelmed by the delta variant’s insidious spread and the plateauing economic recovery.
August: Investment Outlook
I’m finding that expressing an opinion or telling a joke in public company these days is most dangerous to one’s reputation, not that my past dustup with a Laguna Beach neighbor over Gilligan’s Island or planting a stink bomb going out the door in my ex-wife’s toilet haven’t sealed the deal for me already.
Spotlight Sofina: Pioneers in Family-Led Corporate Innovation
Based in Brussels, Belgium, with offices in Luxembourg and Singapore, Sofina is a family-run investment company with equity holdings in Europe, the U.S. and Asia.
Finding Defensive Stocks Ripe for Recovery
Defensive stocks are often misunderstood. In recent years, even when they have delivered strong and steady earnings, returns have disappointed.
Trust in Advisors is Stuck at 2009 Levels
The SEC’s view of investor trust rejects the underlying assumptions that financial advisors suffer from poor trust and that this lack of trust is a problem.
ESG Mutual Funds Have Underperformed – But Just Barely
New research shows that the ESG portions of mutual funds underperformed the remainder of the funds and did so with higher risk. But the magnitude of those differences was small.
The Big Four: Real Personal Income in July
Personal Income (excluding Transfer Receipts) in July rose 0.7% and is up 8.2% year-over-year. However, when adjusted for inflation using the BEA's PCE Price Index, Real Personal Income (excluding Transfer Receipts) MoM was up 0.23%. The real number is up 3.8% year-over-year.
Being Vested in Your Investing
During a trying time for the world in 1939, Winston Churchill famously described the largest country in the world and soon-to-be second superpower, the Soviet Union, as “a riddle wrapped in a mystery inside an enigma.”
Survey Shows Importance of Personalized Approach to Retirement Planning
Franklin Templeton’s 2021 US Retirement Income Strategies and Expectations survey revealed financial-related concerns across generations of Americans including health care, inadequate savings, and debt management—and the need for a personalized approach to retirement planning.
Gun Violence Hit Record In 2020 & 2021 Is Even Worse
Through the first six months of 2021, gunfire killed nearly 10,000 people in the United States, about 54 lives lost per day, according to data from the Gun Violence Archive, a nonprofit research organization.
Nurturing Diversity in Financial Services
This is not a grievance session; no negativity or "canceling" is allowed. The goal is to nurture and provide specific action steps that people can take. It won't just be conceptual; the panel will provide concrete examples of ways that you can improve diversity within your practice by improving accessibility for clients, prospects, staff, and vendors. We will hear directly from a panel of individuals from the diverse populations that are the focus of our talk: Andrew Komarow, Christopher Woods, and Terron Tidwell and moderated by Sara Grillo.
We Can’t Educate Our Way to Racial Economic Equity: Michael Collins
Last month, Senate Democrats released a $3.5 billion budget package that they hope to pass alongside a $1.2 trillion infrastructure bill later this summer.
Time to Sell the Filing Cabinet – Digitalisation is Here
The filing cabinet gave offices a sense of control and granular access by making information visually identifiable. The pandemic and working from home proved how this way of sourcing, accessing, and presenting information is no longer viable.
Fed Being Tempted Into SIN
Narratives get more energy these days because of social media and cable TV, but they've always existed.
The Era of Online Gambling Has Arrived
Mankind has constantly reimagined what can be wagered on and where that betting takes place. We are in the early stages of one such reimagining – betting online.
The Traditional Approach to International Diversification is Losing Its Relevance
The predominant approach to classifying securities geographically is based on domicile, the legal home of a company. But that approach is losing its relevance. Investors should consider foreign revenue to understand the international risks of investments and portfolios.
Don’t Fall for FUD: Fear, Uncertainty and Doubt
So many headlines right now are instilling FUD in investors’ minds, which stands for Fear, Uncertainty and Doubt—from the Afghanistan news to fears on cryptocurrency and the delta variant disrupting travel plans. But don’t fall for it.
Optimizing International Allocations with Asia
Going forward, we believe that the traditional international allocation and global emerging markets deserves a rethink.
Pollution is Moving to Less-Regulated Countries
New research shows that Western countries, which have tighter regulations, have forced companies to move their pollution-related activities to other domiciles. That can be good news for ESG based investors, who reward those companies with a lower cost of capital.
