November 15, 2018 Is the New Brexit Deal Already Dead? by Darren Williams With cabinet ministers resigning by the hour, it’s tempting to think that British Prime Minister Theresa May’s Brexit deal with the European Union (EU) is dead on arrival, and that a hard Brexit is now the most likely way forward. But some form of soft Brexit is still the most likely scenario, in our view. Economics, Policy & Regulation, Understanding Brexit Likes 1 SHARE Bookmarks
November 13, 2018 Bank Loan Run May End Soon When it comes to US high-yield bank loans, we don’t mince words: we think the risk rarely justifies the potential reward. Fixed Income, Rising Rates Likes 1 SHARE Bookmarks
November 13, 2018 Market Sell-Off Shows Risk Is a Moving Target by Kent Hargis, Sammy Suzuki, Chris Marx Recent volatility reminds us that new risks are testing standard defensive equity strategies. Portfolios that offer downside protection need to go beyond standard risk models and position themselves for changing challenges ranging from trade wars to European political instability. Equities, Trade Wars, Volatility Likes 0 SHARE Bookmarks
November 12, 2018 Will Energy Bonds Hold Up in a Volatile Oil Market? by Will Smith, Gershon Distenfeld A dramatic fall in oil prices, followed by a sell-off in high-yield energy bonds—is it time to worry about oil and gas companies again? Quite the contrary. The North American issuers that make up most of the world’s high-yield energy market are in a better position today than they have been in years. Asset Allocation, Fixed Income, Volatility Likes 1 SHARE Bookmarks
November 07, 2018 What Does a Divided US Congress Mean for the Economy and Markets? by Erin Bigley, Scott Krauthamer Democrats took the House of Representatives. Republicans held the Senate. What should investors expect from the US midterm election outcome? In the way of policy, not much. But the new political landscape may be good for markets. Economics, Equities, Fixed Income, Policy & Regulation Likes 0 SHARE Bookmarks
November 07, 2018 Smoke and Mirrors: Earnings Flatter US Stock Valuations by Frank Caruso, Adam Yee After October’s sharp market declines, many investors might think US stocks look relatively cheap again. But equity valuations require closer scrutiny, and earnings metrics might be distorting the fundamental performance of businesses. Equities Likes 0 SHARE Bookmarks
November 06, 2018 Benefits of Bonds When Rates Are Rising by Erin Bigley Rates have been going up. So have cash yields. But don’t shift your long-term bond allocation into cash. Over most time horizons, bonds are the better choice for investors without short-term liquidity needs. Asset Allocation, Fixed Income, Rising Rates Likes 0 SHARE Bookmarks
November 06, 2018 Value Stocks Show Signs of Awakening by Avi Lavi, Takeo Aso, Tawhid Ali Value stocks have underperformed for years. But things may be changing. Cheaper stocks have shown signs of awakening recently, and several market forces could tip the scales in favor of value after a prolonged growth surge. Equities, Rising Rates Likes 0 SHARE Bookmarks
November 01, 2018 Red Wave/Blue Wave? Thoughts on the US Election by Eric Winograd What might the US midterm election results mean for fiscal policy and financial markets? Probably not much if Democrats and Republicans end up splitting control of Congress. But a sweep by either party could lead to very different outcomes. Economics, Equities, Fixed Income Likes 0 SHARE Bookmarks
October 25, 2018 Looking Beyond the Equity Market Sell-Off by Eric Sprow, Scott Krauthamer The intensifying global equity sell-off this week has rattled many investors. More turbulence can be expected in the short term, but the recent volatility isn’t particularly extreme in historical perspective, and long-term market fundamentals still look solid. Equities, Volatility Likes 1 SHARE Bookmarks
October 25, 2018 Living the Retirement Dream? by Jennifer DeLong Retirement reality for many Americans may not be as grim as forecasters predict. Could it be better? Yes. But many retirees in our new survey see a glass that’s more than half full. Multi-Asset, Target-Date Solutions Likes 0 SHARE Bookmarks
October 24, 2018 Crowded Trades, Liquidity Problems and Tech Solutions by Gershon Distenfeld, Douglas J. Peebles, Scott DiMaggio, Jeff Skoglund, James Switzer Crowded trades have become all too common in fixed-income markets. But running with the crowd is risky, particularly when it comes to illiquid assets like bank loans that may not be easy to sell during a market downturn. Fixed Income Likes 1 SHARE Bookmarks
October 16, 2018 Bond Managers Power Up for the Digital Future by Gershon Distenfeld, Scott DiMaggio, Jeff Skoglund, James Switzer The digital revolution took its time getting to fixed income, but today it’s transforming the investing landscape. Already, major advances in technology are helping early adopters gain unique insights and act faster in markets where speed and alpha are increasingly and inextricably linked. Fixed Income Likes 0 SHARE Bookmarks
October 11, 2018 Will US Yields Continue to Climb? US Treasury yields have risen in response to strong economic growth. In the first week of October, the yield on the 10-year bond surged to its highest level in more than seven years. The question is: Do yields have more room to run? Fixed Income, Rising Rates Likes 0 SHARE Bookmarks
October 08, 2018 How Low Can Emerging Markets Go? by Sharon Fay Emerging-market (EM) stocks fell in the third quarter and continued to diverge sharply from developed-market equities. While it may be too soon to buy into the weakness, investors should watch for signs that could herald a quick rebound. Emerging Markets, Equities Likes 0 SHARE Bookmarks
October 02, 2018 NAFTA 2.0: A Bold New Beginning? Or a Modest Rewrite? by Eric Winograd The revised NAFTA deal relieves uncertainty for Canada and avoids a possible Mexican barrier to ratification. But what does it really mean for the three countries involved—or for trade tension with China? Economics, Trade Wars Likes 0 SHARE Bookmarks