In this note, we'd like to share our analysis of one potential solution we've been hearing about a lot lately. It involves leveraged direct index tax-loss harvesting.
The Ivy Portfolio is based on the asset allocation strategy used by endowment funds from Harvard and Yale. It is an equally weighted portfolio constructed with 5 ETFs that feature a mix of different asset classes. By allocating across different asset classes, diversification is achieved, and risk is reduced.
The DeepSeek blip notwithstanding (our initial take on the news is here), January 2025 was a good month for financial markets. The S&P 500 was up a robust 2.7%, though Nasdaq lagged (largely due to DeepSeek, in our opinion) with “only” a 1.7% monthly return.
In this article, Russ Koesterich discusses why gold may continue to advance in 2025 despite a stronger dollar and elevated real rate environment.
The higher yields they currently offer can be a benefit for income-oriented investors, but those yields reflect the additional risks they face.
Valid until the market close on February 28, 2025.
This article provides an update on the monthly moving averages we track for the S&P 500 and the Ivy Portfolio after the close of the last business day of the month.
Equity markets are facing a variety of headwinds, but the economy remains strong, and we believe there will be ample opportunities to invest in attractively valued quality growth companies in 2025.
In this article, we will demonstrate how the use of daily options within a covered call strategy has the potential to generate substantial income while also targeting the total return of equities.
Are U.S. stocks in a massive valuation bubble? We don’t think so. Will U.S. stocks outperform their European and Asian counterparts over the next 10 years? Maybe.
A seemingly unstoppable flood of money has Vanguard Group Inc. on the brink of claiming a crown that State Street Corp. has held for decades.
For stocks, Christmas came with a 'Santa Clause' rally soon after the election. Since then, there's been a correction in US markets.
We explore how advancements in indexing solutions have allowed investors to tailor their portfolios according to their specific objectives or risk profiles.
There are a few things it makes sense to get a start on when a new year begins. One is tax-loss harvesting.
While stocks can move higher, the bond market will continue to matter. Higher rates suggest that equity leadership may continue to reside in companies that are relatively rate insensitive.
For this edition of Bull vs. Bear, the VettaFi writers debate the case for using sector ETFs to make bets on the new market regime.
Friday’s rip-roaring jobs report has pushed the betting markets to price in a single rate cut for the entire year of 2025.
Ten years ago, Research Affiliates launched the Asset Allocation Interactive online tool, making our CMEs freely available to the public. With one full cycle complete, we can see what has worked well and where we can improve.
Every new year brings with it a new opportunity to stop for a moment, revisit resolutions, and refresh outlooks.
While the market has largely moved past that year’s recession debate, it’s worth noting that the traditional definition that persisted for all our careers—two consecutive quarters of negative GDP growth—did occur in the first half of 2022.
In our year ahead outlook, we unveil 5 key factors we believe offer rare certainty in these uncertain times. Discover how we’re navigating this landscape and positioning portfolios to seize opportunities and mitigate risks in the year ahead.
For 2025 and beyond, a few particular global and industry trends can offer attractive long-term returns for advisors and investors alike.
Three interconnected lessons from 2024 help shape our 2025 outlook.
After a strong November 2024, markets were generally down in December. The S&P 500 index was down 2.3%, while energy, small caps, value stocks, and REITs performed considerably worse.
Fixed income is top of mind as investors look to a new interest rate regime. Sylvia Yeh dives into the outlook for 2025.
CAPE, or the cyclically adjusted price-to-earnings ratio, introduced in 1988 by economists John Campbell and Robert Shiller, is arguably the best-known indicator of broad market valuation. And CAPE is now at an almost (though not quite) all-time high level, according to data from Robert Shiller's website.
In an actively managed portfolio, there’s no way to escape capital gains taxes altogether. But understanding the importance of tax efficiency is crucial to long-term success for investors and advisors.
Why cyclical leadership in equities could continue into 2025.
