Yesterday, the Fed completed its regular meeting and announced that it would increase interest rates by 25 bps, or a quarter percentage point.
The importance of Biden’s veto to save the DOL rule was not about assessing ESG factors. It was about affirming the role of the fiduciary in investment advice.
Lower interest rates and more liquidity are the keys to boosting confidence in the financial sector, but they impede the Fed's ability to fight inflation.
In a closely watched decision, the Fed lifted its benchmark lending rate by 25 basis points to a range of 4.75% to 5% at the conclusion of its March policy meeting.
Read our latest insight where Dan Suzuki explains what investors need to know about the Silicon Valley Bank collapse.
The Fed raised short-term rates by another 25 basis points (bp) today and made no changes to the expected peak for short-term rates later this year.
Income-seeking investors are accustomed to casting wide nets after years of low yields.
Silicon Valley Bank was a “vital cog” in the private market ecosystem, which leads to many questions—and opportunities—across the alternative investments landscape.
Both the leading indicators of growth and liquidity continue to suggest growth will slow as 2023 progresses.
U.S. stocks climbed for a second straight day Tuesday, with the tech-focused Nasdaq Composite ending near a five-week high, as jitters over bank instability eased.
Easing financial conditions globally have made Morgan Stanley “outright bullish” on growth stocks in Asia and emerging markets versus their value peers.
A question has arisen amid all the bank failures. How, with the bond market enduring its worst spasm of volatility in almost four decades, have benchmark-level stocks managed to glide along, oases of calm?
Some of the world’s biggest investors are looking beyond interest-rate hikes, bank failures and the threat of recession to one of the greatest fears of all money managers — missing out on the next big rally.
We have been reminding everyone that we believe we are unwinding a financial euphoria episode that Charlie Munger called the biggest of his career, “because of the totality of it.”
Banking turmoil continues to rattle the global markets and investor confidence.
CIO Larry Adam outlines the positive events that are outweighing negative developments and looks at dynamics to focus on in the week ahead.
This morning's release of the February existing home sales showed that sales surged to a seasonally adjusted annual rate of 4.58 million units from the previous month's 4.00 million, ending the 12-month streak of monthly declines. The latest number represents a 14.5% month-over-month increase, its largest since July 2020 and well above the Investing.com forecast of 5%. With that being said, existing home sales are down 22.6% compared to one year ago.
The simplest thing that can be said about current financial market and banking conditions is this: the unwinding of this Fed-induced, yield-seeking speculative bubble is proceeding as one would expect, and it’s not over by a longshot.
The national news cycle has careened from one extraordinary and alarming story to the next.
Help end investors understand that bailing out of bonds could mean locking in losses and missing a potential recovery.
Five of eight indexes on our world watch list posted gains through March 20, 2023. France's CAC 40 finished in the top spot with a YTD gain of 8.33%. Germany's DAXK finished second with a YTD gain of 6.94%, and China's Shanghai moved to third with a YTD gain of 4.71%. India's BSE SENSEX finished last with a loss of 5.28% YTD.
FINRA has released new data for margin debt, now available through February. The latest debt level is at 624.38 billion, down 2.6% month-over-month (MoM) and down 25.3% year-over-year (YoY). However after adjusting for inflation, debt level is down 3.2% MoM and down 29.5% YoY.
Steve Chiavarone doesn’t want to scare anyone, but what he remembers most from the last banking crisis was how sure most people were that it wouldn’t happen.
Markets have been trading as if the end of the world is at hand – but what most participants see, behind the recent financial turmoil and contagion fears, is a still-strong US economy, the MLIV Pulse survey shows.
Portfolio Manager Andy Acker explains why the healthcare sector could offer an attractive combination of defense and growth in today’s market.
UBS Group AG agreed to buy Credit Suisse Group AG in a historic, government-brokered deal aimed at containing a crisis of confidence that had started to spread across global financial markets.
