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Results 101–150
of 196 found.
Labor Markets Looking for a Spring Blossom
by Chris Maxey, Ryan Davis of Fortigent,
With an unusually harsh winter finally ending, economists were excited to see if labor markets would rebound in March. By many accounts, they were left wanting for more, but the underlying theme in the March report was consistent, steady job growth.
A Look at First Quarter Market Performance
by Chris Maxey, Ryan Davis of Fortigent,
As the first quarter draws to a close, equity markets appear poised to finish in positive territory despite a somewhat tumultuous news environment. As noted by Bloomberg, save for a sharply negative Monday period, the S&P 500 will close out a fifth consecutive quarter in positive territory for the first time since 2007.
Janet Yellen Enters the Picture
by Chris Maxey, Ryan Davis of Fortigent,
After bursting onto the scene earlier this year, Janet Yellen held her first official FOMC meeting last week. Rather than upset the apple cart, she held a largely status quo stance, but several comments raised more than a few questions.
Currency Markets Heat Back Up, and Will Likely Remain that Way
by Chris Maxey, Ryan Davis of Fortigent,
Long dormant after the financial crisis, foreign exchange markets are beginning to heat up, offering ample trading opportunity for asset managers. The U.S. dollar was widely viewed as being the best long trading opportunity for 2014, but so far, that has not played out, with activity in the Euro, Chinese Yuan, and other currencies impeding dollar strength.
Tech Bubble 2.0?
by Chris Maxey, Ryan Davis of Fortigent,
The $19 billion acquisition of WhatsApp by Facebook in late February put an exclamation point on several high profile takeovers in the technology space in recent months. Sizeable deals such as Google?s $3 billion acquisition of Nest and Facebook?s $3 billion offer for SnapChat have fueled the idea that an indiscriminate buying spree in the technology space a la 1999 could set up financial markets for another valuation bubble.
A Consumer Releveraging Renaissance?
by Chris Maxey, Ryan Davis of Fortigent,
After a long period of deleveraging, there are appearances that consumers are entering a stage of releveraging. The devil is always in the details, though, and this releveraging cycle is likely to play out vastly different than those of previous expansions.
Time to Worry About Europe Again?
by Chris Maxey, Ryan Davis of Fortigent,
The European sovereign debt crisis has all but faded from investors? minds since ECB President Mario Draghi?s famous pronouncement on July 26, 2012 that he would do ?whatever it takes? to save the monetary union. Since that time, equity markets in Europe rallied sharply as accumulated risk aversion fell away.
Was the labor report positive, or negative, anyone?
Stocks were modestly positive last week following three straight weeks of negative performance. Markets crawled back following an ugly Monday in which the S&P 500 suffered its worst loss in more than seven months. For the week, the S&P rose 0.9% while the Dow Jones Industrial Average added 0.7%.
Investors Should Focus on Wages, Not Jobs
by Chris Maxey, Ryan Davis of Fortigent,
This Friday investors receive the first official labor market report of 2014. Following a highly disappointing jobs figure in December, many market participants hope to see a rebound - particularly one that will help justify the Feds decision last week to continue tapering its asset purchases.
An Active Management Turning Point?
by Chris Maxey, Ryan Davis of Fortigent,
Active managers faced a difficult road in recent years, leading to many questions about the efficacy of active versus passive investment management. There are signs that the tide is once again changing in favor of active managers and the road ahead could offer happier times.
Commodities Remain a Source of Frustration
by Chris Maxey, Ryan Davis of Fortigent,
The environment following the global financial crisis has been a challenging one for asset allocators, as long held relationships shifted and traditional idioms were turned on their head. As we detailed last week in "The Diversification Obituary," investors have seen little work in their portfolios other than US stocks, while supposed diversifiers have offered little more than muted beta and unusually high correlations.
The Diversification Obituary
by Chris Maxey, Ryan Davis of Fortigent,
According to some major media outlets, 2013 was the year diversification died. With the S&P 500 racing to a more than 30% gain (the largest since the late 90s), it seemed as though no other asset class truly mattered last year. While it is true domestic equities had a banner year, one-asset class portfolios will never be robust, and there is reason to believe 2013 is a prime example of why diversification is incredibly important.