At the time of year where everyone is reflecting on the things that matter most to them in their personal lives, it is important to also consider what matters when it comes to investing. In this investment commentary, Johnson Financial Group shares what really matters as you put your money to work.
A conversation with our stock selection team, part two.
Newly released research from State Street Global Advisors breaks down why financial advisors are embracing model portfolios more this year.
The transition from bank-dominated lending to a diversified financing ecosystem offers unprecedented opportunities for private credit investors.
An enduring image from 2024 will be the capture of the SpaceX booster rocket by the Mechazilla robot arms on its return to Earth. This achievement served as a powerful metaphor for the year: the improbable not only became possible but redefined expectations.
US Treasuries gained and traders boosted their bets on a Federal Reserve interest-rate reduction next week after a report showed consumer prices last month accelerated in line with expectations.
BlackRock’s Rachel Aguirre highlights several of the year’s biggest ETF trends and explains how the firm has positioned itself around them. VettaFi’s Cinthia Murphy discusses the recently launched FIRE ETFs and LifeX ETFs.
CEO Ali Dibadj highlights the three macro drivers that investors must navigate in 2025 and beyond, as well as the importance of actively positioning for a brighter investment future.
Hedge fund executive Cliff Asness says artificial intelligence is becoming “annoyingly better” at doing parts of his job.
Historical trends are being permanently broken in real time as mega forces, like the rise of artificial intelligence (AI), transform economies.
Over the past few years, I’ve written numerous articles and given numerous presentations on Direct Indexing.
Will the Fed make one more rate cut to end 2024? One more cut would top off what has been a very positive fall for rate cut hopefuls considering how long the Fed waited.
We launched QuantStreet a little over three years ago, and our first accounts went live as of December 2021.
We compare investor risk-taking behaviors at the start of the bull market with those nearly 16 years later. We also analyze key market areas that can offer essential diversification to help manage overall portfolio risk.
When it comes to personalized investment strategies, multiple perspectives come into play: the client, the provider and the advisor.
To truly benefit from stock investing, it’s necessary to embrace both the emotions and the rewards that come with positive skew. This means learning to live with tail events. It may be uncomfortable when they occur, but they are an integral part of long-term success in the stock market.
Policy changes could reshape return potential for companies across the US market. Here’s how investors can start thinking about the challenges ahead.
As students across the country start to prepare for year-end exams, there are valuable lessons we can take from the classroom.
Merrie Zhang shares how direct indexing works, the potential benefits of it, and best practices on selecting a provider.
Generosity knows no season. But as the year-end holidays approach, many of your clients may be thinking about making a charitable donation or increasing their charitable giving.
Rick Raczkowski, PM, Relative Return Team, Loomis, Sayles & Company, discussed how the team views fixed income investing looking ahead.
Sirion Skulpone of Goldman Sachs Asset Management talks through the risks of being concentrated in individual stocks.
Why the equity market rally following the U.S. presidential election could continue into year-end.
The inverse correlation between bonds and stocks has returned, broadening potential for risk-adjusted returns in multi-asset portfolios.
The 2024 Global Survey of Financial Advisors from Natixis revealed the ongoing hesitance of investors to move out of cash and into bonds.
From stock picking to benchmark selection, the construction of an active thematic equity portfolio will play a crucial role in its ability to deliver on a theme’s return potential.
The S&P 500 index has had a spectacular run from its October 2022 trough to its present all-time peak, which has some (me included) wondering when the bull market will end. I approach this question in three steps.
A year-round focus on taxes can unlock value for investors in higher brackets—and it can help advisors prove their own value.
Recent insights from Natixis Investment Managers breaks down a few fixed income risks that investors may not be aware of.
Things are looking up for bonds - learn what makes them a great addition to your portfolio right now.
In this article, we’ll remind you what listed real assets are, explain how they fit into an asset allocation, and help you understand why we believe now is an attractive time to invest in the asset class.
With Direct Indexing, you can help your clients prepare for life-changing transactions and minimize capital gains taxes by selectively harvesting losses to offset those gains, and implementing tax-efficient trading strategies.
