The Asset Allocation Channel

Rebalance or Rush Hour?

Embracing a disciplined approach to rebalancing can lead to better long-term investment outcomes. Overcoming the natural tendency to wait-and-see before repositioning our portfolios can be a difficult, but worthy, goal for investors to pursue. Advisors can help investors surmount this and other behavioral hurdles by adopting a systematic rebalancing approach that effectively institutionalizes contrarian investment behavior.

The Latest Look at the Total Return Roller Coaster

Here's an interesting set of charts that will especially resonate with those of us who follow economic and market cycles. Imagine that five years ago you invested $10,000 in the S&P 500. How much would it be worth today, with dividends reinvested but adjusted for inflation? The purchasing power of your investment has increased to $19,357 for an annualized real return of 13.28%.

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.

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".

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.

The Long Runway for Infrastructure Spending

Infrastructure is not a glamorous topic — it isn’t satirized on late-night TV, nor is it trending on social media. But the need for increased infrastructure investment is real across the globe. Given expected demographic trends, disruption by new technology and insufficient spending in the past, we at Invesco Real Estate believe infrastructure-related companies could be poised for decades of growth.

The Unique Retirement Issues Facing Women

Women face at least 12 unique financial and life challenges related to long-term retirement planning. Addressing them can be overwhelming and uncomfortable. Only by understanding the issues can you develop strategies that will provide the greatest chance of achieving your clients’ goals.

Bitcoin Miners See a Bullish Breakout on the Horizon

The price of bitcoin surged above $8,000 on Tuesday for the first time since May after the Group of 20 (G20) meeting in Argentina concluded last weekend with little urgency to take regulatory action on cryptocurrencies. In a communiqué, finance ministers and central bank governors expressed confidence that the technology underlying alt-coins “can deliver significant benefits to the financial system and the broader economy.”

Robos Prevent Fee Compression (and don't cause it)

Roboadvisors don’t cause fee compression; when used correctly by advisors, they are the solution.

Quarterly Strategy Update: What We Know, What We Think & What We Are Unsure Of

Recently, fears of a slowdown in global growth brought on by a trade war have led to turbulence in cyclical assets. The US Dollar has risen while commodities and emerging markets have struggled.

The Week That Was

Recent economic data reports, while mixed, continued to paint a picture of a strengthening economy in 2Q18. This improvement, expected to be seen in the GDP report to be released this Friday, partly reflects a rebound from a “soft” 1Q18. Averaging the two quarters should show a robust pace of growth in the first half of the year.

Tale of the Tape: Equity Investors More Concerned About Rising Inflation Than Slowing Growth

We calculate statistics for all developed and emerging equity markets around the world. For our mid/large cap indexes, we take the top 85% of all stocks in a given region or country and convert all prices into US Dollars.

Weighing the Week Ahead: A Delicate (and Temporary) Balance

Despite plenty of news, there was little market reaction. In a summer week including many vacations, we have a modest economic calendar but plenty of earnings news.

Proven Tactical Allocation Strategy Driven by Behavioral Crowds

C. Thomas Howard, PhD, is the CEO and chief investment officer at AthenaInvest, Inc., a Colorado-based investment manager. He is the co-manager of the Athena Global Tactical ETFs, a separately managed account. As of June 30, 2018, since its inception in September 2010, it has had an annualized return of 19.0%, outperforming its benchmark, the MSCI All Country World Index (ACWI) by 900 basis points. It is rated five-stars by Morningstar.

Weekly Market Summary

US equities have gained every month since April, and are up over 3% so far in July. Our long term view remains that SPX will make a new all-time high in the months ahead. The short term is less clear.