There are many factors that investors consider when looking for forward guidance on global interest rate trends. Kevin Flanagan explains why the German bund yield is one factor U.S. fixed income investors should keep their eye on over the next few months.
Investors who piled into defensive equities in 2019 now must face the prospects of reduced trade war risks and improving economic data, both of which will favor value over low volatility. Alejandro Saltiel and Matt Wagner explain how to position a portfolio if the value factor keeps its “hot hand” in 2020.
Enthusiasm for market-cap weighted indexing rests on market efficiency. Occasionally systemic asset bubbles or excesses in individual company valuations can challenge that efficiency. Matt Wagner raises the question: should indexes screen on fundamentals for inclusion, and for weighting?
Value is relative. In order to evaluate whether something is trading at a discount or premium, a critical step is establishing what to compare it to. We believe our factor driven approach can add value over market cycles versus simply owning the market.