Robust risk management is essential for fixed income investors. In his latest commentary, Marcus Moore explains why our sustainable investing team considers ESG factors as material business risks, similar to the traditional risks they also analyze.
Central banks endlessly fascinate me.
Franklin Templeton Investment Solutions explores the shared macro concerns that set the stage for the recent banking crisis, its ripple effects on the broader economy and implications for multi-asset investing.
New research confirms the valuable role that short sellers play in correcting the valuations of overpriced stocks.
A TIPS is risky in the short term and riskless in the long run, which is precisely the opposite of, and complementary to, a T-bill, which is riskless in the short term but, because of reinvestment rate volatility, risky in the long run.
With the collapse of Silicon Valley Bank, questions of potential “bank runs” spread among regional banks.
Sixty-six million Americans currently receive monthly benefits from Social Security, which, if nothing changes, is expected to be insolvent by 2035 at the latest. It’s time for Americans to take a greater role in their own retirement planning.
My “five-step investment process” provides an ongoing systematic framework for making portfolio decisions, and further incorporating financial planning and tax considerations into overall portfolio construction.
The yield on the 10-year note ended March 17, 2023 at 3.39%, the two-year note ended at 3.81%, and the 30-year at 3.60%.
The S&P 500 finished the week up 1.4% from last week despite being down 1.10% from Thursday. The index is currently up 2.01% YTD and is 18.34% below its record close from January 3, 2022.
Just over a year before Silicon Valley Bank’s collapse threatened a generation of technology startups and their backers, the Federal Reserve Bank of San Francisco appointed a more senior team of examiners to assess the firm. They started calling out problem after problem.
U.S. equities are lower as pressure has returned to the banking sector, which remains top of mind.
Following this week’s banking crisis and the return of government bailouts, investors and traders alike are once again calling for a Fed pivot.
The market gyrations are not rooted in a banking crisis, but in financial cracks from rapid rate hikes.
The latest Conference Board Leading Economic Index (LEI) for February was down 0.3% to 110.0 from January's final figure of 110.3, marking the 11th consecutive MoM decline. Today's reading was consistent with the Investing.com forecast.
Portfolio manager Peeyush Mittal and research analyst Swagato Ghosh say India has a fiscal playbook to chart a path of stability and growth.
In a dovish move, the central bank raises rates by half a point.
Implications of SVB and Credit Suisse on the European banking sector—check out highlights from our recent panel discussion with Kim Catechis, Investment Strategist with the Franklin Templeton Institute.
February's ZHVI came in at $327,514, practically unchanged from January and up 6.76% from February 2022. After adjusting for inflation, the real figures are -0.71% month-over-month and -1.16% year-over-year.
Is upheaval in the banking sector the prelude to a financial crisis, or just the biggest bump yet on the road to restoring order to the economy? Stock investors clinging to hopes this too shall pass are having their tolerance for pain severely tested.
When markets react, consider a broader historical perspective before changing your financial course.
Financial market volatility has followed the collapse of Silicon Valley Bank. Stephen Dover, Head of Franklin Templeton Institute, shares his thoughts on possible implications outside the United States.
What our experts think about today's market action.
Federal Reserve Chair Jerome Powell faces growing calls from key lawmakers and regulatory experts for an independent investigation into the collapse of Silicon Valley Bank, not just an internal review by the Fed board.
Credit Suisse’s problems revealed today stem from issues the company discussed last June in a profit warning.
The banking earthquake is sending shockwaves through the financial markets. The financial and economic aftershocks, soon to follow, are underappreciated and will prove worse than the earthquake.
The National Association of Home Builders (NAHB) Housing Market Index (HMI) is a gauge of builder opinion on the relative level of current and future single-family home sales. The latest reading came in better than expected (40) at 44, up 2 from last month, and is the index's highest reading in the last six months.
U.S. stocks are falling in pre-market trading as recent banking turmoil on this side of the pond made its way to Europe.
