The weak dollar, low-interest rates, and accelerating growth—these are just three of an array of factors that argue in favor of increasing your clients exposure to emerging markets.
Join us Wednesday, March 10, for a review of EM investment opportunities. Headlining our webcast panel will be Calamos Founder, Chairman, and Global Chief Investment Officer John P. Calamos, Sr. Joining John will be:
In addition to covering secular growth themes (monetary and fiscal stimulus, China’s global leadership, growth and inflation expectations, the weaker dollar, and strengthening liquidity), you’ll hear the Calamos’ take on several thematic tailwinds driving the EM opportunity, including:
We’ll conclude our discussion with a review of the differentiated approach of Calamos Evolving World Growth Fund (CNWIX), which has successfully pursued a favorable risk/reward skew through bottom-up security selection, top-down thematic analysis, and opportunistic use of less-well-known asset classes, such as convertible securities.
A variety of macro and fundamental factors are converging in emerging markets, signaling a period of resurgence. We believe structural changes, a supportive investment environment, and dynamic geopolitical influences make EM particularly attractive right now. For example, semiconductor production could soon become more critical to EM growth than commodities. Now may prove to be an inflection point, especially for portfolios focused on capturing this dynamic change. Please join us for an interactive webinar highlighting EM's changing nature and the added value of active management.
From cloud computing and automation to self-driving cars, technology continues to be one of the world’s hottest sectors. Our Chief Market Strategist Stephen Dover and Portfolio Managers Donald Huber and John Remmert believe active investing in technology and innovation is a global story, and government support and spending in next-generation technologies is likely a long-term positive.
House lawmakers kicked off an effort to tackle dominant technology companies, vowing a revamp of competition laws to curb their power.
The rout in popular technology shares accelerated after the 10-year Treasury rate spiked as much as 23 points, fueling worry that the Federal Reserve will be forced to raise interest rates.
More than 90% of investors believe the economy will be more robust in 2021, with a consensus it’s a V-shape recovery. For the first time since January 2020, chief investment officers want to increase capital spending rather than improve balance sheets.
Continuing our series, Going Independent, we want to provide those considering going out on their own with an easy-to-follow checklist of everything you need to do to form your own RIA.
Turmoil in mega-caps like Apple Inc. is stirring investor anxiety. But for professional stock pickers, it’s mostly good news when the market’s biggest companies loosen their grip.
Hydrogen’s potential as an energy source is attracting renewed attention. It may take 20 years or so for the potential to be realized. But the effects are likely to be felt within the planning horizons of most long-term investors—a good reason to start thinking now about the investment implications.
The COVID-19 crisis has kept our industry on its toes, pushing firms and clients to find new ways to communicate and collaborate in spite of new difficulties. If anything, it has underscored how important it is to use technology to your benefit.
This case study covers how advisors like Mike McCann have used technology to automate routine tasks, stay connected with clients and colleagues, and ensure they provide responsive service for every client. His firm, Perspective Financial Services, has used technology to power growth in the face of these challenges – growth for both their clients and their firm.
In reading Mike’s story and his advice, you too can learn to apply these technology tools to your own practice and be better prepared to take on the unexpected.
We’ll cover powerful and practical tech insights and guidance, including:
Download this case study to learn how your firm can power a better client experience.
RIA technology products are not known for their efficiency, low cost or delightful user experience. Altruist is a new, seamlessly integrated digital investing platform, which results in extraordinary ROI for financial advisors and enables them to spend far more time with clients.
I will break down the levels of a standard marketing funnel and provide specific steps that financial advisors can take to create their own.
Plastic-wrapped foam mattresses, dilapidated plastic shelving units, three-legged Ikea chairs—Jay Reno calls this “end-of-life” furniture. And it’s accumulating by the dumpster-full in landfills.
Casualties are piling up across the stock market as bond yields rise.
The biggest slide in months for Cathie Wood’s funds is testing the resolve of investors who plowed billions of dollars into one of the hottest firms on Wall Street.
The energy sector is beginning to adapt to the realities of climate change. Who is best positioned for the future?
We think this is an excellent time to ponder the thoughts of Buffett and Munger.
What recently transpired in GameStop's stock was truly epic. More astonishing, though, was the ease at which a nihilistic narrative took hold in the absence of fact. To me it was telling and an opportunity to improve my thinking.
About a week ago, an unprecedented polar vortex descended upon the southwestern United States. The deep cold forced power plants in Texas to take production offline, leading to rolling blackouts and leaving more than four million households without power.
For bond investors, inflation is pretty much all bad news, eating into the value of future returns. For equity traders, the tidings can be less categorically awful, given the ability of certain companies to wring profits from higher prices.