In this article, Russ Koesterich discusses why he believes U.S. exceptionalism is a trend that is likely to continue.
The most common questions we’ve been asked as the election approaches are generally about the Federal debt and deficits. Many investors worry about a looming “day of reckoning” for US debt. They fear the US’s fiscal imprudence will eventually force a sudden and dramatic repricing of US debt. In this insight, we explore the modern history of US debt to GDP across several Presidential administrations and outline why investors should not be worried about a financial apocalyptic abyss.
When done effectively, your outsourced team of professionals can help improve efficiencies, increase productivity, and scale profitably – all while giving you the freedom to focus on what you’re most passionate about.
Many investors today use EM debt for the wrong reasons, manage it imprudently, or overlook the best parts.
Volatility creates a number of challenges for advisors and investors, but also opportunities for those who know where to look.
Fixed income experts at Natixis Investment Managers recently weighed in with outlooks on rate cuts and how to approach bonds.
The tendency to blindly follow these rules has led investors towards prematurely de-risking and over-estimating the likelihood of recession.
Markets changed character to broad-based optimism relating to the economy. The economic picture began to come into focus with inflation continuing to moderate as the economy maintains steady growth and employment. The result was a stark turnaround for economically integrated or interest rate sensitive assets, which resulted in a great quarter for diversified multi-asset portfolios. New Frontier sets a major milestone in Q4, marking 20 years of investing at the end of October.
The cost of higher education has skyrocketed over the last few decades, and shows no signs of slowing. That’s why it’s more important than ever that parents start saving as early as possible for their children’s future.
Opening a 529 college savings account can be a smart move if you’d like to save for college on a tax-advantaged basis. One thing to consider when opening a 529 plan is whether it should be a custodial or individual account. While both allow you to save for college costs and enjoy some tax breaks, they differ in terms of who has control of the account and the assets in it.
A 529 college savings plan, also known as a qualified tuition plan (QTP), is a popular choice among parents and families looking to meet their children’s future educational expenses. Two of the 529 plan’s helpful features are tax-deferred growth of your contributions and later, tax-free withdrawals for eligible expenses.
529 plans are one of the most popular ways Americans save for the college expenses of their children. As of June 2024, there were 16.8 million 529 savings accounts holding $508 billion, according to the College Savings Plan Network.
In this article, Russ Koesterich discusses gold may continue to serve as a store of value in the current environment.
Cash strategies may seem safe, but inflation can bite into returns. Instead, investors can try to outperform inflation with equities.
Commodity returns are hard to predict, yet all commodities have something in common—prices that tend to return to their long-run average, a characteristic described as mean reversion. For investors, this behavior could offer an exciting opportunity to improve long-term performance potential.
For decades, a key component of many investors’ portfolios was a fixed income ladder. It was intended to provide ballast to the more volatile equity allocation and help reduce interest-rate risk.
The 2022 broad market downturn across major asset classes came as a nasty surprise to investors. Historically, such an event is very rare, and no one was expecting to see almost all asset classes down for the year. Yet, even though it might seem as if diversification was of no help in 2022, the story changes if we look beyond the major headline asset classes.
The puck has certainly moved since our last market commentary. This month, we argue that the needle on portfolio construction should move with it. Equities have been the driver of returns for much of the last few years.
Alpha (α) is a fundamental yet poorly understood concept in finance. Simply put, it is the difference between the return of an investment and that of a risk-adjusted benchmark. In a more advanced definition, alpha is the residual in an asset pricing equation (see Appendix A). Alpha is what active managers strive to achieve and passive managers do not pursue.
Unbundling services and offering them à la carte could appeal to clients who want more control over their financial management. This approach allows clients to tailor the services they receive to their unique needs and preferences.
Discussion about more political oversight or political control of the U.S. Federal Reserve (Fed) occasionally heats up. We are seeing more of this type of discourse today as the election approaches. In our view, limited Fed independence could prove disastrous.
