Retirement savings for those in the Latino community are low. According to a 2018UnidosUS report, only 31% of Latino workers participate in an employer-sponsored retirement plan, compared to 48% of all other workers ages 21 to 64. According to a CNBCstory, 54% of Latinos work for an employer that offers a retirement plan compared to nearly 70% for all other workers in the same category. My guest today has devoted his career to service the Hispanic community and will tell us how advisors can help address those gaps.
Diversity & Inclusion
Closing the Gold Window Opened the Door to Modern Monetary Theory (MMT)
In the years since the end of the gold standard, there’s been a significant lack of discipline in government spending. Today, the federal debt is closing in on an astronomical $28 trillion, which is more than 130% of the size of the U.S. economy.
Forecast 2021: The Stock Market
The 2020s are going to be about rifle shots, not the shotgun approach of index funds.
Five Names for Investors to Know in the New Administration
Their decisions in the coming months could have an impact on the markets and investors.
Yellen Opens Debate on Giant Spending, Saying the ‘World Has Changed’
Janet Yellen invoked an enduring era of low interest rates in delivering the Biden administration’s opening argument to lawmakers for its $1.9 trillion Covid-19 relief proposal.
Trump Leaves Town an Outcast, Trailed by Pandemic, Job Losses
Donald Trump departs Washington on Wednesday with Americans more politically divided and more likely to be out of work than when he arrived, while awaiting trial for his second impeachment -- an ignominious end to one of the most turbulent presidencies in American history.
Yellen Runs Into GOP Resistance to ‘Act Big’ Call for Stimulus
Janet Yellen encountered early Republican resistance to President-elect Joe Biden’s $1.9 trillion Covid-19 relief plan in her confirmation hearing to become Treasury secretary Tuesday, as she sought backing for what she described as vital support for the economy.
Biden’s $2 Trillion Stimulus Plan – Implications For The Economy
This enormous stimulus plan will have numerous effects on the economy, including the likely loss of millions of jobs, which the media doesn’t report, so that’s what we’ll talk about today.
The Speculative “V”
The speculative “V” is one of the most interesting and challenging features of the market cycle. For passive investors, it can be a period of exhilaration followed by panic.
Unmasked Potential for Munis in 2021
2021 market outlook from BlackRock's municipal bond team.
Tail Winds Provide Lift for Emerging Markets Investments
A confluence of dynamics are set to accelerate global capital flows to emerging markets amid attractive valuations.
The Grip Tightens
Today we’ll begin by looking at new virus developments, some of which are good, some very good, and some frightening. We (the entire world) are in a very tight race with dire consequences if we lose.
Signal and Bitcoin: Twenty-First Century Tools of Personal and Economic Freedom
Founding Father Benjamin Franklin said it best: “They who can give up essential liberty to obtain a little temporary safety deserve neither liberty nor safety.” In this light, what are we to make of Trump’s social media suspension?
The Big Four: December Real Retail Sales Down 1%
Month-over-month nominal sales in December decreased by 0.68%. Real Retail Sales, calculated with the seasonally adjusted Consumer Price Index, decreased by 1.05%.
Monthly Municipal Market Update, December 2020
A brief monthly update on what's happening in the municipal bond market.
Winter Quarterly Commentary
The forceful rise of the markets from March depths continued in the fourth quarter. After stalling out in early Fall, market participants floored the accelerator in November with vaccine approval in tow and the election overhang in the rearview.
Vanguard’s 2021 economic outlook at a glance
We’ve distilled our economists’ 2021 projections for the global economy into a quick 4-page summary. Get concise details on our expectations for the coming year, including:
Washington in Turmoil: What Investors Should Know
It has been an extraordinary start to 2021 in the nation's capital. The images of a mob protesting the outcome of the presidential election by overrunning the U.S. Capitol building on January 6th are already seared into the nation’s collective memory. A week later, the House of Representatives, for the first time in American history, impeached a president for a second time.