U.S. stocks have the highest CAPE ratio of any global equity market, but they are still the place to invest. But the inventor of that metric, Robert Shiller, says that stocks are indeed risky.
What a week for price data! We have been writing about the possibility of higher inflation for months now, most recently here. We have also highlighted the most likely assets to benefit from higher inflation like copper, oil and energy stocks.
Many investors think there are only two options in a market where participants have become overly exuberant, either 'I want in' or 'Get me out.' Our strategies are more nuanced, and we believe fit better with what we expect to transpire.
That there was a price “bubble” that burst in the American political economy from 1835 to 1845 is beyond question. The challenge is to reconcile the data sets for commodity and securities prices, interest rates and production volumes with the narratives of what happened.
Rather than going deep into one theme, this week we will do a “Random Thoughts” from the Frontline. Today we will cover several topics in shorter form: valuations, infrastructure, the debacle in Texas, and a lot more.
Millions of Texans were without power this week when the state was hit with a record setting winter storm. An overhaul of its aging infrastructure would require massive amounts of metals and other materials, which would be positive for miners and producers.
BlackRock Global Allocation Fund portfolio manager Russ Koesterich explains why he expects volatility to drop -- and cyclicals outperform.
One of the most common complaints I hear from investors is that their advisors or brokers like to tell them when to buy, but never tell them when to sell. Whether those criticisms are fair or not, the sell decision is certainly the most vexing decision that investors face.
Apart from some high-profile downgrades, the muni credit markets finished 2020 buoyed by breakthrough vaccines and signs that state and local tax collections were better than anticipated.
New virus variants are stoking COVID-19 angst, but we see vaccination programs opening the door to economic and market recoveries.
It’s another milestone for Cathie Wood’s Ark Investment Management. Less than two weeks after hitting $50 billion in assets, the red-hot firm now manages more than $60 billion, as funds flow into Wood’s exchange-traded funds at the fastest pace ever.
Although US technology equities tend to dominate the conversation about technology investing, Franklin Equity Group’s John Remmert and Don Huber believe there are many innovative international technology companies that tend to get overlooked.
Is inflation coming? At some point, yes. We know what generates inflation, and we will be watching for it. Until then, we do not expect a wildfire in inflation land.
How can you help a family foundation plan for rapid growth in a way that is consistent with their wealth management objectives?
Are proposed fiscal policies and student debt forgiveness too much of a good thing?
Our Chief Market Strategist Stephen Dover believes cryptocurrency (crypto) is evolving into its next cycle of innovation. As an integral foundation for an alternative financial and internet ecosystem, crypto’s disruptions, opportunities, risks, and long-term implications are worth watching.
To say the market is bubblelicious is a bit of an understatement given that retail “investment” in call options and penny stocks is quite literally off the charts, dwarfing numbers we saw in 1998-2000.
The Financial Planning Association, or FPA, is the principal membership organization for CERTIFIED FINANCIAL PLANNER™ professionals and those who support the financial planning process. I am joined today by the two leaders of the FPA and a veteran observer of the financial planning profession. I am looking forward to a spirited discussion about the role that the FPA will play among financial planners, the challenges it faces and how my guests plan to overcome those challenges.
Happy Year of the Ox! Today China and a number of other Asian countries celebrate the Lunar New Year, also known as the Spring Festival.
Rob Arnott: “There hasn’t been a better time to be a value investor at any other time in my career. I look back at the tech bubble and I never thought I would see valuations stretched the way they were then. We're back to that, and then some." We invite you to revisit “Reports of Value’s Death Have Been Greatly Exaggerated” now published in the Financial Analysts Journal.
Quantitative investment firm Dimensional Fund Advisors is already making waves in the $5.9 trillion exchange-traded fund market.
Hope is high that economic growth will accelerate as more people are vaccinated against COVID-19, but so far economic data has been lackluster. Meanwhile, bond investors are expecting inflation despite signs that the economic recovery’s momentum may be stalling. Why does everything seem so disconnected?
Bitcoin jumped to a record high after Mastercard Inc. and Bank of New York Mellon Corp. moved to make it easier for customers to use cryptocurrencies.
On October 2, 2019 brokerage firm Charles Schwab announced they were no longer going to charge commissions on stock and ETF trades. Before the day closed E-Trade and TD Ameritrade followed suit. And just like that, commissions were dead.
It’s more than enough money, at going prices, to buy one GameStop, two AMC Entertainments and four Bed Bath & Beyond's.
This is a new type of exchange-traded ETF that is built differently from a traditional ETF.
I don’t say this often, but Fed Chairman Jerome Powell is wrong. Regular readers of our investor letters and other publications will recall that we regularly cite Chairman Powell as doing the best he can with the levers he has while arguing correctly for others to do their part.