If climate portfolios are positioned in the same giant US stocks held in broad equity allocations, investors may unwittingly double down on risk.
Investors can use this Natixis ETF to lock in robust income and capital appreciation, while generating security against equity volatility.
The major market event in September was the Fed's 50 basis point rate cut following the September 18th Federal Open Market Committee meeting. There was broad consensus the Fed would cut rates, though the 50 basis points (as opposed to 25) and perhaps the tone of Jay Powell's press conference surprised to the upside...
About eight in 10 investors (81%) believe they must fund their own retirement as opposed to relying on private and public pensions.
When building a portfolio, advisors need to optimize asset allocations and manage risk. But they also need to understand the trends happening in the market and the tools that can be leveraged to meet the moment.
While agency mortgage-backed securities offer compelling valuations, not every mortgage is created equally.
The last two years brought challenges for investors across all walks of life, but particularly for retirees.
Just as the industrial revolution changed the way goods are manufactured and consumed, so the technological revolution will do for services. Once something can be made at scale, the market for it can expand and be segmented. The same goes for financial planning.
Strategies and best practices for equity portfolios.
A new wave of opportunity seems set to flow into private credit markets, which could enhance risk-adjusted returns and diversify portfolios. What's driving this potential?
Separately Managed Accounts
Out of the Frying Pan and Into the Fire: Selling a Highly Appreciated Stock Without Paying Taxes?
In this note, we'd like to share our analysis of one potential solution we've been hearing about a lot lately. It involves leveraged direct index tax-loss harvesting.
Moving Averages of the Ivy Portfolio and S&P 500: January 2025
The Ivy Portfolio is based on the asset allocation strategy used by endowment funds from Harvard and Yale. It is an equally weighted portfolio constructed with 5 ETFs that feature a mix of different asset classes. By allocating across different asset classes, diversification is achieved, and risk is reduced.
QuantStreet February 2025 Letter: More of the Same
The DeepSeek blip notwithstanding (our initial take on the news is here), January 2025 was a good month for financial markets. The S&P 500 was up a robust 2.7%, though Nasdaq lagged (largely due to DeepSeek, in our opinion) with “only” a 1.7% monthly return.
Stay Long Gold, Just Not as a Hedge
In this article, Russ Koesterich discusses why gold may continue to advance in 2025 despite a stronger dollar and elevated real rate environment.
Are Preferred Securities Still Attractive?
The higher yields they currently offer can be a benefit for income-oriented investors, but those yields reflect the additional risks they face.
Moving Averages: S&P Finishes January 2025 Up 2.70%
Valid until the market close on February 28, 2025.
This article provides an update on the monthly moving averages we track for the S&P 500 and the Ivy Portfolio after the close of the last business day of the month.
Equity Outlook: Climbing the Wall of Worry
Equity markets are facing a variety of headwinds, but the economy remains strong, and we believe there will be ample opportunities to invest in attractively valued quality growth companies in 2025.
Balancing Yield & Total Return
In this article, we will demonstrate how the use of daily options within a covered call strategy has the potential to generate substantial income while also targeting the total return of equities.
The Mother of All Bubbles?
Are U.S. stocks in a massive valuation bubble? We don’t think so. Will U.S. stocks outperform their European and Asian counterparts over the next 10 years? Maybe.
Vanguard’s S&P 500 Fund Is About to Become World’s Largest ETF
A seemingly unstoppable flood of money has Vanguard Group Inc. on the brink of claiming a crown that State Street Corp. has held for decades.
Not Time Yet for Stocks to Worry About Rising Rates
For stocks, Christmas came with a 'Santa Clause' rally soon after the election. Since then, there's been a correction in US markets.
Index Investing as an Active Decision: An Exploration of Evolution and Customization
We explore how advancements in indexing solutions have allowed investors to tailor their portfolios according to their specific objectives or risk profiles.
Direct Indexing: An Easy Way to Tax-Loss Harvest All Year Round
There are a few things it makes sense to get a start on when a new year begins. One is tax-loss harvesting.
