Equity market volatility has been notably subdued -- but how long can that continue, given the risks lurking below the surface? QS Investors' James Norman on why it's important to stay ready with an allocation to low-volatility stocks.
Small cap stocks have far less sensitivity to interest rate moves than their large-cap cousins -- a quality worth considering given the Fed's plans to normalize rates further this year.
While speculation about political risks is intriguing, it's the cold, hard facts about Europe's economy that should ultimately be the focus for investors.
Central Bank Watch
The US Federal Reserve (Fed) lifted interest rates, as expected, and committed to 2 more hikes later this year. The move signals the central bank's resolve to...
European Elections 2017
When French far-right and anti-euro candidate Marine Le Pen drives more news stories than US and European central bank governors Janet Yellen and Mario Draghi, one can only conclude that political uncertainty is on the up. It has indeed become one of investors’ main concerns, especially ahead of this year’s three national elections in core European countries: the Netherlands, France and Germany.
Chart of the Week
Source: Bloomberg, as of 2/28/17. Past performance is no guarantee of future results. Please note that an investor cannot invest directly in an index. Unmanaged index returns do not reflect any fees, expenses or sales charges. This information is provided for illustrative purposes only and does not reflect the performance of an actual investment.
Chart of the Week
Mid-Week Bond Update
US president Trump’s failure to pass through Congress his planned Healthcare bill increased skepticism over his ability to implement other reforms – and the sustainability of the so-called reflationary “Trump trade.” The reality check lifted US Treasuries, especially those with longer maturities, which had been particularly hit...
Brexit and Article 50
The triggering by the UK of the European Union's Article 50 today formally signals the UK’s intention to seek a divorce and allows exit negotiations to begin in earnest. What does this means for British companies and the risks and opportunities that may arise from ‘Brexit’?
Around the curve
The European election season is upon us. The Dutch elections are now history, and the worst outcome didn’t occur. The French election is on tap and has elicited greater concerns. A populist could be elected...
Just before the financial crisis, investing in US mortgage-backed securities (MBS) was like rolling a dice over a green games table: the outcome could have been random as the assets’ publicised characteristics sometimes barely resembled their true fundamentals. Ten years, a major financial crisis and thousands of pages of new regulation later, investing in MBS has radically changed.
A top national priority
With bipartisan support at every level of government, investors are likely to see more infrastructure investment opportunities surface faster.
EMs win post-Fed rally; dollar loses
Emerging Markets rallied following last week’s dovish US Federal Reserve (Fed) rate hike, and the central bank’s reassurance that its continuously loose monetary policy will prevail, at least for now. The absence of changes in the Fed’s projections, towards more optimistic ones, led to a US dollar sell-off, wiping...
Western Asset examines recent trends in the muni bond market and provides its outlook about conditions ahead.
Yellen's FOMC delivers the goods; global oil proves difficult to tame; close call in the Netherlands
Mid-Week Bond Update
A widely-anticipated US Federal Reserve (Fed) rate hike accompanied by central bank reassurance about the present accommodative stance reversed a negative streak for...
What do rising rates have to do with stocks? One past example: the small-cap equity markets' response to a rising-rate environment, which has helped power the shift in favor of "value" – as a proxy for stocks of quality companies – over the past two years.
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