Is 2014 the Year That Alternatives Matter Again?
by Chris Maxey, Ryan Davis of Fortigent,
In the wake of the financial crisis of 2008, investors piled into alternative investments en masse to help insulate their portfolios from another dramatic market decline. For those who had not yet bought into the idea of improving portfolio risk-adjusted returns, the 50% drawdown in the S&P 500 provided all the convincing needed.
Will 2014 Bring an End to Central Bank Intervention?
by Chris Maxey, Ryan Davis of Fortigent,
Nearing the final two weeks of the year, it is customary to look forward to the trends and events that will shape the coming year. A theme that may come to the fore in 2014 revolves around central bankers, specifically the diverging fates in various economies of the world.
Gauging Tapering Post November Jobs Report
by Chris Maxey, Ryan Davis of Fortigent,
With another month down in 2013, last week came time to dissect the latest report on employment. If the market reaction was indicative, the highly anticipated November labor report did not disappoint, sending stocks up more than 1% on Friday.
Fixed Income Markets Slog Forward
by Chris Maxey, Ryan Davis of Fortigent,
The past five years have seen a dramatic influx of investor capital into corporate credit markets. As investors jumped into the market, there is growing concern that credit markets are nearing stretched valuations. Those concerns are likely premature, particularly with central bank intervention in place.
Where Will the Holiday Shopping Season Lead Us This Year?
by Chris Maxey, Ryan Davis of Fortigent,
The unofficial start to the holiday shopping season kicks off in a few short days. Economic uncertainty abounds, raising fears that consumers will pull back from spending, but some positive developments suggest consumers will be just fine.
Currency Markets Show Signs of Reversal
by Chris Maxey, Ryan Davis of Fortigent,
A mixture of surprising economic data and changing central bank policy led to sharp moves in currency markets last week. This came after several gyrations in FX markets earlier this year. Looking forward, volatility is likely to remain, but many signs point towards a strengthening U.S. dollar.
Ex-US Property Bubble Peaking?
by Chris Maxey, Ryan Davis of Fortigent,
For several years now, a common storyline on China was the immense overcapacity in the countrys housing market. A mixture of easy credit policies and officials explicit economic growth plans based on capital investment yielded construction on a massive scale across the countryside. So-called ghost towns emerged as the pace of building and the migration of rural citizens into these cities fell out of sync.
Jobs, Jobs, Jobs
by Chris Maxey, Ryan Davis of Fortigent,
Following an extended delay, investors were disappointed (sort of) to learn that the September payroll report was another dud. The headline figure was below expectations, but investors were largely comforted by knowing this likely extended QE3 further into the future.
Earnings Season Hides in the Government Shadow
by Chris Maxey, Ryan Davis of Fortigent,
Lost in all the discussion about Washington is the fact earnings season is in full swing.It is shaping up to be another interesting reporting season, on account of volatility in the markets and economy.So far, companies are beating expectations, but the broader trend is lower.
US Default: How Bad Would It Be?
by Chris Maxey, Ryan Davis of Fortigent,
Treasury Secretary Jack Lew has publicly declared October 17 this Thursday as the date when the US government would no longer be able to pay its bills, should Congress not reach a budget resolution.A once unthinkable outcome is becoming all too close to reality due to brinksmanship in Washington.For the second time in two years, investors have had to contemplate just how such a situation would shake out for financial markets.
Europe Pokes Its Head Out From the Shadows
by Chris Maxey, Ryan Davis of Fortigent,
With all the focus on affairs in the US, China and developing nations, Europe has largely been given a free pass in recent months. The lack of attention gave Europe the opportunity to fix some of its troubles, but challenges remain and are likely to surface in the weeks ahead.
Has the Fed Lost Its Credibility?
by Chris Maxey, Ryan Davis of Fortigent,
Any economics student will tell you central banks must achieve three things to effectively implement monetary policy: (1) independence; (2) credibility; and (3) transparency.For most of the Feds history, the first two characteristics were arguably well attained.However, the group was never well known for clarity into its thinking.
Consumers Face An Economy at a Crossroads
by Chris Maxey, Ryan Davis of Fortigent,
As the Federal Reserve prepares to debate the merits of tapering its asset purchase program this week, a key area of the economy that will be closely analyzed by Bernanke and Co. is the health of the American consumer. There are tenuous signs that consumers are spending more, but attitudes towards the economic recovery are hardly encouraging. Consumers will find it difficult to stay the key cog of economic growth in the U.S., but at the very least, their participation in the recovery is imperative, and leaves much to be desired.
