Commentaries

Timely market commentaries from leading investment firms

Attractive Valuations in Short‑Dated Investment Grade Credit

Amid overall caution on credit, we believe short-dated investment grade corporate bonds offer a compelling risk/reward profile today.

What's Driving the Downturn in Asia's Markets?

Matthews Asia CIO Robert Horrocks says markets may have overreacted in Asia to news of a trade war and tighter money.

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.

Quarterly Letter

Despite another interest rate hike in June by the Federal Reserve that raised the target federal funds range to 1.75-2.00%, along with plenty of increased tariff talk and (some) implementation by the Trump administration, the investment world was relatively calm in the second quarter of 2018.

Charts for the beach - 2018

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

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.

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.

Should Equity Investors Lose Sleep Over the Yield Curve?

A single line chart is keeping an awful lot of investors up at night: the US Treasury yield curve. It’s been flattening steadily since the end of 2016 and is nearly the flattest it’s been since 2007. We all remember what happened after that.

What Does It Take to Be in the Top 1 Percent? Not As Much As You Think

When you think of the top 1 percent of all income earners in American households, how much do you think this group rakes in? Millions? Tens of millions? What about the top 10 percent?