The Census Bureau's Advance Retail Sales Report for February was released this morning. Headline sales came in slightly below forecast at -0.4% month-over-month. Core sales (ex Autos) came in at -0.1% month-over-month, in line with the forecast.
The failure of Silicon Valley Bank raises questions for Fed policy and economic growth.
Government debt yields plunged globally as mounting financial-stability concerns prompted bond traders to abandon bets on additional central-bank rate hikes and begin pricing in cuts by the Federal Reserve.
101 Lesson of Structural growth versus recovery growth investing.
The extreme “tail” risk ahead may be disorienting.
When it comes to value, you can’t deliver too much. Here are five ways to deliver even more value to your clients this week – without beating them over the head.
The events that began with Thursday’s tumult in financial stocks and precipitated the FDIC takeover of Silicon Valley Bank and Signature Bank were swift.
Investors are zeroing in on key parts of the market for short-term dollar borrowing to determine if and how signs of systemic stress might be emerging after the biggest US bank collapse in over a decade.
Some of the world’s top money managers are sitting on a windfall after the collapse of Silicon Valley Bank spurred the biggest rally in US Treasuries since the early 1980s.
An acceleration in monthly core consumer prices seems likely to reinforce the Federal Reserve’s determination to raise interest rates to fight inflation, though the decision on next week’s move will be a tough call amid ongoing concern about financial turmoil.
Regulators' prompt response and the creation of a new lending facility should limit broader market fallout from recent bank failures, notes Chief Investment Officer Larry Adam.
The headline number for February came in at 90.9, up 0.6 from the previous month, but still below the series average of 98.2. The index is at the 9th percentile in this series.
Why did Silicon Valley Bank fail?
The high-profile collapse of Silicon Valley Bank last week is a story about bad debt, just not in the way most people think.
Federal Reserve Chair Jerome Powell’s strategy to speed up the central bank’s inflation-fighting efforts is unraveling in the wake of Silicon Valley Bank’s collapse.
Your clients need a hero – one who can help them navigate the uncertain world and keep them on track to living their best lives no matter what circumstances they face. That hero should be their financial advisor.
Senior Sovereign Analyst Jon Levy shares his analysis of the European Central Bank’s plans to unwind its largest quantitative policy measure, how it could affect markets and how it compares to previous policy changes.
Let’s explore the barriers that have kept alts in an ivory tower, why they’re becoming mainstream, and how advisors and their clients can incorporate alts into their portfolios.
My research confirms what academic theory predicts: There has been no historical alpha among dividend-paying stocks, including those with a history of increasing dividends. Investors are better served by “tilting” allocations to factors that have historically outperformed (e.g., value).
Silicon Valley Bank became the biggest US lender to fail in more than a decade, creating fears of contagion in tech and finance sectors in the US and around the world.
US authorities took extraordinary measures to shore up confidence in the financial system after the collapse of Silicon Valley Bank, introducing a new backstop for banks that Federal Reserve officials said was big enough to protect the entire nation’s deposits.
U.S. stocks are extending last week's sharp declines that have come amid worries regarding the ultimate impact on the banking sector of the recent collapses of SVB Financial and Silvergate Capital.
President Biden has proposed a $6.9 trillion budget that calls for reducing deficits and raising taxes on wealthy people and large corporations. There is a lot of spending in this budget that fuels inflation.
Here’s an update on the latest news involving Silicon Valley Bank and the implications for the Fed and markets, from Stephen Dover, Head of Franklin Templeton Institute.
Warren Buffett defended stock buybacks in Berkshire Hathaway’s annual letter, pushing back on those railing against the practice he believes benefits all shareholders.
If a picture is worth a thousand words, this will be the “longest” letter I’ve sent you in a while, as there are quite a few pictures. It may also be the most wide-ranging.
Like face recognition, artificial intelligence (AI), mRNA vaccines and other modern technology, Bitcoin is a key component of the ongoing, rapidly accelerating digital transformation.
