1. In yesterday's Congressional testimony, new Fed chairman Jerome Powell spoke positively on growth, saying that “some of the headwinds the US economy faced in previous years have turned into tailwinds.” He also addressed concerns about negative spillover effects to the economy from the recent spike in market volatility. Despite continued assurance of a “gradual increase” in policy interest rates, bond and stock prices were sharply lower ...
Few investment products currently garner more attention than target date funds. Launched 30 years ago, TDFs are the most common qualified default investment alternative used in 401(k)s today, and they claim a sizable portion of the average investor's retirement portfolio.
A Quick History Lesson
In the past, the Consumer Staples sector has had a reputation for providing investors with the best of both worlds: market-like returns and defensive characteristics. This reputation is well deserved—during the 10 years starting 12/31/2007 and ending 12/31/2017 the Consumer Staples sector outperformed the S&P 500® Index by roughly 1.5% annualized with a maximum drawdown of 27.4%, ...
Every investment advisor has to make a choice when running a financial advisory practice: Do I manage my client’s investment portfolios myself or do I hire someone to do it for me? Almost every broker-dealer we work with has asked us to address this topic due to rising compliance concerns, but I’ve chosen to do it for a different reason: you the advisor.
Do you own or use mutual funds, passive ETFs or strategic SMA managers?
As target date funds continue to expand in usage and popularity, we wanted to point out four things you might have missed in the 2013 Target Date Retirement Funds DOL memo, which also address what exactly the DOL wants out of a QDIA.
1. What (finally) spooked the markets? After years of benign wage growth, a solid up-trend has emerged. With all the QE and monetary stimulus still in the system, suddenly the Fed has to deal with the threat of inflation from wage growth.
In our last post for the 2018: The State of the Bond Markets Part 2 report, we reviewed where the U.S. economy stands as well as quantifying the government's total debt outstanding. The monetary stimulus that has been injected into our economy is larger than anything tried before, and we expressed our concerned that any hint of inflation may cause interest rates to rise rapidly due to this monetary stimulus leftover in the system.