Don’t Drop the Baton in Retirement: Managing the “Handoff” From Saving to Spending
PIMCO’s “Income to Outcome” framework offers strategies to navigate retirement’s stumbling blocks.
2021 Outlook: Will Global Credit Be in the Sweet Spot?
Credit markets have staged an epic rebound from the depths of March 2020. But in a low-growth, low-yield world, we believe there may be more room to run in 2021.
An Analysis of SPACs and What to Look for in 2021
With a record high number of SPAC IPOs and the success of some well-documented investments with triple digit returns, investors and advisors might be interested in evaluating a potential allocation to their portfolios. In this article I focus on a few basic criteria of the best-performing SPACs and tips on how to perform your own analysis.
CIO Insights – Turning The Page On 2020
Economic snapback to fuel global growth. We have a very optimistic outlook for 2021, with above-consensus GDP calls around the globe.
The Inflation Debate That’s Roiling U.S. Markets Faces 2021 Test
They’re still in the minority, but investors and economists who think America is in for a bout of inflation -- perhaps a serious one -- start the year with some fresh ammunition for their arguments.
Economic Commentary: Senate, Stimulus, and Brexit
The Senate outcome opens the door to future cooperation, while Brexit sets the stage for future frictions.
Will Commodities Ride the "Blue Wave" Higher in 2021?
This should be positive for gold, given the potential for greater government spending and, therefore, inflation.
2021 Outlook: Three Questions on Emerging Market Equities
Ashish Chugh discusses his outlook on EM equities in 2021.
December 2020 Strategy Letter - Soufflés and Sledgehammers
As we have noted previously, one cannot practically ignore the celebration regarding our annual lap around the sun, although I think it’s fair to say that there are roughly 7.5 billion people outside of Silicon Valley—or those who run large cap growth/tech funds—that are delighted to see 2020 declared over.
How to Double the Size of an Investment Firm in a Pandemic
Doubling the size of an investment advisory firm is hard even without a pandemic. But Dave Welling, the chief executive officer of Mercer Advisors and this week’s guest on the Masters in Business podcast, did it.
Emerging-Market Sovereigns: Pandemic Aftermath Sets Stage for Cyclical Uplift
Emerging-market sovereign debt has rebounded sharply off the lows, but this hard-hit sector offers attractive yields and compelling growth opportunities to discerning investors.
Growth vs. value: Preparing for the big one
It’s coming. Is it here? Perhaps. Or maybe not. But sooner or later, it is coming. Preparing now for the eventuality seems the most prudent course.
J O Hambro Capital Management 2021 Outlook - Better Times Ahead?
Free from a house view on economies, markets or stocks, J O Hambro Capital Management’s (JOHCM) fund managers invariably see the world in different ways. We asked a number of our managers for their thoughts on the outlook for their asset class next year, what they would like to see and the possible surprises that 2021 could bring.
Europe's "Man on the Moon" Moment
While 2020 brought many challenges and uncertainties for investors in Europe, Franklin Mutual Series Portfolio Managers Katrina Dudley and Mandana Hormozi see reasons to be optimistic about the future. They outline positive long-term attributes many may be overlooking.
Georgia Runoffs Hold Key to Senate Control, 2021 Policy Agenda
While Election Day is two months in the rearview mirror, the election is not over. A runoff election in Georgia on Tuesday, January 5th, will determine the balance of power in the U.S. Senate, a historically unprecedented scenario that will have a profound impact on President-elect Joe Biden's ability to move his policy agenda forward in the first two years of his presidency.
The VIX Dog That Didn’t Bark
Option prices, including the VIX index, have failed to provide advance warning of market crashes from Black Monday to last year’s coronavirus crash.
The Top 5 Most Popular Investment Stories of 2020
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.
Fast and Slow in “The Queen’s Gambit”
Super-fast computer programs and massive databases have had a profound impact on professional chess in recent years. But, despite the threat of cheating, the game is currently in remarkable creative and economic health – not least because it is fantastically suited to the online world.
