The Asset Allocation Channel

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 $16,627 for an annualized real return of 9.77%.

What ‘Back to the Future’ Can Teach Us About Portfolio Rebalancing

This article draws parallels between the blockbuster film ‘Back to the Future’ and portfolio rebalancing—underscoring the importance of timing when rebalancing, why it should be a greater consideration in the due diligence process and how it can influence portfolio performance over time.

On My Radar: Investors are Willing to do Almost Everything; HY Price Trend Holds the Key

I attended an advisor summit in Chicago this past week. On stage was a good friend from S&P Dow Jones Indices. He referenced an article S&P published last fall about poor quality in the popular “leveraged loan” segment of the corporate bond market. Dull, I know, but hang in with me for a short few paragraphs, I promise this week’s missive gets better.

Is Your Portfolio Prepared for a Potential Wildfire?

In the decade since the global financial crisis, many investors have either actively steered—or ended up with—a large portion of their portfolios in investments tied to economic growth, namely stocks.

Building Unlisted Infrastructure into Your Portfolio – Overcoming Four Key Obstacles.

Does exposure to unlisted infrastructure benefit the average portfolio?

Why Stability May Be Enough for Cyclicals

Cyclicals rule. After getting trounced in Q4, year-to-date more cyclically oriented stocks and sectors have trounced “defensive”, less-cyclically exposed names. The trend has been even more pronounced during the past month.

Moving Averages: April Month-End Update

Valid until the market close on May 31, 2019.

The S&P 500 closed April with a monthly gain of 3.93% after a gain of 1.79% in March. All three S&P 500 MAs are signaling "invested" and four of five Ivy Portfolio ETFs — Vanguard Total Stock Market ETF (VTI), Vanguard FTSE All-World ETF (VEU), iShares Barclays 7-10 Year Treasury (IEF), and Vanguard REIT Index ETF (VNQ) — are signaling "invested".

Looking to De-Risk? High Yield Can Help

The S&P 500 Index hit an all-time high on April 23, thanks to improving investor optimism. But for some equity investors, market highs signal a good time to reduce downside risk. Shifting a modest allocation into US high yield is an efficient way of doing just that—significantly lowering overall risk while only modestly curbing potential returns.

Concerning Lack of Concern?

U.S. equity market gains since the Christmas Eve 2018 low have been impressive, and we don’t think a recession is in the near-term future—but sentiment is extended and investors should be cautious about chasing gains at this point; either in the United States or emerging markets. A near-term pullback would likely be healthy and could afford a better opportunity for investors who are looking to add equity exposure. On the other hand, those investors whose portfolios are now holding an outsized equity allocation could use the latest strength to rebalance back toward targets.

April 2019 Economic Outlook

Looking forward, we believe the U.S. economy will extend its steady expansion through this year and beyond. The global economy is positioned for moderate growth, with a pickup in the second half of the year. The relatively weaker earnings season currently underway reflects a high bar in terms of year-over-year earnings growth...

After the expansion: Are you ready for what might come next?

Diversification has been in hibernation during this bull market, but it may be coming out of its slumber.

Fees and Gimmicks Are Squandering Your Investment Returns

Unfortunately, most investors still don’t know which actions will help their odds of investment success. There is just too much noise and nonsense that confuses, scares and nudges us into making the wrong decisions.

Misreading the Signs: Is Yield-Curve Inversion a False Alarm?

The US yield curve dipped into inverted territory recently. But that’s not necessarily a bad omen for equities. There are several important warning signals—and lately the yield curve’s slope is the only one flashing red.

Don’t Let Home Country Bias Limit Your Investment Potential

It’s easy for investors to fall into what is known as “home country bias,” looking only within their own country’s borders for opportunities. Investors may be missing the boat if they don’t expand their opportunity set beyond their shores.

Weighing the Week Ahead: Why is the Market so Quiet?

The economic calendar is light so attention will again focus on Q1 earnings reports. Non-financial news will, no doubt, take center stage. The biggest market story seems to be the lack of action. That might be fine for you and for me, but not for the punditry.