Market Technicals Signal Trouble Ahead
by Chris Maxey, Ryan Davis of Fortigent,
Bear market enthusiasts have so far been disappointed in September after the sudden market rally last week. With equities up more than 1% on the month, many bears pointed to the historically poor performance of equity markets during this month as a reason to remain cautious. Bear enthusiasts need not fear, as markets appear to be converging toward an inflection point right around the Fed meeting in the middle of the month.
Fixed Income - Where to Now?
by Chris Maxey, Ryan Davis of Fortigent,
Since the end of the Global Financial Crisis (GFC), investors moved aggressively into fixed income asset classes. They were quickly rewarded in the years following the crisis with a combination of falling interest rates and tighter credit spreads, which led to positive absolute returns. The easy money in fixed income is gone, however, and now is the time for careful asset class selection.
Will Rate Rise Derail Housing Recovery?
by Chris Maxey, Ryan Davis of Fortigent,
As the Federal Reserve grapples with when and how to unwind quantitative easing, interest rates climbed more than a point since the end of 2012. This caused mortgage rates to increase to their highest levels in two years last week, with the average conforming 30-year loan jumping to 4.58% from 4.40% the week prior. Rising financing costs is presenting a headwind for one of the biggest bright spots in the US economy over the past 12 months.
Change is Coming
by Chris Maxey, Ryan Davis of Fortigent,
The summer months brought a period of calm to global markets and economies. Nearing the move to autumn, it is time to look ahead and see what resides on the horizon. Investors could be due for a renewed bout of volatility based on any number of events set to happen before year-end.
China Struggles to Fight the Trend
by Chris Maxey, Ryan Davis of Fortigent,
Prior to the global financial crisis, decoupling was the word du jour. In the years since the crisis began, however, decoupling has vanished from the everyday lexicon. In recent weeks, the financial media noticed a new form of decoupling, one that shows improving growth prospects in the developed world but slower growth in developing economies. Rightly or otherwise, much of that slowdown is pinned on China and recent data continues to suggest a slower pace of growth than investors became accustomed to in prior decades.
Low Quality Jobs Recovery Continues in July
by Chris Maxey, Ryan Davis of Fortigent,
In a busy week of economic data, investors ended the week on a mixed note.The government jobs report revealed a labor market experiencing steady if not unspectacular growth, as nonfarm payrolls came in below consensus estimates while the unemployment rate surprised to the upside.
Emerging Markets: Undervalued or Value Trap?
by Chris Maxey, Ryan Davis of Fortigent,
In the first quarter, we explored the divergence of emerging market equities from the US. We noted that a combination of factors likely drove the 12% performance differential, including investor risk appetites, inflationary pressures in developing markets, and reduced commodity price expectations.
Hedge Funds Can Advertise...But Should They?
by Chris Maxey, Ryan Davis of Fortigent,
In April 2012, the Jumpstart Our Business Startups (JOBS) Act was signed into law. The legislation eased a number of regulatory burdens on small businesses and private industry in a bid to boost job growth. The bill made additional headlines for lifting an 80-year ban on solicitation for private placements, the restriction that prevented hedge funds from advertising their wares to the general public.
High Yield Munis: Risky Business
by Ryan Davis, Jingwei Lei of Fortigent,
We shine a spotlight on the obscure market of high yield municipals this week. In the current fixed income selloff, the market has been among the worst performing with a drawdown of 6.1%. Investors could not get enough of the sector in 2012 as they chased yield; the Barclays high yield muni index returned over 18%. Investor sentiment has turned sharply, however, on this asset class. Funds experienced significant outflows over the last couple of months, which is especially troubling for a small and retail dominated market. Why did this onetime darling asset turn into a pariah so abruptly?
Investors Gear Up for Earnings Post-Taper
by Chris Maxey, Ryan Davis of Fortigent,
Following a few weeks of FOMC-induced turmoil, investors are looking forward to getting back to the fundamentals.Second quarter earnings season are set to kick off July 8 with Alcoa, in what will mark an important reporting period for financial markets.Given the now much telegraphed intentions of the Fed, investors are scrutinizing whether the US economy and corporate sector is ready to stand on its own feet.
Is Fixed Income the New Equity?
by Chris Maxey, Ryan Davis of Fortigent,
After several decades of positive returns, fixed income investors are being treated to a rude awakening in the last six weeks. Recent comments from Federal Reserve officials suggest a sooner than anticipated exit from quantitative easing, raising the prospect of higher interest rates. Throughout the universe of fixed income assets, investors are questioning the future return potential, leading many to wonder, what now?