Larry Culp is finally having a good year. General Electric Co. had been in nearly constant turmoil since Culp took over as chief executive officer with a turnaround mandate in 2018.
Short sellers are betting against Cathie Wood’s flagship fund more than ever before.
Greg Becker sat in a red armchair at an invite-only conference in Los Angeles last week, legs crossed, one hand cutting through air.
In September 2021, Silvergate Bank, specializing in digital currency, was performing well. In fact, the bank reported record-breaking growth in deposits and loans in 2020, thanks in part to increased demand for its services from clients in the cryptocurrency industry.
Investors sought the safety of bonds for a second day as jitters over a rout in bank stocks hit risk sentiment and traders speculated that rate-hike bets had gone too far too fast.
Review the latest portfolio strategy commentary from Mike Gibbs, managing director of Equity Portfolio and Technical Strategy.
U.S. equities are modestly higher in pre-market action following the February labor report that was only modestly above estimates.
Head of Portfolio Strategy David Dali explains why it’s an opportune time to add emerging-market exposure.
This morning's employment report for February showed a 311,000 increase in total nonfarm payrolls, which exceeded the Investing.com forecast of 205,000 jobs added. The unemployment rate rose to 3.6%.
Capital Growth
Market Focus Moves from the Fed to Financial Crisis
Yesterday, the Fed completed its regular meeting and announced that it would increase interest rates by 25 bps, or a quarter percentage point.
The Fiduciary is the "Decider"
The importance of Biden’s veto to save the DOL rule was not about assessing ESG factors. It was about affirming the role of the fiduciary in investment advice.
Phase Two of the Fed Follies
Lower interest rates and more liquidity are the keys to boosting confidence in the financial sector, but they impede the Fed's ability to fight inflation.
March Fed Rate Hike: Sometimes the Moments That Challenge Us the Most Define Us
In a closely watched decision, the Fed lifted its benchmark lending rate by 25 basis points to a range of 4.75% to 5% at the conclusion of its March policy meeting.
Some Thoughts on Banks
Read our latest insight where Dan Suzuki explains what investors need to know about the Silicon Valley Bank collapse.
Research Reports
The Fed raised short-term rates by another 25 basis points (bp) today and made no changes to the expected peak for short-term rates later this year.
Taming Biases in High-Dividend Equity Strategies
Income-seeking investors are accustomed to casting wide nets after years of low yields.
Alternative Investments Outlook Post-SVB
Silicon Valley Bank was a “vital cog” in the private market ecosystem, which leads to many questions—and opportunities—across the alternative investments landscape.
The Growth Slowdown Is Not Over Yet
Both the leading indicators of growth and liquidity continue to suggest growth will slow as 2023 progresses.
Stocks Climb Ahead of Fed Meeting
U.S. stocks climbed for a second straight day Tuesday, with the tech-focused Nasdaq Composite ending near a five-week high, as jitters over bank instability eased.
Morgan Stanley Turns ‘Outright Bullish’ on Asian Growth Stocks
Easing financial conditions globally have made Morgan Stanley “outright bullish” on growth stocks in Asia and emerging markets versus their value peers.
Stocks Are Shrugging Off Bank Woes With Help From Hedge Funds
A question has arisen amid all the bank failures. How, with the bond market enduring its worst spasm of volatility in almost four decades, have benchmark-level stocks managed to glide along, oases of calm?
Biggest Fear for Trillion-Dollar Funds Is Missing Next Rally
Some of the world’s biggest investors are looking beyond interest-rate hikes, bank failures and the threat of recession to one of the greatest fears of all money managers — missing out on the next big rally.
Funding Unprofitable Growth
We have been reminding everyone that we believe we are unwinding a financial euphoria episode that Charlie Munger called the biggest of his career, “because of the totality of it.”
Banking, Inflation, and the Fed: Where Do We Go From Here?
