Diversity & Inclusion

The odds of a stagflation environment are continuing to rise in our opinion. Over the past few weeks/months we have made this view clear by looking at both sides of the coin, growth and inflation. Over that time, the evidence continued to mount in favor of our view.

We all know that past performance is no guarantee of future results, but you can see in the chart below that the white metal could possibly be setting up for another epic run-up. At this stage of the bull market, silver’s current price appreciation is ahead of any previous rally.

Applying the definition of factor robustness that was established by our Research Affiliates colleagues in a 2016 award-winning paper, we determine ESG is not a factor. Nevertheless, the importance of ESG as an investing strategy is undeniable. We explore how greater clarity around defining ESG can quicken the pace of ESG integration in equity portfolios.

As China’s equity markets gradually open up to foreign investors, Chinese companies could face greater scrutiny, according to Franklin Templeton Emerging Markets Equity’s Michael Lai. He weighs in on some emerging trends he’s seen in regard to environmental, social and governance (ESG) issues there.

With less than four months to go until Americans cast their votes for president, we’ve fielded an increase in questions from clients as to whether the U.S. presidential election poses a risk to markets and the economy. The short answer is yes.

What we’re seeing in our big cities today is unprecedented. No one knows where this violence is headed, how to stop it, or when it will end. We’ve turned a new corner in our country, and I don’t think anyone knows for sure where it will lead us. It is certainly not a good direction.

The economic calendar is light with a focus on home sales. Unemployment claims data remains an especially important indicator. Second quarter earnings reports will be more important than the economic data, but I do not expect much fresh information on COVID-19 and earnings outlook.

Democrats in New York, the world’s financial capital, may finally have the right moment to resurrect the state tax on stock trades.

This part two of a series of discussions about how the issues of banking, taxation and slavery became intertwined and how the debate over the national currency and the national debt that the Civil War produced would shape what we think of as an entirely modern idea - a central reserve bank.

Month-over-month nominal sales in June increased by 7.5%. Real Retail Sales, calculated with the seasonally adjusted Consumer Price Index, increased by 6.9%.

Black swans are swimming in flocks. We highlight today’s biggest black -and white- swans that can hurt -or help- your portfolio.

Eileen Murray, who departed Bridgewater in April and will become Finra's chairman in August, is the longest tenured executive at the firm other than founder Ray Dalio.

The Zoom Boom is coming to a shareholder meeting near you.

At LPL Research, we know the stock market is forward-looking: It focuses on what’s happening today and what it sees on the path ahead. Much of the real-time economic data we follow—such as transportation activity, home sales, and jobless claims—is showing tangible evidence that economic activity—while still depressed—has begun to make a comeback.

Imagine telling clients you’re their guru, guide and gladiator. Learn a simple framework to help articulate your distinctive value.

Recently, in the wake of the dramatic, catalyzing events associated with the COVID-19 pandemic, analysts have struggled to match the action in the Economy with that of the Financial System. Existing disparities of inequality and maldistribution have been dramatically exacerbated as the financial indices have soared.

The value of this year’s annual hedge fund performance survey was turned on its head when a pandemic shut down the global economy and sent securities plummeting. But a deeper look at consistently performing funds revealed managers that as a group have largely been able to weather the storm better than the market and their peers.

All of the increased tax burden falls on the top 2%, a problem for a couple of big reasons, the author maintains.

The global market outlook is already hazy in light of the COVID-19 pandemic, and the upcoming US presidential election adds another layer of uncertainty.

Today we’ll look at the data, including some non-government sources. As you will see, millions of workers will stumble through this period, and they may be the lucky ones.

Wells Fargo & Co. is launching a $400 million fund to donate the fees it got from the Paycheck Protection Program back to small businesses, particularly ones that are minority-owned.

In 1976, Grateful Dead released “What a Long Strange Trip It’s Been.” The second quarter felt like a long strange trip, except it took place over just three months. We entered the quarter trying to flatten the curve, did so, and saw the economy reopen and social distancing restrictions relaxed to a degree.

This is the second in a series of posts focusing on the formula of advisor value. In this post, we tackle the behavioral mistakes that investors typically make. Addressing the investment behavior of your clients may be the greatest value you provide.

If you missed Part-1 of our series on the “Theory Of MMT Falls Flat When Faced With Reality,” start there. In Part-2, we complete our analysis of the theory and the potential ramifications. The premise of our discussion was this recent explanation of “Modern Monetary Theory” by Stephanie Kelton. As discussed previously, economic theory always sounds much better than how it works out in reality.

American ingenuity is something to take pride in this weekend as we (safely) celebrate the Fourth of July.

As you read this, the Financial Planning Association is engaged in one of the most consequential initiatives in its history, and for some reason this important program is getting zero publicity.

Companies are coping with diverse challenges through the coronavirus crisis. Investors who integrate environmental, social and governance (ESG) factors into their research can gain important insights on how businesses are adapting—and how future return potential might be affected.

Quarterly commentary giving an overview of the markets and the importance of having and implementing a strategy when investing in the markets.

As if the Coronavirus outbreak wasn’t enough of a problem for society to deal with, shortly afterwards, two American police officers ended the lives of two American civilians. Why that will affect financial markets for a long time to come you can read here.

The Fed chair in his remarks to lawmakers struck an optimistic note on what he is seeing as economic activity resumes.

Unusual times require more than the usual sources of information to assess the investing backdrop. Jeff Shen discusses how alternative data is making a difference today.

In the municipal bond market, the issuance of green bonds has provided an attractive solution for investors interested in socially responsible investments while also receiving the tax-exempt income benefit municipal bonds offer. Franklin Templeton’s Municipal Bond team provides an overview of green bonds, including potential benefits and risk considerations.

