News > Wealth Management

International Equities and the U.S. Dollar: Is It Time to Hedge?
In a reversal from last year, the U.S. dollar has strengthened against other major currencies in 2018, reflecting rising U.S. rates, expectations of more Federal Reserve rate hikes and recent sluggish economic data outside the U.S. While U.S. dollar strength has broad implications for earnings and markets, it also has a direct impact on the performance of international equity allocations
Why It’s a Mistake to Cash Out of Bonds When Rates Rise
Bond investors are clearly worried about rising rates in today’s environment. Many are protecting themselves by moving to very short-term investments, or even cash. But is their “safe” choice putting them at risk? The View Gets Better Up High We get it. It seems intuitive that if interest rates are rising, bond prices will fall, so you should put your
Portfolio Allocation When Safe Havens Get Stormy
High-quality bonds and defensive stocks are on the ropes. And U.S. blue-chips look poised to roll over, if history is any guide. But what if it isn’t? What should investors do when textbook solutions aren’t working? The traditional 60/40 equity-to-fixed income portfolio allocation isn’t holding up so well amid this year’s market volatility. Of course, five months give or take
The Holy Grail Investment Formula: Better Returns With Less Risk
What would you do if I handed you a map to the Holy Grail of investing? Would you toss it in the trash because Nobel Laureate economists say it’s impossible to beat the market with less risk? Or would you give it a thorough read to see if there is any validity? Let’s find out. So, how exactly can you
The Bottom-Up Search for Value and Income
During the first quarter of 2018 the MSCI World Index, the Bloomberg Barclays US Agg Total Return Index and the ICE BofAML BB-B Global High Yield Constrained Index all declined, returning -1.2%, -1.5%, and -0.3%, respectively. The US dollar was weak with the euro, the yen and gold price appreciating 2.5%, 5.9% and 1.7%, in turn, while the price of
Energy Stocks: A Surprising Defensive Play?
With volatility rising, many equity investors are thinking proactively about downside protection. But traditional safe havens may not do the job. Defensive equity positions can be found today in surprising places—like the energy sector. After nine years of S&P 500 Index gains, investors are becoming increasingly nervous about the bull market’s durability. Rising interest rates, a return of inflation and
Ten Investor Takeaways From the IMF/World Bank Spring Meetings
Global central bankers, finance ministers and representatives from the private sector and civic groups gathered in Washington recently for the spring meetings of the IMF (International Monetary Fund)/World Bank Group. With trade policy, geopolitics and emerging markets currently top-of-mind for many investors, the meetings were especially relevant this year. Below are our 10 key takeaways from the discussions. Politics trumps
Three Strategies to Prepare for Rising Volatility
We all knew volatility couldn’t stay low forever, even with solid global growth and low inflation. Rising volatility is common in the late stage of the economic cycle, and negative headlines have been dominating market sentiment. Given recent concerns about higher-than-expected inflation, more aggressive central bank action, rising US deficits and a “tariff tantrum,” the case for market uncertainty continues.
Seth Klarman: Mainstream Investing Has It Backwards
Some years ago Seth Klarman gave a fantastic speech at the MIT Sloan Investment Management Club. During his speech Klarman suggested that the mainstream approach to investing has is backwards saying: See 2017 Hedge Fund Letters. “Right at the core, the mainstream has it backwards. Warren Buffett often quips that the first rule of investing is to not lose money, and
Howard Marks: 'Extreme Predictions Are Rarely Right, but They’re the Ones That Make You Big Money'
One of the best resources for investors are Howard Marks’ annual memos. They provide a number of valuable investing insights for investors. One such example can be found in the 1993 missive titled – The Value of Predictions, or Where’d All This Rain Come From?. In this memo Marks discusses a number of aspects of market forecasting. With particular emphasis on