Banking turmoil continues to rattle the global markets and investor confidence.
Incremental Progress Emerging in the Banking Sector Fallout
CIO Larry Adam outlines the positive events that are outweighing negative developments and looks at dynamics to focus on in the week ahead.
Existing-Home Sales Surge in February, Ending 12-Month Streak of Declines
This morning's release of the February existing home sales showed that sales surged to a seasonally adjusted annual rate of 4.58 million units from the previous month's 4.00 million, ending the 12-month streak of monthly declines. The latest number represents a 14.5% month-over-month increase, its largest since July 2020 and well above the Investing.com forecast of 5%. With that being said, existing home sales are down 22.6% compared to one year ago.
Edge of the Edge
The simplest thing that can be said about current financial market and banking conditions is this: the unwinding of this Fed-induced, yield-seeking speculative bubble is proceeding as one would expect, and it’s not over by a longshot.
U.S. Banking System Faces Worsening Crisis in Confidence
The national news cycle has careened from one extraordinary and alarming story to the next.
Keeping Your Bond Perspective: Declines, Rallies and the Role of Bonds
Help end investors understand that bailing out of bonds could mean locking in losses and missing a potential recovery.
World Markets Update: March 20, 2023
Five of eight indexes on our world watch list posted gains through March 20, 2023. France's CAC 40 finished in the top spot with a YTD gain of 8.33%. Germany's DAXK finished second with a YTD gain of 6.94%, and China's Shanghai moved to third with a YTD gain of 4.71%. India's BSE SENSEX finished last with a loss of 5.28% YTD.
Margin Debt Down 2.6% in February
FINRA has released new data for margin debt, now available through February. The latest debt level is at 624.38 billion, down 2.6% month-over-month (MoM) and down 25.3% year-over-year (YoY). However after adjusting for inflation, debt level is down 3.2% MoM and down 29.5% YoY.
Bank Crisis Survivors Remember How Fast the Dominoes Can Fall
Steve Chiavarone doesn’t want to scare anyone, but what he remembers most from the last banking crisis was how sure most people were that it wouldn’t happen.
US Economy Has Investor Backing as Bank Risks Grow
Markets have been trading as if the end of the world is at hand – but what most participants see, behind the recent financial turmoil and contagion fears, is a still-strong US economy, the MLIV Pulse survey shows.
Two Sides of Healthcare, One Strong Investment Case
Portfolio Manager Andy Acker explains why the healthcare sector could offer an attractive combination of defense and growth in today’s market.
UBS to Buy Credit Suisse in $3.3 Billion Deal to End Crisis
UBS Group AG agreed to buy Credit Suisse Group AG in a historic, government-brokered deal aimed at containing a crisis of confidence that had started to spread across global financial markets.
Sustainable Investing: Opportunistically Managing Risk
Robust risk management is essential for fixed income investors. In his latest commentary, Marcus Moore explains why our sustainable investing team considers ESG factors as material business risks, similar to the traditional risks they also analyze.
The Fed’s Got Inflation Backwards
Central banks endlessly fascinate me.
A Multi-Asset Perspective on Recent Bank Turmoil: Don’t Lose Sight of the Macro Story
Franklin Templeton Investment Solutions explores the shared macro concerns that set the stage for the recent banking crisis, its ripple effects on the broader economy and implications for multi-asset investing.
New Evidence that Short Sellers Correct Overpriced Stocks
New research confirms the valuable role that short sellers play in correcting the valuations of overpriced stocks.
Riskless at Age 104
A TIPS is risky in the short term and riskless in the long run, which is precisely the opposite of, and complementary to, a T-bill, which is riskless in the short term but, because of reinvestment rate volatility, risky in the long run.
Bank Runs. The First Sign The Fed “Broke Something.”
With the collapse of Silicon Valley Bank, questions of potential “bank runs” spread among regional banks.
Pension Reform Showdown: Will The U.S. Follow France’s Bold Retirement Age Changes?