Joe Biden’s administration has dedicated its first few weeks in office to spending more money on pandemic relief -- and shrugged off warnings that the economy may overheat as a result.
As quickly as it soared to the moon, GameStop came back down to earth; but the lessons learned are key to turning day trading speculators into longer-term investors.
The phrase “Frontier Technology” can mean a lot of different things to different people. LOUP Ventures, led by technology guru, Gene Munster, seeks to invest in companies within areas such as AR/VR, Autonomous Vehicles, Robotics, that are disrupting the technology space (often called the “up and comers” of their respective industries). Based on decades of experience and research, Gene and his team, through LOUP offers an alternative to the traditional, large-cap technology funds populated with typical FAANG stocks. Join us as we present LOUP, and discuss how the ETF seeks “Future FAANGS” and is an effective complement, or standalone, technology-focused ETF.
Rick Rieder and team think that today’s potent policy cocktail holds important implications for the path of economic growth, markets and the value of a dollar.
For the first time in a long time, there’s a conversation on Wall Street about when equities might start to feel the heat from reflation signals in the bond market.
Let's take a closer look at Friday's employment report numbers on Full and Part-Time Employment.
For the 1830s, as for the 1990s, the great change would come not in the technology of delivery systems but in the extraordinary increases in the volumes of news and financial information being delivered because of the dramatic reduction in the cost of reproducing each item of news.
The pandemic has accelerated an evolution in bond trading, and it is already making a difference for investors—if bond managers have embraced tech-enabled trading.
It’s hoped that an extra $1,400 in the pockets of everyday Americans may help support lagging U.S. consumption. We believe the stimulus, along with improved vaccine roll out, may also help support commercial air travel.
With the previous week’s short-squeeze headlines behind us, investors remained optimistic about a fiscal support package, which passed the Senate by a vote of 51-50, with Vice President Harris breaking the tie.
CIO Robert Horrocks, reviews a topsy-turvy 2020 and shares the reasons for his relative optimism for Asia and the emerging markets in 2021.
The 4th quarter of 2020 began with tremendous anxiety and divisiveness around the Presidential election. Investment markets reflected that anxiety.
Former New York Yankees star Alex Rodriguez joined the roster of wealthy celebrities backing blank-check companies with a filing to raise $500 million for Slam Corp.
Your clients have one last thing to check off on their retirement checklist: Medicare enrollment. Here is how they can de-stress the process.
Cyclically oriented value stocks could make a comeback in 2021, yet there’s still a place for durable growers in a balanced equity portfolio.
When investors talk about “the stock market” they are most often referring to an index that tracks stocks only in their home country. This “home bias” is evident when it comes to the make-up of investors’ stock portfolios. Investors around the world tend to hold mostly domestic stocks.
February begins with a stack of important economic scorecards. Among them are the last of the fourth-quarter corporate earnings reports, last week’s assessment of the 2020 gross domestic product (GDP), unemployment figures, consumer spending, as well as all the other regular reports that give us a snapshot of our recent economic history.
Corporate earnings are likely to be strong in 2021, reflecting strong consumer demand and resilient cash flows.
Advisor Perspectives, the most-read eNewsletter for financial advisors as ranked by the Erdos & Morgan “FAMOUS” Study in 2019 and 2020, has announced its Venerated Voices™ awards for commentaries published in 2020.
Emerging markets seek a sustainable solution to debts, and the Fed takes a step toward sustainability.
Nothing so animates a speculative herd as a parabolic price advance in an asset detached from any standard of value. I am convinced that future generations will use the present moment to define the concept of a reckless speculative extreme, in the same way our generation uses “1929” and “2000.”
The purpose of the Constitutional gold standard was to establish a reference point against which the prices of credits and commodities were set by the open exchange of bank notes and other promises to pay money.
As a Registered Investment Advisor (RIA), knowing how the industry will change and what tomorrow’s clients will want can make you unstoppable. At Schwab Advisor ServicesTM, our mission is to equip you with the innovative products and solutions that firms and investment advisors need to maximize their potential.
In this white paper, we paint a picture of the future of the investment industry – and how independent RIAs will thrive in it – with attention given to these specific areas:
These critical trends have put RIAs in a position to excel, and as a trusted custodian, we are here to help you seize the opportunity. Download this white paper to learn more.
Those of you with kids and grandkids may at some point have stepped inside a GameStop. If so, you might be familiar with the video game retailer’s tagline: “Power to the players.”
I’m often asked if I foresee inflation or deflation. Both are possible in their own ways, and frankly I feel a little funny telling people I think we will see both. I would just like to have a growing economy and dependable money that holds its value.