Will Higher Rates Doom Stocks? Not Necessarily
While stocks can move higher, the bond market will continue to matter. Higher rates suggest that equity leadership may continue to reside in companies that are relatively rate insensitive.
Bull vs. Bear: Using Sector ETFs to Make Bets on the New Regime
For this edition of Bull vs. Bear, the VettaFi writers debate the case for using sector ETFs to make bets on the new market regime.
Active Fixed Income in 2025: Another Golden Year Ahead
Friday’s rip-roaring jobs report has pushed the betting markets to price in a single rate cut for the entire year of 2025.
Asset Allocation Interactive at 10 Years: The Good, the Not Too Bad, and the Ugly
Ten years ago, Research Affiliates launched the Asset Allocation Interactive online tool, making our CMEs freely available to the public. With one full cycle complete, we can see what has worked well and where we can improve.
Market Predictions & ETF Ideas for a New Year
Every new year brings with it a new opportunity to stop for a moment, revisit resolutions, and refresh outlooks.
High Hopes or Hollow Hype? A 2025 Reality Check
While the market has largely moved past that year’s recession debate, it’s worth noting that the traditional definition that persisted for all our careers—two consecutive quarters of negative GDP growth—did occur in the first half of 2022.
2025 Year Ahead: Certainties for an Uncertain World
In our year ahead outlook, we unveil 5 key factors we believe offer rare certainty in these uncertain times. Discover how we’re navigating this landscape and positioning portfolios to seize opportunities and mitigate risks in the year ahead.
Keep These Investment Themes In Mind For 2025
For 2025 and beyond, a few particular global and industry trends can offer attractive long-term returns for advisors and investors alike.
Three Investment Lessons From 2024
Three interconnected lessons from 2024 help shape our 2025 outlook.
QuantStreet January 2025 Letter: Trump-Trade Reversal
After a strong November 2024, markets were generally down in December. The S&P 500 index was down 2.3%, while energy, small caps, value stocks, and REITs performed considerably worse.
Muni Bonds in a New Interest Rate Regime
Fixed income is top of mind as investors look to a new interest rate regime. Sylvia Yeh dives into the outlook for 2025.
Does High CAPE Predict Low Market Returns?
CAPE, or the cyclically adjusted price-to-earnings ratio, introduced in 1988 by economists John Campbell and Robert Shiller, is arguably the best-known indicator of broad market valuation. And CAPE is now at an almost (though not quite) all-time high level, according to data from Robert Shiller's website.
How to Manage Taxes in Direct Indexing Portfolios
In an actively managed portfolio, there’s no way to escape capital gains taxes altogether. But understanding the importance of tax efficiency is crucial to long-term success for investors and advisors.
Economic Resilience Supports Cyclical Rally
Why cyclical leadership in equities could continue into 2025.
What Really Matters – In Investing
At the time of year where everyone is reflecting on the things that matter most to them in their personal lives, it is important to also consider what matters when it comes to investing. In this investment commentary, Johnson Financial Group shares what really matters as you put your money to work.
Don’t Forget About Growth!
A conversation with our stock selection team, part two.
State Street Reports Advisors Driving More Assets to Model Portfolios
Newly released research from State Street Global Advisors breaks down why financial advisors are embracing model portfolios more this year.
Private Credit: Asset-Based Finance Shines as Lending Landscape Evolves
The transition from bank-dominated lending to a diversified financing ecosystem offers unprecedented opportunities for private credit investors.
2025 Annual Global Market Outlook: The Mechazilla Moment
An enduring image from 2024 will be the capture of the SpaceX booster rocket by the Mechazilla robot arms on its return to Earth. This achievement served as a powerful metaphor for the year: the improbable not only became possible but redefined expectations.
Treasuries Rise as Inflation Data Fuels Wagers on a Fed Rate Cut
US Treasuries gained and traders boosted their bets on a Federal Reserve interest-rate reduction next week after a report showed consumer prices last month accelerated in line with expectations.