US Poverty Rate Exploding - Parting Thoughts On 2020
With the COVID-19 pandemic spiking again, and with most federal stimulus programs having expired over the last several months, the US poverty rate is soaring at a rate never seen before. Nearly 8 million Americans have fallen into poverty over the last 5 months alone, since the government stimulus programs have largely ended.
Tesla’s Addition to S&P 500 Prompts a Review of Volatility Changes when Added to the Index
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.
In the Face of 2021 Tax-Rate Uncertainty, Tax Planning Matters Even More
Investors and planners desire clarity around tax rates to help make informed decisions around investment moves and related impacts to portfolios.
The Big Four: Real Personal Income in November
Personal Income (excluding Transfer Receipts) in November fell 0.60% and is up 0.9% year-over-year. However, when adjusted for inflation using the BEA's PCE Price Index, Real Personal Income (excluding Transfer Receipts) MoM was down 0.61%. The real number is down 0.2% year-over-year.
Amazon Investors Push for Racial Audit, Worker on Board
An Amazon.com Inc. institutional investor is pushing the world’s largest online retailer to conduct an audit on racism and diversity. Three other shareholders want Amazon to name a worker to its board.
It’s Easier for a Woman to Become Chancellor Than CEO in Germany
Critics say it lacks both ambition and teeth.
Citi’s Record Promotions for Women Still Just 29% of Total
Citigroup Inc. promoted 70 women in its latest class of managing directors, the most ever but still less than a third of the total.
Building a Stronger Bridge Into 2021: U.S. Congress Reaches $900 Billion Stimulus Deal
We believe that the recently announced U.S. stimulus deal reinforces the positive economic outlook for 2021. Here's why.
Weekly Investment Strategy
As the end of 2020 draws near, many of us are anxious to put this tumultuous year behind us, choosing to look ahead to 2021 in hopes that happier, healthier, and more prosperous times will be had by all.
The 2021 List Issue, Part 2: The Re-Evaluation List for Non-Profits and Healthcare
As the sun sets on one of the most challenging years in memory, many healthcare systems and other types of non-profits find themselves in starkly different financial situations than they were at the start of the year.
NewsLetter - December 2020
We hope you enjoy the December NewsLetter from Harold Evensky.
Tesla, the Largest-Cap Stock Ever to Enter S&P 500: A Buy Signal or a Bubble?
On December 21, Tesla will be the largest company ever to enter the S&P 500 Index. Tesla’s skyhigh valuation, which meets our real-time definition of a bubble, conforms to the observation that market-cap-weighted indices buy high and sell low—the antithesis of prudent investing.
Georgia Runoffs To Decide Direction Of The Country
The two Georgia Senate runoff races on January 5 will be among the most important elections in our lifetimes, whether you are a conservative or a liberal. As a result, enormous and unprecedented amounts of outside money are gushing into these runoffs.
How Guanxi Explains Advisor Success
I recently learned of a Chinese concept called “guanxi” that explains exactly why some advisors are more successful at building their client base and AUM.
The 2021 List Issue, Part 1: Global Markets – Top 7 Investment Watchpoints
Is the rotation toward value here to stay? What could stall the economic recovery? In the first in a four-part series of blog posts, we explore the key issues that are likely to impact the investment landscape in 2021.
A Fed Failure to Deliver Could Finally Push U.S. Yields Above 1%
The Treasury market’s bears may find a dose of vindication this week given that the Federal Reserve may disappoint some traders by not tweaking its bond-buying program, which could finally catapult 10-year yields above 1%, even if only briefly.
Do Active Sector Funds Generate Alpha?
Given their small size, narrow focus and high degree of specialization, it is reasonable to expect that active sector funds generate alpha. New research shows this is the case – but with a lot of caveats.
The Power of Volatility-Informed Strategies
Managers of VIX-informed strategies have nuanced understanding of volatility, utilizing it as a tool in all market cycles.