Sixty-six million Americans currently receive monthly benefits from Social Security, which, if nothing changes, is expected to be insolvent by 2035 at the latest. It’s time for Americans to take a greater role in their own retirement planning.
The Professor's Portfolio
My “five-step investment process” provides an ongoing systematic framework for making portfolio decisions, and further incorporating financial planning and tax considerations into overall portfolio construction.
Treasury Yields Snapshot: March 17, 2023
The yield on the 10-year note ended March 17, 2023 at 3.39%, the two-year note ended at 3.81%, and the 30-year at 3.60%.
S&P 500 Snapshot: Up 1.4% from Last Week
The S&P 500 finished the week up 1.4% from last week despite being down 1.10% from Thursday. The index is currently up 2.01% YTD and is 18.34% below its record close from January 3, 2022.
The Fed Was Too Late on SVB Even Though It Saw Problem After Problem
Just over a year before Silicon Valley Bank’s collapse threatened a generation of technology startups and their backers, the Federal Reserve Bank of San Francisco appointed a more senior team of examiners to assess the firm. They started calling out problem after problem.
Banking Sector Uncertainty Keeps Pressure on Stocks
U.S. equities are lower as pressure has returned to the banking sector, which remains top of mind.
Don’t Expect a Fed Pivot Just Yet
Following this week’s banking crisis and the return of government bailouts, investors and traders alike are once again calling for a Fed pivot.
No 2008 Redux, But Recession Coming
The market gyrations are not rooted in a banking crisis, but in financial cracks from rapid rate hikes.
CB LEI: Down 0.3% in February, Still Pointing to Risk of Recession
The latest Conference Board Leading Economic Index (LEI) for February was down 0.3% to 110.0 from January's final figure of 110.3, marking the 11th consecutive MoM decline. Today's reading was consistent with the Investing.com forecast.
India’s Balancing Act
Portfolio manager Peeyush Mittal and research analyst Swagato Ghosh say India has a fiscal playbook to chart a path of stability and growth.
The ECB Hikes Rates Amid Financial Market Volatility
In a dovish move, the central bank raises rates by half a point.
European Banking Sector—Taking Stock After Silicon Valley Bank and Credit Suisse
Implications of SVB and Credit Suisse on the European banking sector—check out highlights from our recent panel discussion with Kim Catechis, Investment Strategist with the Franklin Templeton Institute.
Zillow Home Value Index: February Update
February's ZHVI came in at $327,514, practically unchanged from January and up 6.76% from February 2022. After adjusting for inflation, the real figures are -0.71% month-over-month and -1.16% year-over-year.
Crisis Narrative Forcing Out All Others in Bank-Obsessed Markets
Is upheaval in the banking sector the prelude to a financial crisis, or just the biggest bump yet on the road to restoring order to the economy? Stock investors clinging to hopes this too shall pass are having their tolerance for pain severely tested.
Over Time, Markets have Proved Positive and Resilient
When markets react, consider a broader historical perspective before changing your financial course.
Banks and the Butterfly Effect—the Global Ramifications
Financial market volatility has followed the collapse of Silicon Valley Bank. Stephen Dover, Head of Franklin Templeton Institute, shares his thoughts on possible implications outside the United States.
Bank Worries Strike Again
What our experts think about today's market action.
Powell Faces Bipartisan Chorus Calling for Independent SVB Probe
Federal Reserve Chair Jerome Powell faces growing calls from key lawmakers and regulatory experts for an independent investigation into the collapse of Silicon Valley Bank, not just an internal review by the Fed board.
Credit Suisse’s Chickens Come Home to Roost
Credit Suisse’s problems revealed today stem from issues the company discussed last June in a profit warning.
The Aftershock That Will Follow Silicon Valley Bank
The banking earthquake is sending shockwaves through the financial markets. The financial and economic aftershocks, soon to follow, are underappreciated and will prove worse than the earthquake.
