The Active Management Channel

What is the Best Strategy for Investing in Egypt, Nigeria, and South Africa?

Recently there has been talk of the emergence of smarter ways to capture beta in African markets, the major ones in question being Egypt, Nigeria, and South Africa. Here’s our take on the three largest forces we see disrupting markets in Africa for the better over the next 3 years and how to best gain exposure to them.

Charts for the beach - 2018

Don’t leave home without your summer essentials: sunglasses, sunscreen, towel and RBA’s Charts for the beach.

S&P 500 ETFs

The S&P 500 index is arguably the most well-known worldwide. It is based on the market cap of the 500 largest companies in the U.S. The first-ever ETF, introduced in 1989, hoped to mimic the index, but was short-lived due to a lawsuit. Several S&P 500 ETFs have been brought to market since, and we show their performance, as well as the tracking error relative to the S&P 500 Total Return Index (which assumes reinvestment of dividends).

Questions I'd be Asking If I Owned Tesla Stock

If I were long in Tesla’s shares I’d be asking certain questions. After all, you’re paying $50 billion for a company that trades completely on the spoils of future dreams.

Value Still Waiting for a Catalyst

Value continues to look cheap, however predicting when it will begin to outperform is challenging. Russ suggests one potential catalyst: an unexpected acceleration in nominal economic growth.

The Long-Term Track Record for Factor Investing

A landmark study looked back at more than 100 years of data and 23 countries to determine if there are reasons to believe the cross-sectional patterns in factor returns will persist, or whether they were just anomalies that tended to disappear after publication.

If This Market is Anything, it’s Narrow

On a day like yesterday when more than half of the US tech sector was down more than 2%, we are reminded of the benefits of diversification. Yet, diversification would not have helped one participate in the market’s rise to the highest level since February.

The Surprising Traits that Inspire Trust

A new book focused on how institutional asset managers build sufficient trust to attract and maintain assets is helpful to advisors, albeit on a smaller scale. What I didn’t expect were the key traits that inspired trust.

Moving Averages: July Month-End Update

Valid until the market close on August 31, 2018.

The S&P 500 closed June with a monthly gain of 3.60% after a small gain of 0.48% in June. All three S&P 500 MAs are signaling "invested" and three of five Ivy Portfolio ETFs — Vanguard Total Stock Market ETF (VTI), Vanguard REIT Index (VNQ), and PowerShares DB Commodity Index (DBC) — are signaling "invested".

Investment Humility and Economic Recovery

We make every effort to understand the way that investors go to extremes over what we call the “well-known fact” in the stock market. A “well-known fact” is a body of economic information which is known to virtually everyone in the marketplace and has been acted on by anyone with capital.

As Qe-Era Ends, Income Trumps Total Return

Rieder and Brownback argue that as we depart the era of QE, where rising tides lifted all boats, the income component of total return becomes ever more vital to investor prospects.

World Markets Update

Four of eight indexes on our world watch list have posted gains through Friday, July 30, 2018. The top performer this year is India's BSE SENSEX with a gain of 10.89%. In second is our own S&P 500 with a gain of 4.82%. In third is France's CAC 40 with a gain of 3.44%. Coming in last is Shanghai's SSE with a loss of 13.25%.

 

Fascinating but Deadly

“Do you have the mental fortitude to accept huge gains?” is a line from The Elliott Wave Theorist’s Robert Prechter in an era gone by. But it is as true today as it was when first penned in the 1970s. And to do that, one has to ignore the ticker and hold stocks through a long market swing.

Debt Hangover Looms After US Borrowing Binge

US companies, lured by historically low interest rates, have taken on massive amounts of debt in recent years. As rates begin to rise, investors should beware of companies that might be vulnerable to increasing financing costs.

Treasury Bonds Are the Only Bonds You Need

This article compares the performance of the premier investment-grade bond index, the AGG, to the performance of its subset U.S. Treasury index. Surprisingly, the long-term performance of the Treasury index is nearly that of the AGG, and outperformed it in several crucial periods.