Green Light to a Greener Economy: Three Investment Trends
Some of the world’s leading countries have recently announced major sustainability targets. These moves, aimed at making economic recovery faster and more sustainable, will create investment opportunities as well.
Tesla Equity Sale Comes at a Good Time for Index-Fund Trackers
With Tesla Inc. about to be added to the S&P 500, people have wondered where index-tracking mutual funds will find the $80 billion of stock they’ll need to own in Elon Musk’s car-maker. Now they know: at least some of it will come from Elon Musk’s car-maker.
Touching On Several National Issues of Interest Today
The media seems focused on President-elect Biden and his Cabinet and inner circle appointments, whether President Trump will leave the White House peaceably, coronavirus developments, the January 5 Senate runoff races in Georgia and which party will control the Senate.
2021 Global Market Outlook: The Old Normal
We anticipate that COVID-19 vaccines and the easing of lockdowns will allow for a return to more normal economic activity by mid-2021.
Refuge for the Oranj Orphans
The most obvious solution for the advisory firms stranded by the Oranj shutdown has gone unnoticed.
Value: If Not Now, When?
GMO’s new quarterly letter to clients examines the worst 12-month performance for value stocks in history and explores how investors can profit from a period reminiscent of previous bubbles in global markets.
Who Can Investors Listen to When Everybody’s Wrong?: Barry Ritholtz
The year 2020 will be remembered for any number of things, including how wrong so many were about so much. From the pandemic to the election, and from the economy to financial markets, prognosticators did a horrible job.
Harvesting Yield in Emerging Markets
Debt of many emerging market countries can offer robust yields and enhance portfolio diversification, provided the asset manager has the resources and sophistication to avoid potential pitfalls.
Income is the outcome, Part 1
Passage of last year's SECURE Act may spark increased adoption of lifetime income products in defined contribution plans. Here's why.
What changes could a Biden administration bring to ESG investing?
Will support for ESG investing in the U.S. increase under the administration of President-elect Joe Biden?
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 November 30, 2020 close
As Markets Rebound, Dividend Stocks Capture Gains While Buffering Volatility
Within the broader Asia Pacific universe, Portfolio Managers Yu Zhang and Joyce Li see attractive total return potential among dividend paying stocks.
How Wrong Was Milton Friedman? Harvard Team Quantifies the Ways
George Serafeim wants to revolutionize the way businesses calculate their success.
Tesla’s S&P 500 Entry Puts $70 Billion of Passive Trades in Play
Tesla Inc. climbed on Tuesday as investors braced for the company’s addition to the S&P 500 in one shot on Dec. 21, a move that’s expected to spur as much as $70 billion worth of passive-fund flows.
Decades of Gains Over U.S. Poverty At Risk of Being Wiped Out
The escalating coronavirus pandemic could reverse decades of gains in the fight against poverty, as U.S. government aid for the vulnerable dries up.
The Misguided Role of Institutional Investors in Climate Change
The institutional investor’s role in the effort to combat climate change is misplaced.
No Single Story to the COVID Recovery
Recovery from COVID-19 has been a mix of successes and setbacks.
What China’s 14th Five-Year Plan Means for Investors
It will continue to be important to be an active investor during this period of transition and to carefully monitor the impact of policy on credit sectors.
Yellen May Restore Treasury-Fed Cooperation, With Eye on GOP
As Treasury secretary, Janet Yellen is almost certain to pursue tighter coordination with the U.S. Federal Reserve next year -- repairing recent frictions -- though observers say she will be careful to avoid any specific move that could trigger a wave of Republican protests.
Jay-Z Joins Blank Check Company in California Cannabis Bet
Subversive Capital Acquisition Corp., a special-purpose company that’s growing in the cannabis business, said it acquired two California companies and named Shawn “Jay-Z” Carter as its chief visionary officer.
A Hopeful Way to Rethink Thanksgiving
Thanksgiving is supposed to be a special day. The reality is different, but a daily, five-minute exercise can transform it into the experience we all want.
