Asset Allocation
Remember When We Thought it was Transitory?
Principal’s Jablonski sketches out why rising interest rates are investors’ friends in 2023.
Tag: Federal Reserve
Research
Howard Marks: A ‘Sea Change’ Has Come to Investing
Risk aversion and higher rates are now embedded features, which has big implications, the celebrated investor says.
News
BCA: Why the Dollar’s Surge, Now Ebbing, Will Resume—After Some Tumult
Once economic and geopolitical turmoil subsides and rates tick down, the buck will be back, the research firm says.
So When Will Stocks and Bonds Un-Link?
It’s a rarity for the two main asset classes, almost always negatively correlated, to perform a duet. Here’s what allocators can do about that.
Regulation
Federal Reserve Proposes Climate Risk Framework for Large Financial Institutions
The framework is essentially the same as those proposed by the OCC and FDIC and calls on large financial institutions to account for climate-related physical and transitional risks in its business strategy.
Asset Allocation
BlackRock’s Suggested 2023 Buys: Investment Grade Corporates and Just 2 Other Bond Types
Still-high inflation and an expected recession call for slighting stocks and most other categories, the asset kingpin advises.
Research
Higher Interest Rates Are Living on Borrowed Time, Jeremy Siegel Says
The Federal Reserve won’t be able to ignore a slowing economy and will reverse course, the economist predicts.
Pensions
What Do Pension Funds Worry Over Most?
NEPC survey says they are leery of rising interest rates, the Fed’s ability to handle inflation and profit margins.
Risk
Why Bond Liquidity May Be Headed for Trouble
As Yellen warns of problem selling the obligations, fixed-income volatility resembles that of stocks. Other hazards lurk.
Research
What Ails the Stock Market: A Stimulus Hangover
Bank of America puts a $13.5 trillion price tag on Washington aid, which set the U.S. up for its current economic travail.
Asset Allocation
BlackRock Touts Its Ideal Asset Mix to Hit Allocators’ Target Returns
The best chance of reaching a 7.5% gain is to go heavily into bonds, its study contends.
Market Moves
The Big Question: How Hot Will the New CPI Be?
A forecast from the Cleveland Fed is not encouraging. But Brainard and Evans have soothing words.
Research
Shorting Bonds? The Case for a Seldom-Used Tactic
Allocators and other investors shy away from the practice, but a research paper argues that rising rates pose an ideal opportunity for negative bets.
Newsmakers
Dalio’s Magic Number for Tanking the Economy
At a 4.5% benchmark interest rate, economic growth will start to suffer, hedge fund guru says.
Risk
Welcome to September, the Worst Month for Stocks
Over the past three-quarters of a century, the market has lost an average 0.56% during the upcoming month, CFRA data show.