The Smart Beta Channel

What is the Best Strategy for Investing in Egypt, Nigeria, and South Africa?

Recently there has been talk of the emergence of smarter ways to capture beta in African markets, the major ones in question being Egypt, Nigeria, and South Africa. Here’s our take on the three largest forces we see disrupting markets in Africa for the better over the next 3 years and how to best gain exposure to them.

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.

Charts for the beach - 2018

Don’t leave home without your summer essentials: sunglasses, sunscreen, towel and RBA’s Charts for the beach.

ISM Non-Manufacturing: Continued Growth in July, at Slower Rate

The Institute of Supply Management (ISM) has now released the July Non-Manufacturing Purchasing Managers' Index (PMI), also known as the ISM Services PMI. The headline Composite Index is at 55.7 percent, down 3.4 from 59.1 last month. Today's number came in below the Investing.com forecast of 58.6 percent.

S&P 500 ETFs

The S&P 500 index is arguably the most well-known worldwide. It is based on the market cap of the 500 largest companies in the U.S. The first-ever ETF, introduced in 1989, hoped to mimic the index, but was short-lived due to a lawsuit. Several S&P 500 ETFs have been brought to market since, and we show their performance, as well as the tracking error relative to the S&P 500 Total Return Index (which assumes reinvestment of dividends).

Market Cap to GDP: An Updated Look at the Buffett Valuation Indicator

With the latest July close data and Q2 GDP Advance Estimate, we now have an updated look at the popular "Buffett Indicator" -- the ratio of corporate equities to GDP. The current reading is 129.16%, down from 132.7% the previous quarter.

The Q Ratio and Market Valuation: July Update

The Q Ratio is a popular method of estimating the fair value of the stock market developed by Nobel Laureate James Tobin. It's a fairly simple concept, but laborious to calculate. The Q Ratio is the total price of the market divided by the replacement cost of all its companies. This update includes the July close data.

Fed Stands Pat But Gets Ready to Bid Adieu to Meetings Without Pressers

The Fed acted as expected by not acting on interest rates; and although there was no associated press conference, the statement had a few nuggets of note.

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.

Fed Meeting: Important Details to Come?

The Federal Reserve held interest rates steady and released a statement on 1 August that made only minor changes to reflect the more upbeat U.S. economy since the Fed’s June meeting. Despite the lack of surprises, however, we don’t think investors should write off the meeting just yet: The more interesting aspect may well come later ‒ when the meeting minutes are revealed in a few weeks.

Cutting through the Noise: Trump, Trade and Twitter

In 2018, President Trump’s tweets on international trade have led to bouts of market volatility and concerns of a global economic slowdown. Against this backdrop, Franklin Templeton Multi-Asset Solutions’ Matthias Hoppe explains why he thinks economic fundamentals will determine the fate of the global economy more than Trump’s words will.

Who Reads Financial Reports? Nobody!

For several years I have argued, based on comprehensive statistical evidence, that corporate financial reports―quarterly and annual statements―have lost most of their relevance and usefulness to investors.

A Look Back at the Markets in July and Ahead to August

As we begin August, let’s take a look back at the markets in July, plus what to expect in the month ahead.

Weekly Unemployment Claims: Up 1K from Last Week, Beats Forecast

This morning's seasonally adjusted 217K new claims, up 1K from the previous week's unrevised figure, was below the Investing.com forecast of 220K

Waiting for September

The Federal Reserve made no changes to monetary policy today and it barely changed the language of its statement. That makes sense to us because we haven't changed our outlook for monetary policy or the economy, either.