NAHB Housing Market Index: Confidence Edges Higher but Future Outlook Uncertain
The National Association of Home Builders (NAHB) Housing Market Index (HMI) is a gauge of builder opinion on the relative level of current and future single-family home sales. The latest reading came in better than expected (40) at 44, up 2 from last month, and is the index's highest reading in the last six months.
Stocks Falling as European Banking Worries Flare Up
U.S. stocks are falling in pre-market trading as recent banking turmoil on this side of the pond made its way to Europe.
Retail Sales Dip 0.4% in February After Strong January
The Census Bureau's Advance Retail Sales Report for February was released this morning. Headline sales came in slightly below forecast at -0.4% month-over-month. Core sales (ex Autos) came in at -0.1% month-over-month, in line with the forecast.
Bank Failures and the Fed
The failure of Silicon Valley Bank raises questions for Fed policy and economic growth.
Fed Traders Price In 100 Basis Points of Rate Cuts From May Peak
Government debt yields plunged globally as mounting financial-stability concerns prompted bond traders to abandon bets on additional central-bank rate hikes and begin pricing in cuts by the Federal Reserve.
Chinese Internet – the Boom and Bust Story
101 Lesson of Structural growth versus recovery growth investing.
Headed For The Tail
The extreme “tail” risk ahead may be disorienting.
Is There Such a Thing As Too Much Value?
When it comes to value, you can’t deliver too much. Here are five ways to deliver even more value to your clients this week – without beating them over the head.
The 2022-2023 Regime Change
The events that began with Thursday’s tumult in financial stocks and precipitated the FDIC takeover of Silicon Valley Bank and Signature Bank were swift.
What to Watch in Money Markets for Signs of Systemic Bank Stress
Investors are zeroing in on key parts of the market for short-term dollar borrowing to determine if and how signs of systemic stress might be emerging after the biggest US bank collapse in over a decade.
Fidelity, Schroders Win Big on Treasuries Bets as Markets Swoon
Some of the world’s top money managers are sitting on a windfall after the collapse of Silicon Valley Bank spurred the biggest rally in US Treasuries since the early 1980s.
Fed Rate Pause Is a Tough Call After Inflation Reaccelerates
An acceleration in monthly core consumer prices seems likely to reinforce the Federal Reserve’s determination to raise interest rates to fight inflation, though the decision on next week’s move will be a tough call amid ongoing concern about financial turmoil.
Recent Bank Failures a Potential Game-Changer for The Fed
Regulators' prompt response and the creation of a new lending facility should limit broader market fallout from recent bank failures, notes Chief Investment Officer Larry Adam.
NFIB Small Business Survey: Expectations for Better Business Conditions Remain Low
The headline number for February came in at 90.9, up 0.6 from the previous month, but still below the series average of 98.2. The index is at the 9th percentile in this series.
Making Sense of SVB, a Unique Bank with a Classic Problem
Why did Silicon Valley Bank fail?
Treasuries: "Risk Free" or "Risk Unlimited"?
The high-profile collapse of Silicon Valley Bank last week is a story about bad debt, just not in the way most people think.
Fed’s Battle Plan for Inflation Shredded by Financial Turmoil
Federal Reserve Chair Jerome Powell’s strategy to speed up the central bank’s inflation-fighting efforts is unraveling in the wake of Silicon Valley Bank’s collapse.
Be the Superhero Your Clients Deserve
Your clients need a hero – one who can help them navigate the uncertain world and keep them on track to living their best lives no matter what circumstances they face. That hero should be their financial advisor.
Can the ECB Teach an Old Dog New Tricks?
Senior Sovereign Analyst Jon Levy shares his analysis of the European Central Bank’s plans to unwind its largest quantitative policy measure, how it could affect markets and how it compares to previous policy changes.