Although many companies in consumer-oriented industries continue to struggle, others have benefitted from society’s need to socially distance. Discussed here are five stocks that have successfully accelerated digital adoption through the pandemic along with three in hard-hit categories poised to thrive once coronavirus inoculations become widespread.
The rationale behind the meteoric rise of Gamestop, a chain of videogame rental stores, and AMC, one of the nation’s largest cinema operators, is too unlikely to be believed. In just one month both stocks had risen by more than 600%.
I have a problem with both growth and value demagogues.
A majority of the Senate (including two Democrats) has agreed to forego efforts to eliminate the filibuster during the Congressional term ending December 2022.
Hedge funds are slashing their stock exposure at the fastest rate in more than six years as a wave of volatility tied to some of their most-prominent bets forced a retreat from the market.
Inflation will likely heat up in the coming months, but not to worrying levels.
Precious metals in general did very well in 2020, and I expect them to keep pace in 2021, supported by heightened efforts in the U.S. and elsewhere to transition from fossil fuels to renewable energy.
As a review of the year that was, today’s report analyzes and dissects the nature of the K-shaped recovery in both the economy and stock market.
For all Millennial readers, if you visited a casino in your lifetime only to see your money quickly disappear, you have not seen anything compared to trading versus professionals. So to all you Robinhood traders I say, “Welcome to the Jungle.”
Fears unleashed by the once-in-a-century pandemic are clinging onto volatility markets even as stocks boom to record highs and Wall Street speculators gorge on every risk.
It has been my tradition to informally rate the investment-related books I read in the past year. I have also included some novels and books of general interest. Here is my list of winners and losers.
I’m going to help you get your financial advisory firm’s content strategy off the ground with a few basic steps.
In the waning days of Donald Trump’s presidency, Jeremy Grantham warned that U.S. stocks were in an epic bubble. He now predicts Joe Biden’s economic-recovery plan will propel them to perilous new heights, followed by an inevitable crash.
Read our year-ahead report to learn how this shift could lead to investment opportunities in 2021 and to understand RBA's positioning.
The decade-long onslaught inflicted by growth stocks on value investors is due to end, according to Gerard O’Reilly. But the data is too “noisy” for him to say when that will happen.
Even after the remarkable market performance of 2020, we still see potential for continued growth in 2021.
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.
The 2020s are going to be about rifle shots, not the shotgun approach of index funds.
Innovative ETFs
Emerging Markets in 2021: The Case for Increasing Exposure Now
The weak dollar, low-interest rates, and accelerating growth—these are just three of an array of factors that argue in favor of increasing your clients exposure to emerging markets.
Join us Wednesday, March 10, for a review of EM investment opportunities. Headlining our webcast panel will be Calamos Founder, Chairman, and Global Chief Investment Officer John P. Calamos, Sr. Joining John will be:
In addition to covering secular growth themes (monetary and fiscal stimulus, China’s global leadership, growth and inflation expectations, the weaker dollar, and strengthening liquidity), you’ll hear the Calamos’ take on several thematic tailwinds driving the EM opportunity, including:
We’ll conclude our discussion with a review of the differentiated approach of Calamos Evolving World Growth Fund (CNWIX), which has successfully pursued a favorable risk/reward skew through bottom-up security selection, top-down thematic analysis, and opportunistic use of less-well-known asset classes, such as convertible securities.
Technology is the New Oil: The Changing Nature of Emerging Markets
A variety of macro and fundamental factors are converging in emerging markets, signaling a period of resurgence. We believe structural changes, a supportive investment environment, and dynamic geopolitical influences make EM particularly attractive right now. For example, semiconductor production could soon become more critical to EM growth than commodities. Now may prove to be an inflection point, especially for portfolios focused on capturing this dynamic change. Please join us for an interactive webinar highlighting EM's changing nature and the added value of active management.
The Birth of Global Tech Continues
From cloud computing and automation to self-driving cars, technology continues to be one of the world’s hottest sectors. Our Chief Market Strategist Stephen Dover and Portfolio Managers Donald Huber and John Remmert believe active investing in technology and innovation is a global story, and government support and spending in next-generation technologies is likely a long-term positive.
Tech Gets Congress Antitrust Warning: ‘Change Is Coming’
House lawmakers kicked off an effort to tackle dominant technology companies, vowing a revamp of competition laws to curb their power.
Ten-Year Rate Spike Sinks Tesla and ARKK, Deepening Tech Carnage
The rout in popular technology shares accelerated after the 10-year Treasury rate spiked as much as 23 points, fueling worry that the Federal Reserve will be forced to raise interest rates.