Unconstrained Bond Funds Fail to Deliver
by Chris Maxey, Ryan Davis of Fortigent,
There have been an incessant number of articles in the past year addressing a Great Rotation by investors the seismic shift in asset allocation predicted to result from a transition to a rising rate environment. Individual investors spoiled by a 30-year secular decline in interest rates, it is thought, will run to new alternatives in the face of this structural headwind for a significant chunk of their portfolios.
Risk Parity - New Thinking or New Packaging?
by Chris Maxey, Ryan Davis of Fortigent,
Ever since Harry Markowitz brought forth the notion of mean-variance optimization in 1952, academics and practitioners alike have sought ways to build more robust asset allocation methodologies. Recently, the most talked about approach in the institutional world is risk parity, which seeks to focus on risk as its primary input. Risk parity is intuitively appealing, but suffers many pitfalls that investors need to consider.
Does Sector Shift Spell A Continued Rally?
by Chris Maxey, Ryan Davis of Fortigent,
Unlike most robust equity rallies, however, 2013 performance was initially led by traditionally defensive sectors, such as health care, utilities, and consumer staples. Through the first quarter, those three sectors posted an average return of 14.5%, while traditional cyclicals averaged just 9%. While some speculated this trend was due to investors reach for yield amid a frothy fixed income environment, the magnitude of this sector leadership (in an up move) was certainly unusual.
Is the Fed in the Home Stretch?
by Chris Maxey, Ryan Davis of Fortigent,
Global equity markets stammered through a choppy environment last week following increased fears that certain central banks were considering the possibility of pulling stimulus sooner than anticipated. Markets have long been dependent on central banks, but the notion that policymakers could head for the exits leaves investors unsure how to react.
Why the Lack of Inflation Is a Problem
by Chris Maxey, Ryan Davis of Fortigent,
Given the outsized role central banks are playing in todays financial markets, inflation watching has taken on increased significance.It is widely assumed that continued easy money policies are only possible as long as price increases remain under control.At the same time, for a global economy trying to escape an extended period of weak growth and burdensome debt loads, low inflation is a double-edged sword.
Housing Finally Breaks Free
by Chris Maxey, Ryan Davis of Fortigent,
Housing, which for so many years represented everything bad about the credit crisis, is finally beginning to have its day back in the sun. Trends in housing markets around the country are improving, to the benefit of the overall economy. It appears that trend is set to continue.
Is May Really the Time to Go Away?
by Chris Maxey, Ryan Davis of Fortigent,
As investors near the witching hour of May, the oft-asked question once again comes to the foreground is it best to sell in May and walk away? This year could prove the exception to recent history, but a number of trends are beginning to take shape inside the markets inner workings.
Q1 Earnings Leave Much To Be Desired
by Chris Maxey, Ryan Davis of Fortigent,
Following the strongest first quarter in 15 years, it is not surprising to see equity markets faltering in April. Last weeks decline of 2.1%, however, may reflect deeper concerns about corporate fundamentals amid a mixed earnings season.
Tax Day as Polarizing as Ever
by Chris Maxey, Ryan Davis of Fortigent,
Tax season is once again upon the American population, and this year, just as in years past, people are less than enthusiastic. It is estimated that the average taxpayer contributed slightly more than $11,000 dollars to federal taxes in 2012 and those figures are on the rise. As might be expected in the current backdrop, however, not everyone shares the same opinion on taxes.
Labor Markets Stumble in March
by Ryan Davis, Chris Maxey of Fortigent,
In an unexpected development, labor markets fell flat during March. Following several months of healthy job growth, the economy was only able to muster 88,000 new jobs in March, well below economists expectations for nearly 200,000 jobs.
Is the Vix Still an Adequate Measure of Risk?
by Chris Maxey, Ryan Davis of Fortigent,
The 30-day implied volatility index for the S&P 500 calculated by the Chicago Board of Options Exchange (CBOE), known as VIX, has long been used as an indicator of market sentiment. Commonly referred to as the fear index, the VIX often portends periods of stress in equity markets, as options traders price in higher volatility in the future. The shape of the VIX futures curve, in particular, has historically been used as an indicator of future volatility levels.
Results 101–150
of 196 found.