Alts Investing is Mainstream: The Right Custodian Can Help
Let’s explore the barriers that have kept alts in an ivory tower, why they’re becoming mainstream, and how advisors and their clients can incorporate alts into their portfolios.
The Evidence Against Favoring Dividend-Paying Stocks
My research confirms what academic theory predicts: There has been no historical alpha among dividend-paying stocks, including those with a history of increasing dividends. Investors are better served by “tilting” allocations to factors that have historically outperformed (e.g., value).
Here’s How SVB’s Collapse Is Reverberating Around the World
Silicon Valley Bank became the biggest US lender to fail in more than a decade, creating fears of contagion in tech and finance sectors in the US and around the world.
Fed’s New Backstop Shields Banks From $300 Billion of Losses
US authorities took extraordinary measures to shore up confidence in the financial system after the collapse of Silicon Valley Bank, introducing a new backstop for banks that Federal Reserve officials said was big enough to protect the entire nation’s deposits.
Stocks Remain Under Pressure as Banking Worries Remain
U.S. stocks are extending last week's sharp declines that have come amid worries regarding the ultimate impact on the banking sector of the recent collapses of SVB Financial and Silvergate Capital.
Biden’s $6.9 Trillion Deficit Gamble
President Biden has proposed a $6.9 trillion budget that calls for reducing deficits and raising taxes on wealthy people and large corporations. There is a lot of spending in this budget that fuels inflation.
Silicon Valley Bank Failure Ripples Through the Market
Here’s an update on the latest news involving Silicon Valley Bank and the implications for the Fed and markets, from Stephen Dover, Head of Franklin Templeton Institute.
Buffett On Buybacks
Warren Buffett defended stock buybacks in Berkshire Hathaway’s annual letter, pushing back on those railing against the practice he believes benefits all shareholders.
Thousand-Word Equivalents
If a picture is worth a thousand words, this will be the “longest” letter I’ve sent you in a while, as there are quite a few pictures. It may also be the most wide-ranging.
Bitcoin Is A Key Component Of The Great Digital Transformation
Like face recognition, artificial intelligence (AI), mRNA vaccines and other modern technology, Bitcoin is a key component of the ongoing, rapidly accelerating digital transformation.
GE Chief’s Bold Moves Are Finally Winning Wall Street Approval
Larry Culp is finally having a good year. General Electric Co. had been in nearly constant turmoil since Culp took over as chief executive officer with a turnaround mandate in 2018.
Short Bets on Cathie Wood’s ARKK Hit Fresh Record on Rate-Hike Fears
Short sellers are betting against Cathie Wood’s flagship fund more than ever before.
SVB’s 44-Hour Collapse Was Rooted in Treasury Bets During Pandemic
Greg Becker sat in a red armchair at an invite-only conference in Los Angeles last week, legs crossed, one hand cutting through air.
Bank Dominoes Falling
In September 2021, Silvergate Bank, specializing in digital currency, was performing well. In fact, the bank reported record-breaking growth in deposits and loans in 2020, thanks in part to increased demand for its services from clients in the cryptocurrency industry.
Treasuries Surge as Bond Bulls Seize on Bank Fears, Jobless Data
Investors sought the safety of bonds for a second day as jitters over a rout in bank stocks hit risk sentiment and traders speculated that rate-hike bets had gone too far too fast.
Weekly Market Guide
Review the latest portfolio strategy commentary from Mike Gibbs, managing director of Equity Portfolio and Technical Strategy.
Stocks Trying to Battle Back From a Two-Day Rout
U.S. equities are modestly higher in pre-market action following the February labor report that was only modestly above estimates.
Add Emerging Market Strength in Global Weakness
Head of Portfolio Strategy David Dali explains why it’s an opportune time to add emerging-market exposure.
February Employment: 311K Jobs Added, Higher Than Forecast
This morning's employment report for February showed a 311,000 increase in total nonfarm payrolls, which exceeded the Investing.com forecast of 205,000 jobs added. The unemployment rate rose to 3.6%.