BlackRock’s Rachel Aguirre on Mega Caps, Buffers, Bitcoin, & More
BlackRock’s Rachel Aguirre highlights several of the year’s biggest ETF trends and explains how the firm has positioned itself around them. VettaFi’s Cinthia Murphy discusses the recently launched FIRE ETFs and LifeX ETFs.
Macro Drivers: Actively Navigating Change and Complexity in 2025
CEO Ali Dibadj highlights the three macro drivers that investors must navigate in 2025 and beyond, as well as the importance of actively positioning for a brighter investment future.
Asness’ AI Twin Heralds End of Human Fund Managers
Hedge fund executive Cliff Asness says artificial intelligence is becoming “annoyingly better” at doing parts of his job.
2025 Investment Outlook: Building the Transformation
Historical trends are being permanently broken in real time as mega forces, like the rise of artificial intelligence (AI), transform economies.
Direct Indexing: The Smart Strategy Advisors Can’t Afford to Ignore in 2025
Over the past few years, I’ve written numerous articles and given numerous presentations on Direct Indexing.
Potential December Rate Cut to Kick-Start Active Investing Into 2025
Will the Fed make one more rate cut to end 2024? One more cut would top off what has been a very positive fall for rate cut hopefuls considering how long the Fed waited.
QuantStreet December 2024 Letter: Our Three-Year Anniversary
We launched QuantStreet a little over three years ago, and our first accounts went live as of December 2021.
Emphasize Value as Investors Increasingly Throw Caution to the Wind
We compare investor risk-taking behaviors at the start of the bull market with those nearly 16 years later. We also analyze key market areas that can offer essential diversification to help manage overall portfolio risk.
How to Create a Personalized Portfolio with Direct Indexing
When it comes to personalized investment strategies, multiple perspectives come into play: the client, the provider and the advisor.
Unlocking Stock Market Success: Why You Should Embrace the Skew
To truly benefit from stock investing, it’s necessary to embrace both the emotions and the rewards that come with positive skew. This means learning to live with tail events. It may be uncomfortable when they occur, but they are an integral part of long-term success in the stock market.
Beyond the Trump Trade: US Equity Investing in a New Policy Era
Policy changes could reshape return potential for companies across the US market. Here’s how investors can start thinking about the challenges ahead.
Ideas for the “Bookends” of Your Advisory Business
As students across the country start to prepare for year-end exams, there are valuable lessons we can take from the classroom.
Keep More of What You Earn With Direct Indexing
Merrie Zhang shares how direct indexing works, the potential benefits of it, and best practices on selecting a provider.
Strategic Giving: How Direct Indexing Could Enhance Charitable Contributions
Generosity knows no season. But as the year-end holidays approach, many of your clients may be thinking about making a charitable donation or increasing their charitable giving.
2025 Fixed Income Investing: The Credit Cycle & Duration
Rick Raczkowski, PM, Relative Return Team, Loomis, Sayles & Company, discussed how the team views fixed income investing looking ahead.
Tackling Concentrated Stock Risk
Sirion Skulpone of Goldman Sachs Asset Management talks through the risks of being concentrated in individual stocks.
Why the Election Rally Could Continue
Why the equity market rally following the U.S. presidential election could continue into year-end.
Negative Correlations, Positive Allocations
The inverse correlation between bonds and stocks has returned, broadening potential for risk-adjusted returns in multi-asset portfolios.
Investors Still Reluctant to Move From Cash to Bonds
The 2024 Global Survey of Financial Advisors from Natixis revealed the ongoing hesitance of investors to move out of cash and into bonds.
How to Build a Thematic Equity Portfolio
From stock picking to benchmark selection, the construction of an active thematic equity portfolio will play a crucial role in its ability to deliver on a theme’s return potential.
Is It Possible to Forecast Large Market Selloffs?
