The Capital Growth Channel

Enhanced Portfolio Diversification: The Power of &

Most investors, whether institutional or individual, tend to believe that stocks are a good—perhaps even the best—investment in the long run. However, the reason for expecting good performance from stocks is perhaps not always clearly articulated: Quite simply, it is because they are risky. Investors also tend to believe that investing in alternatives, such as managed futures, necessitates sacrificing some of their stock and/or bond asset allocation. This Insight explains how investors can have both the diversification benefits of managed futures, and their traditional stock/bond portfolio. Thus, the power of “&”.

US Tax Reform: What Investors Need to Know

On December 2, Senate Republicans managed to obtain enough votes to pass sweeping US tax reform legislation, but with several changes compared with the original House of Representatives’ bill. At more than 470 pages, the “Tax Cuts and Jobs Act” is certainly not a light read.

US Tax Reform: What Investors Need to Know

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Schwab Market Perspective: The Big Picture Heading into 2018

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A Look at NYSE Margin Debt and the Market

Note: The NYSE has released new data for margin debt, now available through October. The latest debt level is up 0.3% month-over-month. The October data gives us an additional sense of recent investor behavior.

Geopolitical Uncertainty and the Global Economy

Ben Bernanke and our panel of world-renowned advisors examine the outlook for global economic growth amid geopolitical shifts.

Capitalizing Potential

A massive amount of stock market capitalization is tied up in companies based on both their potential market share and hypothetical future profits. The popular arguments in their favor come from looking at a company’s total addressable market (TAM). Sky high price-to-earnings ratios and massive capitalizations are common in companies with a large TAM as we finish up 2017.

Home Prices Rose 6.2% Year-over-Year in September

With today's release of the September S&P/Case-Shiller Home Price Index, we learned that seasonally adjusted home prices for the benchmark 20-city index were up 0.5% month over month. The seasonally adjusted national index year-over-year change has hovered between 4.2% and 6.2% for the last thirty months. Today's S&P/Case-Shiller National Home Price Index (nominal) reached another new high.

Consumer Confidence Remains at 17 Year High

The latest Conference Board Consumer Confidence Index was released this morning based on data collected through November 14. The headline number of 129.5 was an increase from the final reading of 126.2 for October, an upward revision from 125.9, and remains at a 17-year high. Today's number was above the Investing.com consensus of 124.0.

A Wall Street Walk Through Time

Robert Penn Warren (April 1905 – September 1989) was an American poet, novelist, and literary critic who once said, “History cannot give us a program for the future, but it can give us a fuller understanding of ourselves, and of our common humanity, so that we can better face the future.”

US Earnings Growth: Businesses that Matter

Many investors are scrutinizing US earnings growth, given that stock valuations are somewhat elevated. Companies that can maintain a successful moat around their business in a changing environment are best positioned to deliver growth and returns.

How Technology Has Set Industries on a Journey of Opportunity

Technology is transforming nearly every industry, from healthcare to retail to transportation. Franklin Templeton Investments recently hosted an event examining the race to develop and market autonomous vehicles entitled, “Along for the Ride: Evaluating the Impacts of Self-Driving Cars.”

Bitcoin and Metcalfe's Law

Thoughts on cryptocurrencies and Bitcoin. With the recent run up in the Bitcoin price, cryptocurrencies have been garnering much greater attention from the public at large. A rapid price rise like this presents a difficult situation for potential new investors into the space.

World Markets Update

All eight indexes on our world watch list have posted gains for 2017 through November 27. The top performer thus far is Hong Kong's Hang Seng with a gain of 34.93%, followed by India's BSE SENSEX at 26.81%. In third is Tokyo's Nikkei with 17.69%.

Consumer Fundamentals Are Strong

Now that Black Friday has come and gone and Cyber Monday is upon us, you're going to hear a blizzard of numbers and reports about the US consumer. So far, these numbers show blowout on-line sales and a mild decline in foot traffic at brick-and-mortar stores.