China On-Track To Overtake US GDP – But Not 2021 Olympics
Demographers now project that China, with its record large population of nearly 1.4 billion people, will overtake the US as the world’s largest economy by 2028, if not even sooner, a few years earlier than previously predicted, based on the latest GDP figures for 2020.
How Impact Seeks To Enhance The Risk-Return Equation
Investing with the intent to do well while doing good is gaining traction.
The Climate Emergency Is About Numbers. Here’s How to Fight It.: Bloomberg Opinion
A new report from the United Nations-backed Intergovernmental Panel on Climate Change warns that the planet will warm by 1.5 degrees Celsius in the next two decades without drastic moves to eliminate greenhouse gas pollution.
Opening Schools Should Be Priority No. 1
Over the long course of the Covid-19 pandemic, one comforting fact has been that children have been at very little risk from the virus. Unfortunately, that doesn’t mean they haven’t suffered.
Projecting Government
In an ideal world, analysts and investors wouldn't have to spend much time, perhaps none at all, trying to manage around changes in government policy.
Vacation Variants: Travel Indicators Mark Different Recovery Paths
As the summer progresses, US vacationers are out in force while the European and Asian holiday scene remains relatively subdued.
China – What is Everyone Missing?
Hidden Risks: Can Investors Trust China?
How to Participate in the Coming Electric Vehicle (EV) Boom
In 1905, the first gas pump appeared in St. Louis, Missouri, to meet the fueling demands of a rapidly growing number of motorists.
Let’s Bury the Term “TAMP”
For almost three decades the acronym TAMP, for turnkey asset management program, has stuck. It’s time to kill it.
The Certainty of Change: Evolution of Investor Access to China
The unpredictable nature of politics and government action within individual countries can make a case for disaggregating international exposure, according to our Dina Ting.
Ex-Tesla Employee Called Racial Slur Wins Rare $1 Million Award
Tesla Inc. has paid more than $1 million to a Black former employee who won a ruling that the company failed to stop his supervisors from calling him the “N-word” at the electric-car maker’s northern California plant.
Biden's Neo-Populist Economic Doctrine
Within the space of just half a year, US President Joe Biden has completed a necessary economic-policy regime shift that started chaotically under his predecessor.
Don’t Underestimate the Importance of Community
Community is the most important resource in your toolbox, especially for female financial advisors.
SPAC-on-SPAC Deal Falls Apart, and So Does Immunovant’s Stock
A private drugmaker aborted plans to buy back its own SPAC at a hefty premium, sending shares of Immunovant Inc. plunging to an all-time low.
How to Evaluate the Risks of Life Settlements
For advisors looking to add diversification and growth potential to client portfolios, life settlements are a compelling asset class.
How Advisors Can Maximize After-Tax Returns
Frank Pape is the senior director, portfolio consulting for Russell Investments’ advisor and intermediary solutions business. In this interview, he discusses the latest research on how advisors can maximize the after-tax income for their clients.
Policy Errors Have Consequences
I am worried the Fed will either let inflation become psychologically entrenched, or wait too long to stop it and spark crisis with a too-hasty response, but there are other possibilities. None are especially good.
Financial Inclusion: Why Improving Access to the Underbanked is Good For Business
Senior Global Equity Opportunities Analyst Julian Wellesley discusses the role of banking in racial wealth inequality in the US and the steps banks could take toward financial inclusion.
The Difficult Dynamics of Naming a New Partner
My partner and I have worked together for a long time. We are polar opposites, but it is like a marriage. We want to name a third partner, one of our existing financial advisors.
The Law of Fashion
The great philosopher, John Locke, brilliantly captured the way the world works.
How We Attracted Talent During this Financial Advisor Shortage
Here are a few tips for finding – and keeping – great advisors during a talent shortage.
Three Disruptive Trends Set to Transform the Auto Industry
Over the next 10 years, the global automotive industry is expected to face one of the most significant changes in its history – the replacement of internal combustion engine (ICE) vehicles with electric vehicles (EVs).
Kazakhstan: A Developing Frontier Market with a Western-friendly Attitude
Frontier markets are popular to investors that seek higher returns, and Central Asia’s Kazakhstan is regarded with particular interest.
New Female-Led ETFs Are Bringing ‘Do More Good’ Mantra to U.S.