The S&P 500 index has had a spectacular run from its October 2022 trough to its present all-time peak, which has some (me included) wondering when the bull market will end. I approach this question in three steps.
How Direct Indexing Can Make the Difference for Taxable Investors
A year-round focus on taxes can unlock value for investors in higher brackets—and it can help advisors prove their own value.
Avoid These 2 Pitfalls In Fixed Income Investing
Recent insights from Natixis Investment Managers breaks down a few fixed income risks that investors may not be aware of.
The Bond Market Update: What You Need to Know
Things are looking up for bonds - learn what makes them a great addition to your portfolio right now.
Real Assets: Today’s Mag 7 Diversifiers?
In this article, we’ll remind you what listed real assets are, explain how they fit into an asset allocation, and help you understand why we believe now is an attractive time to invest in the asset class.
How Direct Indexing Can Help Offset Taxes on a Future Financial Windfall
With Direct Indexing, you can help your clients prepare for life-changing transactions and minimize capital gains taxes by selectively harvesting losses to offset those gains, and implementing tax-efficient trading strategies.
Reasons to Remain Overweight U.S. Stocks
In this article, Russ Koesterich discusses why he believes U.S. exceptionalism is a trend that is likely to continue.
Fade the Election – Part 2: Debt & Deficits
The most common questions we’ve been asked as the election approaches are generally about the Federal debt and deficits. Many investors worry about a looming “day of reckoning” for US debt. They fear the US’s fiscal imprudence will eventually force a sudden and dramatic repricing of US debt. In this insight, we explore the modern history of US debt to GDP across several Presidential administrations and outline why investors should not be worried about a financial apocalyptic abyss.
Who Belongs on Your Advisory Firm’s Dream Team?
When done effectively, your outsourced team of professionals can help improve efficiencies, increase productivity, and scale profitably – all while giving you the freedom to focus on what you’re most passionate about.
Emerging Markets: The Biggest, Fastest Growing, and Arguably Least Understood Pool of Credit in the World
Many investors today use EM debt for the wrong reasons, manage it imprudently, or overlook the best parts.
An Advisor’s Guide to Harnessing Volatility
Volatility creates a number of challenges for advisors and investors, but also opportunities for those who know where to look.
Natixis Weighs In: Rate Cuts and Bonds
Fixed income experts at Natixis Investment Managers recently weighed in with outlooks on rate cuts and how to approach bonds.
Investing in an Era of Flouted Rules
The tendency to blindly follow these rules has led investors towards prematurely de-risking and over-estimating the likelihood of recession.
Q3 2024: Shifting Tides: Broad-Based Optimism Fuels Market Momentum
Markets changed character to broad-based optimism relating to the economy. The economic picture began to come into focus with inflation continuing to moderate as the economy maintains steady growth and employment. The result was a stark turnaround for economically integrated or interest rate sensitive assets, which resulted in a great quarter for diversified multi-asset portfolios. New Frontier sets a major milestone in Q4, marking 20 years of investing at the end of October.
How an UTMA Compares to a 529 Plan
The cost of higher education has skyrocketed over the last few decades, and shows no signs of slowing. That’s why it’s more important than ever that parents start saving as early as possible for their children’s future.
529 Plans: Custodial Versus Individual Accounts
Opening a 529 college savings account can be a smart move if you’d like to save for college on a tax-advantaged basis. One thing to consider when opening a 529 plan is whether it should be a custodial or individual account. While both allow you to save for college costs and enjoy some tax breaks, they differ in terms of who has control of the account and the assets in it.
529 Plan Withdrawal Rules
A 529 college savings plan, also known as a qualified tuition plan (QTP), is a popular choice among parents and families looking to meet their children’s future educational expenses. Two of the 529 plan’s helpful features are tax-deferred growth of your contributions and later, tax-free withdrawals for eligible expenses.
This 529 Plan Mistake Could Cost You Big at Tax Time
529 plans are one of the most popular ways Americans save for the college expenses of their children. As of June 2024, there were 16.8 million 529 savings accounts holding $508 billion, according to the College Savings Plan Network.
