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Market Outlooks
Productivity: The antidote to an inflationary era
Curated content for RIAs.
Head of Global Asset Allocation Ashwin Alankar explains how adopting productivity-enhancing innovations can help corporations defend margins and earnings in an era of higher inflation.
Market Outlooks
Treading carefully: A balancing act in 2023
Curated content for RIAs.
The Portfolio Construction and Strategy (PCS) Team introduce the latest Trends and Opportunities report, which outlines key themes for the next stage of this market cycle and their nuanced implications across global asset classes.
Fixed Income Insights
Mortgage-backed securities: Priced for imperfection?
Curated content for RIAs.
Head of U.S. Securitized Products John Kerschner and Portfolio Manager Nick Childs explain why they believe key risks are now largely priced in to fixed income markets, with selective areas – particularly mortgage-backed securities (MBS) – presenting an opportunity to provide favorable rick-adjusted returns.
Fixed Income Insights
Return of the Bond Market: Better Income Opportunities?
This piece is approved to use with clients.
Most investors incorporate bonds into a portfolio to provide diversification. Unfortunately, a smoother return path has not held true in recent years. But now the market has recalibrated, and yields have reset higher. Higher yields mean higher future returns. And for the first time in a while, you can make the argument that bonds provide true competition to stocks.
Behavioral Finance
Direct Indexing and the IKEA Effect
This piece is approved to use with clients.
The “IKEA effect” describes a cognitive bias that happens when people put in some form of labor to complete a project or finish a creation. Direct indexing won’t solve the behavior gap, but it has the potential to create better investor behaviors by allowing investors to play a larger role in the portfolio-building process.
Market Outlooks
Sleeping at Night? Consider Adding an Absolute Return Strategy
Perhaps the most concerning issue for multi-asset investors as we turn to 2023 is diversification—or the lack thereof in recent times. And while this is not the first time that the “traditional” correlation between U.S. Treasuries and equity markets has broken down—people tend to pay less attention when both are producing positive returns—it has been one of the worst years on record for the total return of a 60/40 portfolio in 2022.Herein lies the merits of discussing an absolute return approach with clients.