Take the Concentration Risk out of the S&P 500
As the S&P 500 has grown ever more top-heavy, many investors in products tied to the Index have found themselves facing historic levels of concentration risk, the likes of which passive investors have not seen since 1970. The five largest companies have grown to account for nearly 22.0% of the index, potentially leaving investors vulnerable if the companies’ current high valuations fall back to earth. In this session, Invesco will discuss why an equal weight approach to investing in the S&P 500 may provide diversification benefits and reduce concentration risk.
US Birth & Fertility Rates Hit New Record Lows: Why?
The US Centers For Disease Control and Prevention reported last week that the US birth rate plunged for its sixth consecutive year in 2020. The US fertility rate also hit a new record low. Demographers are puzzled at this potentially troubling trend...
SPACs: What Are They, and Are They a Risk to the Market?
Special purpose acquisition companies (SPACs)—also known as blank-check companies—have gained immense popularity among investors since the beginning of 2020, despite being around for decades.
Will COVID-19 Accelerate Euro-Area Integration?
Widespread lockdowns have resulted in record output declines and soaring debt across the euro area. But the political response to the COVID-19 crisis may be positive for the European integration project—and for euro-area bond markets.
Examining the Environment for Microcap Stocks
The smallest companies in the market may be overlooked by many investors, but can offer big potential. Here, we posed some questions about micro-capitalization (microcap) stocks to Franklin Mutual Series Portfolio Manager Oliver Wong, who explains how they have fared recently and where he’s finding opportunities.
Middle-Class Wages in April 2021
We've updated this series to include the April release of the Consumer Price Index as the deflator and the monthly employment update. The latest hypothetical real (inflation-adjusted) annual earnings are at $43,774, down 5.7% from 45-plus years ago.
Consumer Price Index: April Headline at 4.16%, Largest Increase Since 9/2008
The Bureau of Labor Statistics released the April Consumer Price Index data this morning. The year-over-year non-seasonally adjusted Headline CPI came in at 4.16%, up from 2.62% the previous month. Year-over-year Core CPI (ex Food and Energy) came in at 2.96%, up from 1.65% the previous month and above the Fed's 2% PCE target.
Concentrating on Success
Outperforming the market, requires looking different than the market. Actively managed, concentrated portfolios are one way to help diversify risk while adding to alpha potential and can be a welcome complement to passive allocations. At Diamond Hill, our equity strategies range from concentrated to highly concentrated—learn more about two of our highly concentrated strategies: Large Cap Concentrated and All Cap Select.
Demographic Trends for the 50-and-Older Work Force
Note: This commentary has been updated with the latest numbers from last Friday's Employment Report. Consider: Today nearly one in three of the 65-69 cohort and one in five of the 70-74 cohort are in the labor force.
U.S. Workforce: April 2021 Update
We've updated our monthly workforce analysis to include last Friday's Employment Report for April. The unemployment rate inched up to 6.1%, and the number of new nonfarm jobs (a relatively volatile number subject to extensive revisions) came in at 266K.