The latest clean energy ETFs to hit the market are looking to promote companies doing the most to avoid carbon emissions.
Making Sense of Tesla’s Run-up
The only feasible explanation for the 10x run-up in Tesla’s stock price was a spreading narrative that it is more than a car company.
Delta Force, ECB's Strategy Review, State of the States
Delta has the potential to alter the path of recovery; central banks are rising to face heavy challenges; and U.S. states have survived a major stress event.
Xi’s Big Mistake
Xi has been trying to balance economic freedom and authoritarian control and it’s not working like it used to. Today we’ll review some recent events that illustrate where Xi went wrong.
Why It’s So Hard to Choose ESG Funds and ETFs
Choosing a fund or ETF with a positive ESG profile is fraught with risk. New research shows how carefully investors must weigh considerations such as screening criteria, factor exposures, industry concentration and expenses.
Q2 CIO Review and Outlook
CIO Robert Horrocks, PhD, discusses the short and longer-term prospects for Asia and EM in a rising inflationary environment.
What’s Next for Municipal Bonds After a Strong First Half of the Year?
As summer hits its stride, here are some musings about municipal bond performance to mull over as you unwind at the beach or on the couch (no judging!).
K2 Advisors Third Quarter Hedge-Fund Strategy Outlook
Heading into the second half of the year, pandemic concerns are not completely in the rear-view mirror.
Returning to Normal?
As the global economy continued to reopen and the recovery gained speed, markets reached new highs.
Don’t Get Rugged
Be forewarned – we are going to empty the quote bin this quarter.
Wall Street’s Math Whizzes Are Racing to Wire Up the Bond Market
For years, David Horowitz at Agilon Capital was a rare breed in the bond market: a quant in a notoriously old-school business where prices were a call rather than a click away.
Are US Corporations Above the Law?
By siding with major food corporations over six Malian former child slaves who were seeking compensation under US tort laws, the US Supreme Court has sent a dangerous message.
Do-It-All Central Banks Risk Rates Flexibility With New Mission
Central bankers are engaged in the most sweeping rethink of their role in decades, spurred by the success of tight collaboration with governments in countering the pandemic crisis and a new political reality of increased demands on monetary policy makers.
How Will the Western Drought Affect Munis?
More than 75% of the West is in an extreme or exceptional drought, with over 58 million people living in a drought area—and expectations are that it will get worse.
Earnings Bounce Poses Quality Test for Equity Investors
As the world convalesced from the pandemic, stocks advanced in the second quarter and earnings rebounded across sectors.
Capitalism Does Not Equal Corporatism - Pt. 2
In Part-2 of “Capitalism” does not equal “Corporatism,” we delve into why bailouts support corporatism and how to fix the system.
What Are Bond Investors Thinking? Their Three Top Concerns
Bond investors are worried, and who can blame them?
What Will Reverse the Dangerous Trends in U.S. Society?
Rising inequality is but one symptom that the U.S. has swung to a society that is characterized by a disproportionate focus on individuals over the collective good. A national priority, similar to the Apollo moon project of the 1960s, is needed to reverse that trend, and there is an obvious candidate.
The New Inquisition
Rather than my usual economic/investment letter, this week I want to take a more philosophical tack, looking at some of the challenges we face as a country and culture, beginning with the freedom of the press but then turning to technology and even wealth disparity. We will have to consider what freedom of speech meant in the 1800s, what it meant at the turn of this last century, and what it means today in a world of social media.
The Sobering News for Private ESG Impact Investments
As predicted by theory, increased investor demand has resulted in higher returns for public stocks with good environmental, social and governance (ESG) characteristics. Unfortunately, that means future returns will be lower for those stocks. New research confirms that this is also the case for private “impact” investments.
Govcoin
Let me begin with a confession. Govcoin is a made-up name.
The Case for Global Bonds
Constructing sustainable and risk-adjusted portfolios in a global context
ESG Investing – The Great Wall Street Money Heist
Wall Street is once again in the midst of a “money heist” from naive investors.
U.S. Housing Prices Jump the Most in More Than Three Decades
U.S. home prices jumped the most in more than 30 years in April.
Democrats Try To Hijack Voting Laws/Rights
I generally try to avoid political commentaries in Forecasts & Trends, although I never hesitate to make it clear I am a conservative on most issues.