Diversity & Inclusion

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:

• Global investment-return expectations.
• The potential unevenness of the recovery path.
• Lasting effects from the pandemic.

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 6^th 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.

PIMCO’s “Income to Outcome” framework offers strategies to navigate retirement’s stumbling blocks.

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.

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.

Economic snapback to fuel global growth. We have a very optimistic outlook for 2021, with above-consensus GDP calls around the globe.

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.

The Senate outcome opens the door to future cooperation, while Brexit sets the stage for future frictions.

This should be positive for gold, given the potential for greater government spending and, therefore, inflation.

Ashish Chugh discusses his outlook on EM equities in 2021.

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.

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 sovereign debt has rebounded sharply off the lows, but this hard-hit sector offers attractive yields and compelling growth opportunities to discerning investors.

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.

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.

While Election Day is two months in the rearview mirror, the election is not over. A runoff election in Georgia on Tuesday, January 5^th, 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.

Option prices, including the VIX index, have failed to provide advance warning of market crashes from Black Monday to last year’s coronavirus crash.

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.

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.

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.

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.

Investors and planners desire clarity around tax rates to help make informed decisions around investment moves and related impacts to portfolios.

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.

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.

Critics say it lacks both ambition and teeth.

Citigroup Inc. promoted 70 women in its latest class of managing directors, the most ever but still less than a third of the total.

We believe that the recently announced U.S. stimulus deal reinforces the positive economic outlook for 2021. Here's why.

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.

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.

We hope you enjoy the December NewsLetter from Harold Evensky.

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.

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.

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.

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.

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.

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.

Managers of VIX-informed strategies have nuanced understanding of volatility, utilizing it as a tool in all market cycles.

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.

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.

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.

We anticipate that COVID-19 vaccines and the easing of lockdowns will allow for a return to more normal economic activity by mid-2021.

The most obvious solution for the advisory firms stranded by the Oranj shutdown has gone unnoticed.

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.

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.

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.

Passage of last year's SECURE Act may spark increased adoption of lifetime income products in defined contribution plans. Here's why.

Will support for ESG investing in the U.S. increase under the administration of President-elect Joe Biden?

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

Within the broader Asia Pacific universe, Portfolio Managers Yu Zhang and Joyce Li see attractive total return potential among dividend paying stocks.

George Serafeim wants to revolutionize the way businesses calculate their success.

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.

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 institutional investor’s role in the effort to combat climate change is misplaced.

Recovery from COVID-19 has been a mix of successes and setbacks.

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.

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.

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.

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.

Within the broader Asia Pacific universe, Portfolio Managers Yu Zhang and Joyce Li see attractive total return potential among dividend paying stocks.

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.

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.

“I predict the bull market will continue next year,” says Jeremy Siegel. “Stocks are not overpriced.”

The data used to construct ESG portfolios differs widely among providers, meaning that funds may not be aligned with your clients’ objectives and beliefs.

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.

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.

Trading over the holidays? You’ll want to check this list—errr, article—twice.

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.

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.

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.

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.

The Northern Trust Economics team reviews the outlook for developed markets facing COVID-19.

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.

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.