Markets have rallied on hopes for an economic recovery as coronavirus-imposed lockdowns are eased across the globe. The rebound has been helped by oversold investor sentiment, but with sentiment back to neutral, so too is our strategists’ market outlook.

A “perfect storm” of surging government debt levels, plunging real bond yields, rising coronavirus cases and deteriorating economic forecasts pushed the price of gold to an eight-year high this week, and some analysts now project the metal to top its all-time high within the next 12 months.

For most US governors, June typically brings political fireworks when state legislatures hammer out final budgets for the next fiscal year.

While technicals for the asset class remain a headwind in the near-term, bank loans may provide an attractive opportunity and relative value.

Even after the partial rebound from COVID-related losses, we think high-quality companies in certain developed and emerging markets remain compelling investments. High-quality companies outside the U.S. look especially attractive to us.

Can you reignite the growth of your business in the the second half of 2020? We think so. Here’s why we believe the next six months may hold a once-in-a-lifetime opportunity.

Fed Funds futures are predicting that the Federal Reserve will lower their benchmark Fed Funds rate below zero by mid-2021. Will this really happen?

The unprecedented amount of fiscal and monetary stimulus that has been showered on the US and global economies has the potential to lead to inflation...an environment of generally rising prices. Unfortunately, this could be playing out in an environment of little to no economic growth.

We are, in short, hitting the road as if it was 1957 again, implicitly heading for herd immunity — and substantially more excess deaths — until a vaccine turns up.

Automatic enrollment initiatives build on one of the most important findings in behavioral science.

One shouldn't think about the "stock market." Instead, think of it as the "Spock market."

President Trump, like many others along the political spectrum, has derided the persistent U.S. trade deficit – particularly with China – as a waste of capital leaving our country. The view that the U.S. would benefit by correcting this imbalance is taken up in a new book, with a message that should concern all financial market participants.

In this latest survey, 68 leading bond and currency managers considered valuations, expectations and outlooks for the coming months.

Emily presents key takeaways on the exercise of green bond impact reporting.

While such investors are generally small in terms of assets under management, they raise issues that are often backed by larger investment firms.

The common characterization of US-China relations as a new Cold War is wrong. Instead, the most recent spike in tensions between the two countries – the second time this has happened since US President Donald Trump took office in 2016 – is primarily motivated by political considerations ahead of the November US presidential election.

Over the course of history, during world wars, pandemics, financial crises, and deep recessions, municipal bond defaults have been an extremely rare occurrence. There have been less than 700 rated municipal bond defaults in the over 100 years of public finance existence. As a point of comparison, we saw over 117 corporate defaults in 2019 alone.

What else should I be doing to ensure inclusion and openness among my team members?

Having trouble helping your clients appreciate a balanced portfolio? These charts may help.

Franklin Templeton’s 2020 US Retirement Income Strategies and Expectations survey revealed the importance of having a plan to help reduce financial-related stress—particularly relevant amid today’s uncertainties. Our Felix Touchard discusses some findings of the survey, and how respondents feel about their financial future.

While a near-term mechanical bounce in economic activity in response to the lifting or easing of lockdown measures looks likely, we expect the subsequent climb up to be long and arduous.

He explains why even someone like himself — who has spent a lot of time around hyper-rational people who respected him, knew where he went to school and how much money he made — shares the feeling of being demoralized.

Cambiar Investors Senior Analyst Charmaine Chan, who holds a doctorate in molecular biophysics and biochemistry from Yale University, details the latest on possible vaccines, the likeliness of a second wave of coronavirus and the next steps for the U.S. on the road to recovery.

Puerto Rico’s debt attracted investors throughout the U.S. for its higher yields and because the securities are tax exempt in all 50 states. Bondholders now wonder if they will ever get repaid.

Many consultants now offer portfolio-wide assessments of physical climate risks that companies face. Who should you rely on?

It is imperative that all Americans see recent events around racial inequality as a call for action and work to ensure equality for people of color. In his latest memo, Howard Marks shares his thoughts and pledges to heed this call.

As expected, the Federal Reserve kept rates unchanged at 0-0.25% and said it will keep them near zero through at least 2022, in a unanimous vote.

The most important takeaway from today's Fed meeting is that policymakers don't expect to raise short-term interest rates until at least 2023.

Municipal bond defaults have been rare, making them a remarkably resilient investment over the years. The reasons range from the very services muni issuers provide to the fundamental characteristics of municipalities.

With everything going on in Minneapolis and the rest of the world, what should our messaging be?

There is a parallel between today’s stock market and Fischer random chess.

While investors have been pushing companies to disclose and address climate risk, most companies have been caught flat-footed around both the pandemic and recent racial justice issues.

Research from genetic-testing giant 23andMe Inc. found differences in a gene that influences a person’s blood type can affect a person’s susceptibility to Covid-19.

Our secrets for hosting a great virtual meeting.

This week marked the 50th trading day since its March 23 low, with the S&P 500 rallying ~40% —the best 50 day rally since 1932. While the index has recovered ~85% of its virus-induced losses, there is still a distance to go, and if you are like me, the further the race goes, the more challenging it gets and the slower I advance. 

Economic factors are motivating recent protests and changes to supply chains.

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 May 29, 2020 close

This is a statement by Robert Huebscher, CEO of Advisor Perspectives, on the killing of George Floyd and related events.

The bank is pledging $1 billion over four years to address racial injustice and economic inequality.

More widespread support today for change may reduce racial injustice, says this writer.

The CEO of one of the oldest responsible-investing firms says ending racism in America is a responsibility of corporations and that his company will press them to disclose information about their racial diversity.

Three factors that may explain today’s disconnect between Wall Street and Main Street.

Many companies worry they’ll fall out of step with customers and employees if they don't take a public stand.