The Fed is executing its playbook according to plan – get interest rates up quickly, keep tightening albeit at a more moderate pace, and then hold rates steady to allow real rates to nudge higher as inflation recedes.
Japan may uniquely benefit from a wage-price spiral.
Falling airfare prices in the U.S. don’t appear to have any effect on airlines’ revenue, according to Goldman Sachs. In fact, Delta just reported record revenue and profits in the June quarter.
The continued rally in equity markets seems to be slowly reaching its crescendo. While the fundamentals have been screaming bearishly for some time now, there have been a number of structural factors at play driving markets higher in spite of these headwinds.
Wealthy market participants are flocking to this asset class in a significant fashion. Investors that have waded into the cryptocurrency space in incremental fashion and those building currently-small grubstakes may find this encouraging.
The second quarter was characterized by a debt ceiling showdown (which perversely provided a boost to liquidity) and by a big spurt in tech stocks.
Among emerging-market countries, the Wasatch investment team remains most constructive on India. We’ve written about how trends such as digitalization, financialization, formalization and industrialization continue to push its economy forward. A recent visit to India allowed us to see how those trends are evolving and visit portfolio companies.
There is much debate as of late on the current market cycle. Is it a bear market? Maybe. But what if this is just a correction within a 40-year-long secular bull market cycle?
Nikko Asset Management presents an analysis of global market trends, offering insights into the surprising performance of equities and the resilience of the global economy to date.
Over the past two years, higher inflation has led to a higher return hurdle for investors who have established real return objectives, making it harder for them to achieve their return objectives over the short term. But is this likely to be the case over the long term as well?
With the highest yields in years, the muni bond market looks increasingly attractive.
Ed Mills, Managing Director, Washington Policy, discusses how recent U.S. policy decisions are the foundation for an industrial renaissance aimed at building up the economic base and protecting it against certain geopolitical and supply chain risks.
VettaFi’s Fixed Income Symposium, happening on July 24th, is fast approaching. The symposium will bring together industry thought leaders.
As summer temperatures peak, inflation just won't completely cool down. The question is how much more the Federal Reserve should do about it.
The market, and maybe all of us, would like to believe the latest 3% annual CPI number was a harbinger of ever-lower inflation, and we are on the road to 2% inflation by year end. I would argue, “Not so fast.” Inflation is far from dead, and CPI will likely go slightly up between now and the end of the year.
In what's quickly become one of my favorite annual traditions at Russell Investments, I survey our associate base for their summer reading recommendations every year around this time.
In general, compounding refers to the process of something growing or accumulating over time, by successively building upon previous growth. Think of compounding like a snowball: It starts small, but as it rolls downhill, it becomes gigantic.
With inflation still front and center and tight labor markets, how will central banks react to the challenging market environment?
The Securities and Exchange Commission (SEC) could finally change its tune regarding spot Bitcoin exchange traded funds. A notable rally in the largest cryptocurrency fueled speculation. And data indicate large institutional players are increasing their Bitcoin holdings.
While this is a market estimate and in no way guaranteed, let’s just pretend for a minute that there is a 100% chance of this coming true and the FOMC is going to raise the Fed Funds rate by an additional 50 basis points.
To provide some insights into what is going on with AI, we use data pulled from LOGICLY to gain an in-depth perspective on the three-month performance of the two largest AI-focused ETFs.
While we agree with the enthusiasm for AI that has helped the market rally, investors may be better served by patience than by chasing recent risk-on sentiment.
Now that short-term Treasury yields have reached 5%, further upside is likely to be limited.
Portfolio manager Shuntaro Takeuchi says Japanese equities, for so long a market of false dawns, may now be stirring up investment opportunities that finally present Japan as a long-term growth market.
Does stock risk decline the longer the holding period is? It’s a great question and something I received a comment about.
Yesterday, we got a 3.0% inflation reading, which was a touch below expectations. Markets responded about as you might expect.
Jeff and Ron Muhlenkamp provide an update on the possibility of a U.S. recession, analysis of the Fed’s fight against inflation, and a report on the stock market.
Millions of young Americans will face the end of the student loan payment moratorium this summer. Why is this happening now, after a three-year break from payments?
What a year it has been for financial markets. There have been several negative factors in play, including a high-single-digit inflation print, the ongoing war in Ukraine, and several regional bank failures. Nonetheless, the S&P 500 finished the second quarter up 17 percent for the year. Go figure!
In this article, we will explore the performance and characteristics of key ETFs representing the semiconductor and technology categories, respectively, using advanced data analytics tools provided by LOGICLY.
Municipal bonds posted positive absolute and relative performance in June. Modest primary and secondary supply was outpaced by improved demand. While July has historically been a top-performing month, we maintain some near-term caution.
Artificial intelligence has quickly become a hot topic around dinner tables and in corporate boardrooms. But delivering business benefits from AI will take time. Investors should proceed with caution.
Chief Economist Eugenio Alemán and Economist Giampiero Fuentes note that while it is taking longer to bring inflation down, the Fed will continue to conduct monetary policy to reach its target rate.
Against the backdrop of the funds' goal of long-term capital appreciation, we aim to generate excellent financial performance that is fueled in part by the strategic sustainability focus of the companies in which we invest.
In his latest paper, James Montier lays out a framework for spotting what he terms “slow burn Minsky moments,” or the economic vulnerabilities associated with the build-up of private sector debt.
Formed in 2017, the firm is headed by ETF visionaries Bruce Bond and John Southard, founders of PowerShares ETFs, one of the largest ETF providers in the world.
Drawing on data from LOGICLY, this article will dive into the Treasury ETFs that boast the highest YTD inflows, shedding light on some of their standout features and key characteristics.
Tech giant Microsoft is on a mission to use technology to solve some of the world’s most pressing problems.
Factor investing can help drill through broad sector labels to help investors better understand past performance and expected returns.
Prior to 2008, when the Federal Reserve ran a “scarce reserve” monetary policy, just about every bank in the US had a federal funds trading desk. These trading desks lent and borrowed federal funds (reserves) amongst each other.
Chief Economist Eugenio J. Alemán discusses current economic conditions.
An upturn in residential activity may be the next inflation challenge.
Global equity markets have had a very strong first half of the year, but it’s a pretty unusual time because, on the one hand, equities are contending with a pretty difficult macro backdrop.
Led by the Federal Reserve’s campaign of increasingly large hikes, interest rates have risen meaningfully year-to-date. Conventional wisdom would guide investors to sell fixed income — a reflection of one of the most fundamental relationships in the investment world: as rates go up, their investments go down.
Economic indicators are released every week to help provide insight into the overall health of the U.S. economy. In this article, we cover three of the most important economic releases from the past week: the BLS employment report, job openings, and labor turnover (JOLTS), and the ADP employment report.
Higher expected corporate earnings mask broad pressure under the surface. We see more earnings pain ahead and look for opportunities at the sector level.
The tech sector was the MVP of the first half. Tech is likely to maintain All-Star status in the second half.
We’re tactically cautious on developed-market equities with a broadly risk-off stance, but we have a relative preference for emerging-market (EM) stocks over a 6- to 12-month horizon.
Income-driven repayment will ease the burden of resuming student loan payments.
The recent collection of labor data has painted a mixed jobs picture, but underlying wage strength and still-strong payroll growth will likely keep the Fed in a hawkish position.
