The Municipal Bonds Channel

Second Quarter Hedge-Fund Strategy Outlook: K2 Advisors

In their second-quarter (Q2) 2018 outlook, K2 Advisors’ Research and Portfolio Construction teams share their views on why investors should not fear the return of market volatility—and why it may unlock opportunities for active managers. We believe offering these insights will help investors better understand the rationale for owning retail mutual funds that invest in hedge strategies.

Strategic Income Outlook

Written in 1606, Shakespeare’s words are just as relevant today. Tweets and eye-catching headlines dominate the news cycle and many conversations, but when you parse them for impactful content, you realize it’s mostly just white noise.

April 2018 Economic Outlook

Conditions we are seeing today are more normal than recent years, when investors grew accustomed to record low interest rates, a near-absence of inflation and the subdued volatility. We expect coordinated global economic expansion will continue through 2018, although improvements in some economic fundamentals may have peaked.

Two Ways Tax Reform Is Impacting Muni Bonds

The Tax Cuts and Jobs Act of 2017 included a number of changes that have directly impacted the $3.7 trillion municipal bond market.

Yes. It's a Bubble. So What?

With sky-high valuations in the US stock market, and what we believe is a tech bubble that has dangerous implications for other areas of the market, we suggest four actions investors can take now to avoid the inevitable bursting of the bubble, and which will likely benefit their portfolios’ long-term performance potential.

Don’t Fear the Yield Curve Reaper

The yield curve has flattened significantly recently and has elicited headlines of impending doom, heightened recession risk and investor consternation…is the worry overdone?

Do Equity Hedge Funds Really Generate Alpha?

Hedge funds, as represented by the Barclay index, can effectively be viewed as equity replacements. Further, the proper benchmark for equity hedge funds is target volatility strategies.

Boeing, from Purchase to Sale: A Value Investor’s Exercise of Patience, Discipline and Risk Reduct

From the time I was a little tyke, I knew the benefits of having cash available to make a purchase. With it I could easily buy something under very favorable terms when others were in desperate need of that cash.

Retirement Strategies in Pictures

Advisors providing retirement recommendations will find it helpful to use a graphical approach to show the year-by-year progression of funds available during retirement.

Ireland's Anxiety

In this issue, the Northern Trust economics team explores the challenges facing Ireland in Brexit, the continuing demand for eurozone debt, and wage growth within U.S. states.

Commodities Are Flashing a Once-in-a-Generation Buy Signal

The investment case for commodities, gold and energy is more compelling than at any other time in recent memory.

Volatility Awakens: A Market Review

The beginning of the first quarter was serene and pleasurable, as equity markets levitated on the back of increasing earnings expectations and solid world economic underpinnings. But the market euphoria didn’t last long.

China’s Growth Rebalancing Provides Opportunities for Bond Investors

After a decade of relying on investment and exports for growth, China’s effort to rebalance its economy toward consumer-led growth is well underway and should continue to build steam in 2018.

Global Credit Economic Summary & Outlook

Consumer spending and business fixed investment remained strong, pointing to continued domestic economic growth. Notably, business fixed investment growth, represented by private domestic investment, accelerated to 5.4% year-over-year growth in the fourth quarter of 2017, from a low of 0.71% in the third quarter of 2016.

At Cycle Turn, Fed Can Follow Two Possible Paths

Rieder and Brownback discuss how cyclical turning points result in market friction, even with solid growth, presenting the Fed with two potential paths.