New Beginnings With the Year of the Rat
Because it’s the first of the 12 zodiacs, the Year of the Rat is seen as a time of beginnings and renewals. That brings us hope, especially paired with the recent positive development in the U.S.-China trade war.
The Case for Replication in Alternative Asset Classes
Advisors and allocators have struggled for years with a simple question:
How can my clients get the diversification benefits of leading hedge funds, but in a mutual fund or ETF with reasonable fees and less downside risk?
In this webinar, Andrew Beer will explain how hedge fund replication is a potential solution. Hedge fund replication, broadly defined, is a strategy that seeks to match or outperform hedge fund returns with lower fees, daily liquidity and less downside risk by mimicking the core exposures and trading strategies of high cost, illiquid hedge funds. The webinar will cover key educational topics, such as
- What are the different forms of hedge fund replication?
- What’s worked well and what hasn’t?
- Why do some replication-based strategies outperform actual hedge funds?
- Why should advisors consider a hedge fund replication-based mutual fund or ETF today?
The presenters will be available after the presentation to answer attendees' questions live.
Are Low-Volatility Stocks Too Expensive?
Even as global stocks climbed in 2019, market volatility persisted. By some measures, lower-volatility stocks now look quite expensive. But in fact, high-quality stocks that can help protect portfolios can be found at reasonable prices, if you know where to look.
Q4 2019: "New Highs"
It has been a great year for equity investors. The S&P 500 index posted a 31% annual return, the Dow 25%, and the NASDAQ a spectacular 39%. More than $6T of equity paper wealth was created for domestic investors this year alone.
World Markets Update
Five out of eight indexes on our world watch list posted gains through January 21, 2020. The top performer is our own S&P 500 with a gain of 1.93%. Germany's DAXK is in second with a gain of 1.27% and in third is Tokyo's Nikkei 225 with a gain of 0.88%. Coming in last is Hong Kong's Hang Seng with a loss of -1.96%.
Bitcoin Has Its Best Start to a Year Since 2012
Among the biggest contributors to the bitcoin rally is the hope that 2020 could finally see institutional investors move into the digital field en masse, prompted by growing client demand and more attractive ways to get exposure.
New All-time Highs on Declining Breadth is Reason for Caution
There are a number of factors that have us tactically concerned about a period of over-exuberance among equity investors. Those include record low put/call ratios and extreme inflows into equity ETFs. But among the more troubling facts of late is the breakdown in breadth we are witnessing even as the equity markets rally to new cycle or all-time highs.
The Enterprise Multiple and Expected Returns
Quantitative value investors have traditionally relied on price-to-book as the metric to classify stocks. But new research shows that price-to-enterprise value is a more powerful tool to construct portfolios. That research also sheds light on the question of whether the value premium is risk- or behaviorally-based.
Investment Lessons from 2019
Every year, the markets provide us with lessons on prudent investment strategies. Many times, markets offer investors remedial courses, covering lessons it had taught in previous years. That’s why one of my favorite sayings is that there’s nothing new in investing, only investment history you don’t yet know.
Repetition Can Be a Form of Change
Despite Sauron and Einstein’s failed attempts at unified theory, 2019 was simply the tenth year whereby interest rates were low and went lower, credit remained both cheap and plentiful, the economy was “good enough,” and those who can print money re-dedicated themselves to a willingness to print money. The logical conclusion to this set of events is to buy and hold U.S. equities. Drop the mic—again.
Manufacturing - Problem Child of the Economy
The January edition of Macrogram highlights the current state of the economy. The chart-based newsletter shows the weakness in manufacturing, calls attention to the current slope of the yield curve and covers key macroeconomic indicators. Macroeconomic insights at-a-glance.
Passive Strategies Are Speculation, Not Investing
Value investing is an active management strategy that considers company fundamentals and the valuation of securities to acquire that which is undervalued. But as Graham and Dodd defined it, passive strategies are not investing; they are speculating.