The Only Reason To Be “Bearish” Is “No One Is Bearish”
More than 90% of investors believe the economy will be more robust in 2021, with a consensus it’s a V-shape recovery. For the first time since January 2020, chief investment officers want to increase capital spending rather than improve balance sheets.
Going Independent: A Guided Checklist to Forming Your Own RIA
Continuing our series, Going Independent, we want to provide those considering going out on their own with an easy-to-follow checklist of everything you need to do to form your own RIA.
With Tech Oligarchy Shaken, Active Funds Are Having a Great Time
Turmoil in mega-caps like Apple Inc. is stirring investor anxiety. But for professional stock pickers, it’s mostly good news when the market’s biggest companies loosen their grip.
Five Things Investors Should Know About Hydrogen
Hydrogen’s potential as an energy source is attracting renewed attention. It may take 20 years or so for the potential to be realized. But the effects are likely to be felt within the planning horizons of most long-term investors—a good reason to start thinking now about the investment implications.
Schwab Tech Smarts, Insight #1
The COVID-19 crisis has kept our industry on its toes, pushing firms and clients to find new ways to communicate and collaborate in spite of new difficulties. If anything, it has underscored how important it is to use technology to your benefit.
This case study covers how advisors like Mike McCann have used technology to automate routine tasks, stay connected with clients and colleagues, and ensure they provide responsive service for every client. His firm, Perspective Financial Services, has used technology to power growth in the face of these challenges – growth for both their clients and their firm.
In reading Mike’s story and his advice, you too can learn to apply these technology tools to your own practice and be better prepared to take on the unexpected.
We’ll cover powerful and practical tech insights and guidance, including:
Download this case study to learn how your firm can power a better client experience.
Minisode - How Digital Automation Will Drive the Next Generation of Investment Platforms
RIA technology products are not known for their efficiency, low cost or delightful user experience. Altruist is a new, seamlessly integrated digital investing platform, which results in extraordinary ROI for financial advisors and enables them to spend far more time with clients.
A Financial Advisor's Guide to Creating a Marketing Funnel
I will break down the levels of a standard marketing funnel and provide specific steps that financial advisors can take to create their own.
Renting All Your Furniture Means Never Discarding Another Sofa
Plastic-wrapped foam mattresses, dilapidated plastic shelving units, three-legged Ikea chairs—Jay Reno calls this “end-of-life” furniture. And it’s accumulating by the dumpster-full in landfills.
SPAC, Hedge Fund, Growth Stock Pain Builds in $1 Trillion Rout
Casualties are piling up across the stock market as bond yields rise.
Cathie Wood Fan Club Faces Big Test as Ark Funds Extend Rout
The biggest slide in months for Cathie Wood’s funds is testing the resolve of investors who plowed billions of dollars into one of the hottest firms on Wall Street.
Will the Energy Sector Evolve or Devolve?
The energy sector is beginning to adapt to the realities of climate change. Who is best positioned for the future?
Beating Bobby Fischer
We think this is an excellent time to ponder the thoughts of Buffett and Munger.
Using GameStop To Uncover Biases
What recently transpired in GameStop's stock was truly epic. More astonishing, though, was the ease at which a nihilistic narrative took hold in the absence of fact. To me it was telling and an opportunity to improve my thinking.
The Polar Vortex and Texas’ Municipal Power Market
About a week ago, an unprecedented polar vortex descended upon the southwestern United States. The deep cold forced power plants in Texas to take production offline, leading to rolling blackouts and leaving more than four million households without power.
Inflation Angst Is About to Rewrite the Stock Market Playbook
For bond investors, inflation is pretty much all bad news, eating into the value of future returns. For equity traders, the tidings can be less categorically awful, given the ability of certain companies to wring profits from higher prices.
Robert Shiller: U.S. Equities are Still the Place to Invest
U.S. stocks have the highest CAPE ratio of any global equity market, but they are still the place to invest. But the inventor of that metric, Robert Shiller, says that stocks are indeed risky.
Inflation Here, There and Everywhere
What a week for price data! We have been writing about the possibility of higher inflation for months now, most recently here. We have also highlighted the most likely assets to benefit from higher inflation like copper, oil and energy stocks.
Spectate or Speculate
Many investors think there are only two options in a market where participants have become overly exuberant, either 'I want in' or 'Get me out.' Our strategies are more nuanced, and we believe fit better with what we expect to transpire.
Small Change and The Depression of 1837-1843 – Part Five
That there was a price “bubble” that burst in the American political economy from 1835 to 1845 is beyond question. The challenge is to reconcile the data sets for commodity and securities prices, interest rates and production volumes with the narratives of what happened.