Gold’s Stars Continue to Align
In this article, Russ Koesterich discusses gold may continue to serve as a store of value in the current environment.
Inflation Bites Into Cash Investments. Instead, Opt for Equities
Cash strategies may seem safe, but inflation can bite into returns. Instead, investors can try to outperform inflation with equities.
What Goes Up, Must Come Down: Mean Reversion in Commodities
Commodity returns are hard to predict, yet all commodities have something in common—prices that tend to return to their long-run average, a characteristic described as mean reversion. For investors, this behavior could offer an exciting opportunity to improve long-term performance potential.
Back in Fashion: Bond ladders
For decades, a key component of many investors’ portfolios was a fixed income ladder. It was intended to provide ballast to the more volatile equity allocation and help reduce interest-rate risk.
The Shifting Sands of Alternative Risk Premia Strategies
The 2022 broad market downturn across major asset classes came as a nasty surprise to investors. Historically, such an event is very rare, and no one was expecting to see almost all asset classes down for the year. Yet, even though it might seem as if diversification was of no help in 2022, the story changes if we look beyond the major headline asset classes.
Moving the Needle
The puck has certainly moved since our last market commentary. This month, we argue that the needle on portfolio construction should move with it. Equities have been the driver of returns for much of the last few years.
The Alpha Equation: Myths and Realities
Alpha (α) is a fundamental yet poorly understood concept in finance. Simply put, it is the difference between the return of an investment and that of a risk-adjusted benchmark. In a more advanced definition, alpha is the residual in an asset pricing equation (see Appendix A). Alpha is what active managers strive to achieve and passive managers do not pursue.
What If Your Prospect Doesn’t Want Comprehensive Wealth Management?
Unbundling services and offering them à la carte could appeal to clients who want more control over their financial management. This approach allows clients to tailor the services they receive to their unique needs and preferences.
Hands Off the Fed
Discussion about more political oversight or political control of the U.S. Federal Reserve (Fed) occasionally heats up. We are seeing more of this type of discourse today as the election approaches. In our view, limited Fed independence could prove disastrous.
The Hidden Hazard in Climate Portfolios: Equity Concentration Risk
If climate portfolios are positioned in the same giant US stocks held in broad equity allocations, investors may unwittingly double down on risk.
Worried About Market Volatility? Try This Equity ETF
Investors can use this Natixis ETF to lock in robust income and capital appreciation, while generating security against equity volatility.
QuantStreet October 2024 Investor Letter: The Fed Finally Starts Easing
The major market event in September was the Fed's 50 basis point rate cut following the September 18th Federal Open Market Committee meeting. There was broad consensus the Fed would cut rates, though the 50 basis points (as opposed to 25) and perhaps the tone of Jay Powell's press conference surprised to the upside...
The Reality of Diminishing Retirement Security
About eight in 10 investors (81%) believe they must fund their own retirement as opposed to relying on private and public pensions.
ETFs and Portfolio Construction: trends, managing risk and optimizing asset allocation
When building a portfolio, advisors need to optimize asset allocations and manage risk. But they also need to understand the trends happening in the market and the tools that can be leveraged to meet the moment.
The Appeal of Agency Mortgage-Backed Securities in a Shifting Economic Landscape
While agency mortgage-backed securities offer compelling valuations, not every mortgage is created equally.
For Retirees, Interest Rates & Inflation Remain Risks
The last two years brought challenges for investors across all walks of life, but particularly for retirees.
Your Next Financial Adviser Will Be on an App
Just as the industrial revolution changed the way goods are manufactured and consumed, so the technological revolution will do for services. Once something can be made at scale, the market for it can expand and be segmented. The same goes for financial planning.
Thematic Investing: More Than Just a Good Story
Strategies and best practices for equity portfolios.
Demystifying Private Credit
A new wave of opportunity seems set to flow into private credit markets, which could enhance risk-adjusted returns and diversify portfolios. What's driving this potential?