The Mutual Funds 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.

The Honeymoon of Free Social Media is Over

Most advisors are frustrated and ready to throw social media out the window, but the game is about to get even tougher. Social media won’t be free much longer. Here’s how I see it happening and what it will mean for advisors who are counting on it.

Optionality: Why We Use Derivatives to Manage Risk

In the first of a three-part series on getting returns in today’s bull market while protecting against the downside—running with the bulls without getting trampled, as we like to say—Global CIO Jeff Hussey explains why using put and call options may help.

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.

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.

Home Price Surge Continues in February, Led by Western States

With today's release of the February S&P/Case-Shiller Home Price Index, we learned that seasonally adjusted home prices for the benchmark 20-city index were up 0.83% month over month. The seasonally adjusted national index year-over-year change has hovered between 4.2% and 6.3% for the last two-plus years. Today's S&P/Case-Shiller National Home Price Index (nominal) reached another new high.

Global Trade and the Unsustainability of Federal Debt

While it may appear the post-Bretton Woods covenant was a win-win pact, there is a massive cost accruing to everyone involved. The U.S. is mired in economic stagnation due to overwhelming debt burdens and a reliance on record-low-interest rates to further spur debt-driven consumption.

Health Savings Accounts: The Intersection of Retirement and Health Care

The increasing costs of health insurance borne by employees and employers alike has spawned a variety of plans and strategies to help manage the expenses. Among these are health savings accounts (HSAs), which first came onto the scene in 2003.

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.

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.

ECRI Weekly Leading Index Update

This morning's release of the publicly available data from ECRI puts its Weekly Leading Index (WLI) at 148.9, up 1.1 from the previous week. Year-over-year the four-week moving average of the indicator is now at 2.71%, up from 2.70% last week. The WLI Growth indicator is now at 3.2, down from the previous week.

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.

After #ZuckerbergHearing, Investors Don’t Unfriend Facebook

Facebook’s margins could ebb this year, but they remain at elevated levels and profits could still grow meaningfully.

Five Tips for Clients on the New Tax Law

The Tax Cuts and Jobs Act as created a media frenzy and widespread confusion. With that in mind, I will provide a brief overview of the new provisions, followed by some practical ideas on how clients can reduce taxes.

Two of the Most Important Investing Paragraphs We Have Ever Read

These are two of the most important paragraphs we have encountered in more than 47 years of studying markets. DO NOT read them just once. Go off to a quiet spot that invites contemplation and READ THEM SEVERAL TIMES. Then reflect on all of the mistakes you have made in trading and investing.