Random Thoughts from the Frontline
Rather than going deep into one theme, this week we will do a “Random Thoughts” from the Frontline. Today we will cover several topics in shorter form: valuations, infrastructure, the debacle in Texas, and a lot more.
Texas Freezes, but a New Commodities Supercycle Could Be Heating Up
Millions of Texans were without power this week when the state was hit with a record setting winter storm. An overhaul of its aging infrastructure would require massive amounts of metals and other materials, which would be positive for miners and producers.
As Volatility Fades, Can Cyclicals Shine?
BlackRock Global Allocation Fund portfolio manager Russ Koesterich explains why he expects volatility to drop -- and cyclicals outperform.
How To Know When To Sell A Tech Stock?
One of the most common complaints I hear from investors is that their advisors or brokers like to tell them when to buy, but never tell them when to sell. Whether those criticisms are fair or not, the sell decision is certainly the most vexing decision that investors face.
COVID 19 Disrupts Municipalities—Will Taxing Millionaires Accelerate Outmigration?
Apart from some high-profile downgrades, the muni credit markets finished 2020 buoyed by breakthrough vaccines and signs that state and local tax collections were better than anticipated.
What Vaccine Progress Means for Stock Markets
New virus variants are stoking COVID-19 angst, but we see vaccination programs opening the door to economic and market recoveries.
Cathie Wood’s ‘Phenomenal Rise’ Brings ETF Assets to $60 Billion
It’s another milestone for Cathie Wood’s Ark Investment Management. Less than two weeks after hitting $50 billion in assets, the red-hot firm now manages more than $60 billion, as funds flow into Wood’s exchange-traded funds at the fastest pace ever.
There’s Much More to Tech Investing than the US Market
Although US technology equities tend to dominate the conversation about technology investing, Franklin Equity Group’s John Remmert and Don Huber believe there are many innovative international technology companies that tend to get overlooked.
Why Printing Money May Not Create Inflation
Is inflation coming? At some point, yes. We know what generates inflation, and we will be watching for it. Until then, we do not expect a wildfire in inflation land.
Helping Clients Plan for Growth in Their Private Foundations
How can you help a family foundation plan for rapid growth in a way that is consistent with their wealth management objectives?
Student Loan Forgiveness, Super-Sized Stimulus, China-Australia Trade Tensions
Are proposed fiscal policies and student debt forgiveness too much of a good thing?
Cryptocurrency Fascination
Our Chief Market Strategist Stephen Dover believes cryptocurrency (crypto) is evolving into its next cycle of innovation. As an integral foundation for an alternative financial and internet ecosystem, crypto’s disruptions, opportunities, risks, and long-term implications are worth watching.
There is An Alternative to Crazy Expensive Tech Stocks, We Just Need to Remove the Kaleidoscope Glasses
To say the market is bubblelicious is a bit of an understatement given that retail “investment” in call options and penny stocks is quite literally off the charts, dwarfing numbers we saw in 1998-2000.
The Future of the Financial Planning Association
The Financial Planning Association, or FPA, is the principal membership organization for CERTIFIED FINANCIAL PLANNER™ professionals and those who support the financial planning process. I am joined today by the two leaders of the FPA and a veteran observer of the financial planning profession. I am looking forward to a spirited discussion about the role that the FPA will play among financial planners, the challenges it faces and how my guests plan to overcome those challenges.
The Chinese Economy Charges Ahead in the Year of the Ox
Happy Year of the Ox! Today China and a number of other Asian countries celebrate the Lunar New Year, also known as the Spring Festival.
Reports of Value's Death May Be Greatly Exaggerated
Rob Arnott: “There hasn’t been a better time to be a value investor at any other time in my career. I look back at the tech bubble and I never thought I would see valuations stretched the way they were then. We're back to that, and then some." We invite you to revisit “Reports of Value’s Death Have Been Greatly Exaggerated” now published in the Financial Analysts Journal.
Booth’s Dimensional Makes $700 Million Splash in ETF Debut
Quantitative investment firm Dimensional Fund Advisors is already making waves in the $5.9 trillion exchange-traded fund market.
Schwab Market Perspective: Disconnection
Hope is high that economic growth will accelerate as more people are vaccinated against COVID-19, but so far economic data has been lackluster. Meanwhile, bond investors are expecting inflation despite signs that the economic recovery’s momentum may be stalling. Why does everything seem so disconnected?
Bitcoin Hits Record as Mastercard, BNY Mellon Embrace Crypto
Bitcoin jumped to a record high after Mastercard Inc. and Bank of New York Mellon Corp. moved to make it easier for customers to use cryptocurrencies.
