report by BlackRock
Results for ""
Behavioral Finance
Should I be worried? An investor litmus test
This piece is approved to use with clients.
As a child, I remember seeing my mother’s wooden plaque of The Serenity Prayer that she kept above our kitchen sink. For those not familiar with this popular prayer, it reads...
Market Outlooks
AAM Viewpoints: Global Monetary Policy: Easing Like Sunday Morning
This piece is approved to use with clients.
In anticipation of the Federal Reserve lowering rates next week at their meeting and the announcement this week that the European Central Bank (ECB) reduced rates to -0.50% and increased their purchasing of bonds a month, we believe it to be worthwhile to look at where we may be headed in policy and market action. Now we may be accused of being a bit presumptive about a future event such as an interest rate cut next week, however, we feel a bit confident in that the market is currently pricing in a 99.9% chance of a rate cut according to the Fed Fund Futures.
Market Outlooks
AAM Viewpoints: Is ESG A Magic Green Button?
This piece is approved to use with clients.
Have you read any research on ESG investing recently? If you have, then you’ll know that academic studies continue to stress the positive alpha-generating potential of ESG factors.
Market Outlooks
AAM Viewpoints: Contrarian Market Signals: What is certain about uncertainty?
This piece is approved to use with clients.
Contrary to narratives bombarding the markets right now, certain indicators are historically very bullish for equity assets. Though the anxiety about the flock of “black swans” being right around the corner helps to mitigate over exuberance, it astonishes me how many times we forget the previous prognostications and make new cases for the failed projection. Recently, I have been reflecting on Mark Twain’s quote: “I've had a lot of worries in my life, most of which never happened.”
Market Outlooks
AAM Viewpoints: Look Beyond the Volatility to Find Return
This piece is approved to use with clients.
Periods of volatility in fixed income and equity markets are nothing new but with each one comes a parade of teeth gnashing and hand wringing by experts extolling the virtues of selected investments while simultaneously predicting events often referred to as being much more dire than those we are experiencing at the moment. It seems, more often than not, that such bold predictions make for good headlines but rarely for investment results.
Market Outlooks
AAM Viewpoints: Reasonable Municipal Downgrades?
This piece is approved to use with clients.
For the past several months, the rating agencies have been imposing new standards in the ratings of municipal revenue bonds by imposing ceilings on these ratings linked to the issuer’s general obligation (GO) pledge. This has resulted in downgrades of some well-known, and not-so-well-known, issuers despite no change in the fundamental credit profile of the revenue bond, or the related general obligation bond, issuer. In fact, some of these downgrades occurred in the face of an improving credit profile.
Behavioral Finance
There is never a good time to invest
This piece is approved to use with clients.
Consider something you’ve always wanted to do but you’ve put off doing because it scares you. In fact, just think of something you’d eventually like to do but haven’t yet, since you may not even be aware of all your reasons for not having embarked on that journey just yet.
Behavioral Finance
The 5 money maps
This piece is approved to use with clients.
It is my hope that as we are better able to map the landscape of love and money, we will increasingly have a scaffolding for having better conversations about where and why our attitudes may differ.
Market Outlooks
Baby boom – Great for economic growth, but there isn’t one in sight
This piece is approved to use with clients.
At a high level, two factors drive economic growth: 1. growth in a labor force (e.g. more people working this year versus last year) 2. growth in productivity (e.g. people producing more this year versus last year). So, the basic formula for growing an economy is people + productivity = economic growth.
Behavioral Finance
Love and money
This piece is approved to use with clients.
Have you had a disagreement with a loved one recently about money? If so, you’re hardly alone. An American Express survey found money took the top worry spot among married couples (33%), far outpacing the second-place intimacy (11%), children (9%), and troubles with in-laws (4%).
Market Outlooks
AAM Viewpoints: Economic Problems in Europe and China Are Real – So Are The Opportunities
This piece is approved to use with clients.
Two of our high conviction best ideas for 2019 include Emerging Markets and Europe. After a dismal year for global equity markets in 2018, both markets have gotten off to a great start in 2019 roughly keeping pace with the United States. According to Bloomberg, year to date through March 15, Emerging Markets (as measured by the MSCI Emerging Markets Index) is up an impressive 9.73% while the S&P 500 outpaces being up 12.8%. Europe (as measured by the Eurostoxx 50) is up a respectable 12.87%. What should we expect for the balance of the year?
Market Outlooks
AAM Viewpoints: And the Beat Goes On... Liquidity and Leverage
This piece is approved to use with clients.
Continuing the discussion from last week about the discussion of Leverage and Liquidity, we focus a bit on why there are some economic and market metrics that don’t corroborate the “feelings” that permeate discussions.