As Markets Rebound, Dividend Stocks Capture Gains While Buffering Volatility
Within the broader Asia Pacific universe, Portfolio Managers Yu Zhang and Joyce Li see attractive total return potential among dividend paying stocks.
Vaccine Hopes Shouldn’t Drive Healthcare Investing Strategies
Healthcare stocks are once again in focus as a result of promising news of COVID-19 vaccines. But investors shouldn’t hunt for the pandemic’s panacea. Focusing on business fundamentals is a much better way to find healthcare stocks with long-term potential than searching for the next big drug.
Non-Traditional Sources of Income in a Low-Rate World
Amid historically low rates, the income solutions of yesterday are not going to cut it. Global X ETFs has recognized and reacted to this paradigm shift by developing alternative, higher-yielding strategies.
Jeremy Siegel: 2021 will be a Bull Market for Stocks
“I predict the bull market will continue next year,” says Jeremy Siegel. “Stocks are not overpriced.”
The Challenge Facing ESG Investors
The data used to construct ESG portfolios differs widely among providers, meaning that funds may not be aligned with your clients’ objectives and beliefs.
Demystifying the False Choice of Value and Growth Investing
Value managers often use static point in time multiples such as Book to Price to identify attractive companies. P/B is a “cheapness” indicator rather than a measure of a company’s intrinsic value, as it does not include the essential components to value a company: profitability, growth, competition, and risk. On the other hand, growth managers focus on a companies ability to growth their business assuming it will lead to creating shareholder value.
Vanguard’s Top Strategist’s Outlook for the Economy and Credit Markets
Anne N. Mathias is a senior strategist for Vanguard and a member of the firm's Fixed Income Group, with a focus on global macroeconomics, interest rates, and foreign currency. I spoke with her about the outlook for the economy and the credit markets.
Making a trade and checking it twice: Trading mistakes to avoid over the holidays
Trading over the holidays? You’ll want to check this list—errr, article—twice.
Pushing Extremes
In calling the current market the third “Real McCoy” bubble of recent decades, Jeremy Grantham described, in his own words, what I call the Iron Law of Valuation: a security is nothing more than a claim on some set of future cash flows that investors expect to be delivered into their hands over time. The higher the price an investor pays today for some amount of cash in the future, the lower the long-term return the investor can expect on that investment.
What's in Trump's Latest Executive Order Against China?
By now you may have heard that President Donald Trump signed an executive order banning Americans from investing in a select number of Chinese firms that have ties to China’s military.
Musk Is a Tesla Rally Away From Unseating Gates as World’s Second Richest
Elon Musk is just a Tesla Inc. rally away from unseating fellow mega-billionaire -- and occasional verbal sparring partner -- Bill Gates as the second-richest person on the planet.
US 2020 Election Investment Pulse: Why Fixed Income Now
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.
Humbling Outbreak
The Northern Trust Economics team reviews the outlook for developed markets facing COVID-19.
Minisode - Understanding the Hispanic Wealth Management Market
Retirement savings for those in the Latino community are low. According to a 2018 UnidosUS report, only 31% of Latino workers participate in an employer-sponsored retirement plan, compared to 48% of all other workers ages 21 to 64. According to a CNBC story, 54% of Latinos work for an employer that offers a retirement plan compared to nearly 70% for all other workers in the same category. My guest today has devoted his career to service the Hispanic community and will tell us how advisors can help address those gaps.
Google Employee Calls Sexual Misconduct Settlement a ‘Whitewash’
A Google employee in a court fight with the search company is trying to block a $310 million settlement to resolve separate litigation over sexual harassment and executive misconduct.
Weighing the Week Ahead: Learning from Swiss Cheese
The economic calendar remains less interesting than politics, market gyrations, and the coronavirus. Those will be the media topics. A bigger challenge is finding a way to identify what is important and to determine the causal relationships.