The Real Story Behind Commission Free Trading
On October 2, 2019 brokerage firm Charles Schwab announced they were no longer going to charge commissions on stock and ETF trades. Before the day closed E-Trade and TD Ameritrade followed suit. And just like that, commissions were dead.
Coleman Leads $23 Billion Payday for 15 Hedge Fund Earners
It’s more than enough money, at going prices, to buy one GameStop, two AMC Entertainments and four Bed Bath & Beyond's.
Active Semi-Transparent ETFs: What’s Under the Hood?
This is a new type of exchange-traded ETF that is built differently from a traditional ETF.
The Fed’s Blindspot
I don’t say this often, but Fed Chairman Jerome Powell is wrong. Regular readers of our investor letters and other publications will recall that we regularly cite Chairman Powell as doing the best he can with the levers he has while arguing correctly for others to do their part.
Biden Presidency Starts With a Giant Bet on Run-It-Hot Economics
Joe Biden’s administration has dedicated its first few weeks in office to spending more money on pandemic relief -- and shrugged off warnings that the economy may overheat as a result.
Lesson Learned? Takeaways From the GameStop Saga
As quickly as it soared to the moon, GameStop came back down to earth; but the lessons learned are key to turning day trading speculators into longer-term investors.
Frontier Tech Investing with LOUP
The phrase “Frontier Technology” can mean a lot of different things to different people. LOUP Ventures, led by technology guru, Gene Munster, seeks to invest in companies within areas such as AR/VR, Autonomous Vehicles, Robotics, that are disrupting the technology space (often called the “up and comers” of their respective industries). Based on decades of experience and research, Gene and his team, through LOUP offers an alternative to the traditional, large-cap technology funds populated with typical FAANG stocks. Join us as we present LOUP, and discuss how the ETF seeks “Future FAANGS” and is an effective complement, or standalone, technology-focused ETF.
What’s the Value of a Dollar?
Rick Rieder and team think that today’s potent policy cocktail holds important implications for the path of economic growth, markets and the value of a dollar.
Great Reflation Trade Brings New Threats to the Stock Rally
For the first time in a long time, there’s a conversation on Wall Street about when equities might start to feel the heat from reflation signals in the bond market.
FT Employment at Highest Percentage of Total Employed
Let's take a closer look at Friday's employment report numbers on Full and Part-Time Employment.
Small Change and The Depression of 1837-1843 – Part Four
For the 1830s, as for the 1990s, the great change would come not in the technology of delivery systems but in the extraordinary increases in the volumes of news and financial information being delivered because of the dramatic reduction in the cost of reproducing each item of news.
The Future of Bond Trading—and Why It Matters
The pandemic has accelerated an evolution in bond trading, and it is already making a difference for investors—if bond managers have embraced tech-enabled trading.
Could $1,400 Stimulus Checks Lift Air Travel Demand?
It’s hoped that an extra $1,400 in the pockets of everyday Americans may help support lagging U.S. consumption. We believe the stimulus, along with improved vaccine roll out, may also help support commercial air travel.
Weekly Market Snapshot
With the previous week’s short-squeeze headlines behind us, investors remained optimistic about a fiscal support package, which passed the Senate by a vote of 51-50, with Vice President Harris breaking the tie.
Q4 2020 CIO Review & Outlook
CIO Robert Horrocks, reviews a topsy-turvy 2020 and shares the reasons for his relative optimism for Asia and the emerging markets in 2021.
Quarterly Letter
The 4th quarter of 2020 began with tremendous anxiety and divisiveness around the Presidential election. Investment markets reflected that anxiety.
Alex Rodriguez Files to Raise $500 Million in Slam Corp. SPAC
Former New York Yankees star Alex Rodriguez joined the roster of wealthy celebrities backing blank-check companies with a filing to raise $500 million for Slam Corp.
Five Tips to De-Stress the Entree into Medicare
Your clients have one last thing to check off on their retirement checklist: Medicare enrollment. Here is how they can de-stress the process.
Using a Barbell to Strengthen Your Equity Portfolio
Cyclically oriented value stocks could make a comeback in 2021, yet there’s still a place for durable growers in a balanced equity portfolio.
Your Portfolio May Be Less Diversified Than You Think
When investors talk about “the stock market” they are most often referring to an index that tracks stocks only in their home country. This “home bias” is evident when it comes to the make-up of investors’ stock portfolios. Investors around the world tend to hold mostly domestic stocks.
Volatility Spikes; First Monthly S&P 500 Loss Since October
February begins with a stack of important economic scorecards. Among them are the last of the fourth-quarter corporate earnings reports, last week’s assessment of the 2020 gross domestic product (GDP), unemployment figures, consumer spending, as well as all the other regular reports that give us a snapshot of our recent economic history.
