Geopolitical factors and higher-for-longer interest rates have taken the steam out of 2023’s equities rally the past few months. But the recent rate pause could clear the path for gains in the S&P 500 for the remainder of the year.

In this period of higher interest rates, the quest to capture alpha and mitigate risk in corporate credit requires a more refined approach.

The 2- through 30-year Treasuries rallied hard to drop yields from 12 to 18 basis points. By example, the 10-year Treasury price bottomed out at $91.86 (4.93%) and peaked at $95.25 (4.48%). This is a 3.4-point price swing or 45 basis point drop in yield.

Are interest rates finally taking their bite out of the economy? Friday’s news that hiring had slowed certainly adds to the case. Markets have anticipated a slowdown and the impact of rate hikes for months now.

Companies are rethinking office space.

Pay enough attention to small-cap stocks and ETFs as of late and it’s easier for even novice investors to identify at least two prominent points.

Following a strong first half of 2023, third-quarter returns were more challenged across almost all asset classes. One outlier was high-yield debt, which often serves as a way to de-risk equity exposures when stocks are under pressure.

After the October/November meeting, it seems that Fed officials have an added objective, as Fed Chair Jerome Powell said during the press conference that they needed to see interest rates “persistently high.”

Interest rates have been rising and yields have followed the same path. So traders bullish on bonds have essentially been seeing a repeat of 2022’s weakness. However, the recent pause in rate hikes by the Federal Reserve could bring more bulls back.

Housing markets are cooling but unlikely to end in a bust.

Policy changes at the Bank of Japan could potentially reverse capital flows, shift global yields higher, contribute to a stronger yen, and increase the value of Japanese stocks.

At a recent educational event organized by Franklin Templeton, Franklin Templeton Institute’s Senior Alternative Investment Strategist Tony Davidow hosted a day of panels that focused on alternative investments.

Given the response from China’s highest leadership levels, a fast recovery is preferable. The second largest economy will have to do this without a heavy influx of financial aid from the government. It would have to rely on measured steps in policy adjustments.

The Federal Reserve (Fed) elected to not raise the federal funds rate at the October/November 2023 Federal Open Market Committee (FOMC) meeting.

Amid soaring interest rates in the U.S., third-quarter issuance of ESG, sustainability, and related debt declined. But annual issuance of such debt is poised to be elevated — a theme that could carry over into 2024.

Financial markets have changed dramatically since balanced portfolios were introduced to investors decades ago. As markets evolve and grow more complex, active management plays a greater role in the success of these strategies, which offer a mix of 60% equities and 40% fixed income.

Financial flows have shifted this year. In the credit arena, bank lending has been moribund throughout the year, as standards tightened and interest rates rose. But borrowers still need capital, and private lenders are increasingly meeting their needs.

Adam Bloch, Portfolio Manager on our Total Return team, and Matt Bush, Guggenheim Investments' U.S. Economist, update our economic and market outlook.

Two weeks ago, the yield on the 10-year Treasury Note was hovering around 5%, and the S&P 500 was in contraction territory, down over 10%.

While often difficult, investing rules can help us maintain our focus and investment discipline in volatile or uncertain markets.

Advisors face a number of challenges in current markets, given risks and stock and bond correlations. They must grapple with how to invest smartly as well as keeping their clients invested in the traditional 60/40 portfolio.

While 3Q23 growth showed the economy expanded at a 4.9% annualized rate, it is important to remember that the GDP report is backward-looking.

Tesla’s stock has fallen 20% the past month as bears continue to apply pressure following the electric automaker’s Q3 earnings report. A Tesla turnaround or more selling will provide enough volatility for traders unsure of which side to take, which is where leveraged exchange-traded funds (ETFs) can help.

While bond prices are generally down, the income they provide is up, providing potential opportunities for fixed income investors.

In Q3, the strongest performance among factors was seen in developed ex-U.S. large cap and small cap and U.S. small cap, where Value outperformed by 4.9%, 3.3% and 3.3%, respectively. The weakest performance among factors was in U.S. small cap, where the Size factor underperformed by -2.4%.

Tighter financial conditions prompted Federal Reserve officials to take a step back from data dependence, and suggest a higher bar for future hikes.