Asia’s Corporate Earnings May Surprise on the Upside
Corporate earnings are likely to be strong in 2021, reflecting strong consumer demand and resilient cash flows.
Venerated Voices™ 2020 Rankings
Advisor Perspectives, the most-read eNewsletter for financial advisors as ranked by the Erdos & Morgan “FAMOUS” Study in 2019 and 2020, has announced its Venerated Voices™ awards for commentaries published in 2020.
Emerging Market Debt Problems, Fed Exploring Climate Change, Bitcoin Skepticism
Emerging markets seek a sustainable solution to debts, and the Fed takes a step toward sustainability.
Detached Parabolas and Open Trap Doors
Nothing so animates a speculative herd as a parabolic price advance in an asset detached from any standard of value. I am convinced that future generations will use the present moment to define the concept of a reckless speculative extreme, in the same way our generation uses “1929” and “2000.”
Small Change and The Depression of 1837-1843 - Part Three
The purpose of the Constitutional gold standard was to establish a reference point against which the prices of credits and commodities were set by the open exchange of bank notes and other promises to pay money.
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Power to the Players: Reddit, Robinhood and Bitcoin
Those of you with kids and grandkids may at some point have stepped inside a GameStop. If so, you might be familiar with the video game retailer’s tagline: “Power to the players.”
Inflation and Broken Windows
I’m often asked if I foresee inflation or deflation. Both are possible in their own ways, and frankly I feel a little funny telling people I think we will see both. I would just like to have a growing economy and dependable money that holds its value.
Disruptive Companies Thriving in the Time of COVID
Although many companies in consumer-oriented industries continue to struggle, others have benefitted from society’s need to socially distance. Discussed here are five stocks that have successfully accelerated digital adoption through the pandemic along with three in hard-hit categories poised to thrive once coronavirus inoculations become widespread.
Springtime for Gamestop
The rationale behind the meteoric rise of Gamestop, a chain of videogame rental stores, and AMC, one of the nation’s largest cinema operators, is too unlikely to be believed. In just one month both stocks had risen by more than 600%.
Value and Growth Demagogues
I have a problem with both growth and value demagogues.
The Filibuster and the 2021 Legislative Agenda
A majority of the Senate (including two Democrats) has agreed to forego efforts to eliminate the filibuster during the Congressional term ending December 2022.
Hedge Funds Slashing Equity Exposure at Fastest Pace Since 2014
Hedge funds are slashing their stock exposure at the fastest rate in more than six years as a wave of volatility tied to some of their most-prominent bets forced a retreat from the market.
Some Worries May Be Inflated
Inflation will likely heat up in the coming months, but not to worrying levels.
Precious Metals Outlook 2021: Renewable Energy Will Be a Key Driver
Precious metals in general did very well in 2020, and I expect them to keep pace in 2021, supported by heightened efforts in the U.S. and elsewhere to transition from fossil fuels to renewable energy.
Bridging the Gap(s): Converging and Diverging Trends Stemming From the Crisis
As a review of the year that was, today’s report analyzes and dissects the nature of the K-shaped recovery in both the economy and stock market.
Welcome to the Jungle
For all Millennial readers, if you visited a casino in your lifetime only to see your money quickly disappear, you have not seen anything compared to trading versus professionals. So to all you Robinhood traders I say, “Welcome to the Jungle.”
VIX Is Sounding Alarms While Greed Engulfs Global Markets
Fears unleashed by the once-in-a-century pandemic are clinging onto volatility markets even as stocks boom to record highs and Wall Street speculators gorge on every risk.
The Best and Worst Investment (and other) Books of 2020
It has been my tradition to informally rate the investment-related books I read in the past year. I have also included some novels and books of general interest. Here is my list of winners and losers.
How to Develop a Content Strategy
I’m going to help you get your financial advisory firm’s content strategy off the ground with a few basic steps.
Grantham Warns of Biden Stimulus Further Inflating Epic Bubble
In the waning days of Donald Trump’s presidency, Jeremy Grantham warned that U.S. stocks were in an epic bubble. He now predicts Joe Biden’s economic-recovery plan will propel them to perilous new heights, followed by an inevitable crash.
2021: Embrace the Profits Cycle
Read our year-ahead report to learn how this shift could lead to investment opportunities in 2021 and to understand RBA's positioning.
Gerard O’Reilly on the Future of Value Investing
The decade-long onslaught inflicted by growth stocks on value investors is due to end, according to Gerard O’Reilly. But the data is too “noisy” for him to say when that will happen.
Open the Door to Optimism for 2021
Even after the remarkable market performance of 2020, we still see potential for continued growth in 2021.
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.