More investors are turning to active management for their fixed income exposure. In a poll conducted by VettaFi, a third of respondents have more than half of their fixed income exposure tied to active management.

Higher macro and market volatility, along with greater dispersion, creates a favorable environment for active trading, according to K2 Advisors. Get the team’s latest hedge-fund strategy outlook.

It has been several weeks since ether futures ETFs have launched with little fanfare in early October. But since then, the crypto ETF market has seen several significant events which has caused the price of bitcoin to rise to near $35,000.

Our 2023 Manager ESG survey reveals that while more investors are implementing engagement and proxy voting strategies, there is still room for improvement.

Identifying problems is great. Identifying solutions is even better, especially when the politicians who are supposed to be solving our big problems don’t even try.

A transition away from fossil fuels is likely required to avert a significant warming of the planet. Rising temperatures could lead to crop failures, storm intensification, ocean acidification and deoxygenation, and infrastructure damage, among several other risks.

The return of inflation has altered the investing landscape in a way last seen more than half a century ago.

Amid hopes that a spot bitcoin exchange traded fund or multiple versions of that product will soon debut in the U.S., the digital currency is on a torrid pace in 2023.

Recent economic data, we believe, suggests sticky inflation with positive GDP growth is more likely in 2024 than a soft landing. We expect that interest rates will stay higher for longer on the back of increased Treasury supply and hawkish Federal Reserve rhetoric.

Ultimately, October was a positive month in several different areas for the precious metal. It saw an increase in not only its price but also investor engagement on VettaFi digital properties. On top of that, a pair of gold miner ETFs saw a bump in their performance.

Investment taxes can have a real impact on a portfolio. Investors should be aware of four key tax realities they currently face. Without a plan to manage these taxes, investors may find their ability to retire comfortably could be compromised.

It all starts with the firm’s flagship ETF, the KraneShares CSI China Internet ETF (KWEB). The fund is designed to capture the growth opportunity in China. The concentrated thematic China ETF has a 10-year track record — and it’s volatile.

With unanimity, the Fed opted to keep the fed funds rate unchanged but remains attentive to the idea that inflation risk should still be paid attention to.

Exchange is delighted to announce that Dr. David Kelly will return to the stage as a keynote speaker at Exchange 2024. As the Chief Global Strategist and Head of the Global Market Insights Strategy team for J.P. Morgan Asset Management, he has decades of industry experience.

As with most new expressions, “smart beta” is in the process of seeking an established meaning. It is fast becoming one of the most overused, ill-defined, and controversial terms in the modern financial lexicon.

I have always had an affinity for short-term interest rates, and it is from my days as an index arbitrageur.

The Fed kept rates unchanged at today’s meeting, but whether they are done with rate hikes or simply at a pause is yet to be determined.

A recent survey asking economists about the probability of recession next quarter shows a retreat in expectations from a high of 47 percent at the end of 2022 to just 34 percent, according to the Philadelphia Federal Reserve.

In this video, Chuck Carnevale, Co-Founder of FAST Graphs, a.k.a. Mr. Valuation will discuss the current investment opportunity in Realty Income (O), a popular real estate investment trust (REIT).

Meeting or beating a trading benchmark doesn't equate to good portfolio performance. In order to measure the success of a transition, utilizing a T-Standard transition performance measurement methodology is critical.

In smart beta, we find that factor returns—net of changes in valuation levels—are much lower than recent performance suggests. In fact, many of the most popular new factors (some 458 at last count) have succeeded solely because they have become more expensive.

It’s been a great year for alternative income strategies as inflation, interest rate, and recession risk fears dominated markets. Garrett Paolella of NEOS and Christian Magoon of Amplify ETFs joined VettaFi’s Tom Lydon to discuss alternative income opportunities at the Income Strategy Symposium hosted by VettaFi on October 27.

Advisors plan to allocate more to fixed income ETFs as 2024 approaches. In a poll conducted by VettaFi, attendees were asked what bond changes they were considering heading into year-end. And 60% of respondents said they plan to add to fixed income ETF exposure using proceeds from cash and/or equities.

The banking system has stabilized, but latent threats remain.