Featured Resources
The Global Edge: Shaken, Not Stirred—The Impact from the Recent Banking Turmoil
What began as regional banking fear in the U.S. quickly spread to Europe. Two months later, the markets are still dealing with the fallout from bank runs and “walks,” whereby deposits flow out in search of better yields, not because of fear. In this edition of The Global Edge, our team of thought leaders explore the question of: how long can investors expect to see the potential ill effects from these developments as we move into the second half of the year?
Read the paper
Can We Westernize the Battery Supply Chain?
In a conversation from March 30, 2023, Christopher Gannatti, WisdomTree Global Head of Research, and Adam Woods, Senior Research Analyst, Global Coal Markets, for Wood Mackenzie, discuss the energy storage space as well as some of the intersections between these dynamics and the specific WisdomTree investment strategy.
Read the paper
Cybersecurity: The Megatrend for all Seasons
Why is cybersecurity important? How might one organize the space in a way that helps make it more digestible? Working with Team8, a venture firm with an exceptional level of experience in analyzing trends within cybersecurity, we gain the perspectives of two of the most powerful countries in cybersecurity.
Read the paper
Three Strategies for an Evolving Bond Market
Over the last year and a half, fixed income investors have faced a variety of challenges: a once-in-a-generation pandemic with unprecedented lockdown, a surge in inflation and rate hikes at a pace not seen since Chairman Volcker’s tenure. With the U.S. bond market expected to continue evolving, learn about three high-conviction themes for fixed income investors to consider now.
Gold Outlook to Q4 2023: Gold Could Hit a Nominal High…But a Real High Looks Out of Reach
Gold’s fortunes appear to be turning in early 2023. Using consensus economic forecasts, our model indicates gold could easily reach a new ‘nominal’ high this year (last reached in 2020). However, reaching a ‘real’ high (accounting for erosion due to inflation) looks out of reach. In a scenario where inflation falls drastically and the Fed makes an early pivot, gold prices stand to do well as bond yields decline more than in the consensus scenario (and using a lower level of inflation, the real value of gold is less discounted).
Read the paper
The Global Edge: China Re-opens: What It Means for Global Investors
As global investors stand weeks away from the end of 2022, it is interesting to note that some things just don’t change. While the financial markets seem to be endlessly waiting for some type of ‘Powell Pivot’ from the Federal Reserve (Fed), global central banks remain in full-tilt tightening mode. The Bank of Japan is, of course, the notable exception in the developed world.
Read the paper
Fixed Income: A Return to Normalcy
The Fed and the broader central bank community will continue to walk the tightrope between fighting inflation and avoiding a recession. Against this backdrop, the Fed is expected to raise rates further early in the new year before policy goes on an extended pause, and perhaps consider a rate cut before year-end.
Read the paper
2023 Economic and Market Outlook
The economic and market landscapes continue to evolve, and we expect some significant changes as we make our way through 2023. In our Economic and Market Outlook for 2023, we lay out some of the “known unknowns” we believe could significantly affect the investing landscape and dive into our thoughts covering Equities, Fixed income and Real assets and alternatives.
15 Years of Emerging Markets: Good Performers in a Tough Spot
Coming off our splashy launch of 20 ETFs in one shot in the summer of 2006, we launched a couple of emerging markets ETFs in 2007. We have been left frustrated, not because performance has been poor relative to the asset class, but because the asset class has been so down and out for virtually their whole lives. What we're left with is a bittersweet 15th birthday celebration.
Read the paper
The Global Edge: Volatility Remains A Market Constant
As global investors stand weeks away from the end of 2022, it is interesting to note that some things just don’t change. While the financial markets seem to be endlessly waiting for some type of ‘Powell Pivot’ from the Federal Reserve (Fed), global central banks remain in full-tilt tightening mode. The Bank of Japan is, of course, the notable exception in the developed world.
Read the paper
The Global Edge: Navigating the Uncharted Waters Between Growth and Inflation
With inflation raging across the globe, developed market (DM) central banks have been confronted by a force not seen in decades. Indeed, prior to the once in-a-generation COVID-19 pandemic, it seemed as if the challenge facing central banks was skewed more toward the perplexing lack of demand pressures that was prevalent, a complete 180-degree shift from where we currently stand.
Read the paper
The Dividends of a Dividend Approach
Investment managers and investors alike are always looking for better ways to invest. We believe indexing is highly efficient, and that ETFs have a number of benefits that make them a wise investment vehicle. But as history has shown us time and again, price is not always the best indicator of value.
Read the paper
Housing Could be the Next Cloud Over the Stock Market
Economic conditions feel like they are deteriorating rapidly. With losses in stocks, bonds and crypto, it's like you need to take out a personal loan to purchase a box of Cheerios. It's miserable, but then again, nobody is mailing back the keys to their house like they were in 2006.
Read the paper
Where is a Recession Being Priced In? U.S. Small Caps
With the S&P 500 Index flirting with bear-market territory, headlines are proclaiming a recession is being priced in. But at what probability? High-yield credit spreads—commonly viewed as a leading indicator of economic slowdowns—have spiked since the start of the year.
Read the paper
Forgotten Mid- and Small-Cap Dividend Payers
A stellar stretch of returns in recent years for mega-cap growth has led some investors to ditch allocations to mid- and small-cap laggards. History suggests this may be a mistake.
Read the paper
The Yield Curve's Crystal Ball is Shaky
It’s going to be a yield curve summer. Inversions—when 10-Year Treasury yields go lower than those of 2-Year Treasuries—have a recession-predicting track record that has become something of legend in Wall Street circles. The reason: having longer-duration bonds trade at lower yields than nearer-term securities is counterintuitive and rare. When it happens, it is a signal that something is awry in the economy.
Read the paper
Where Will This Rate Hike Cycle Take Us?
With much fanfare, the Federal Reserve (Fed) has finally begun its long-awaited rate hike cycle. Unfortunately, now comes the hard part. In other words, how is this process going to play out in terms of not just what the individual rate hikes will look like—25 basis points (bps) or 50 bps?—but also, where the terminal rate for the Fed Funds target range will ultimately climb to, and when? It is important to remember that the Fed will be drawing down its balance sheet at the same time, in what should be referred to as the polar opposite of quantitative easing (QE): quantitative tightening or QT.
Read the paper
A Multi Year Value Cycle Beckons
It’s possible a new value cycle commenced in November 2021, reversing 14 years of woeful underperformance relative to growth. When the value stocks were rising, growth stocks were outperforming. The cycle that may have ended in November 2021 exceeds even that of the legendary growth stock run of the 1990s.
Read the paper
India: 1.4 Billion People Emerge
India has experienced robust GDP growth and is constantly striving to reach industrialized status, but work still needs to be done. Jeff Weniger discusses how this presents an opportunity for investors, with a focus on how the country's demographics play a key role in its future growth.
Read the paper
Can Uncle Sam Protect YOU from Higher Rates?
With nearly $23.0 trillion in marketable public debt outstanding, Treasury securities (UST) are viewed as the most liquid asset class in the fixed income universe, offering money and bond market investors a high-quality solution, with a variety of different investment aspects. When interest rates are rising, it is important to understand the dynamics behind the different Treasury securities available in order to make an educated decision for your bond portfolio. Let’s take a quick lesson on the UST market.
Read the paper
Japan for 2022?
The markets may be handing a gift to Japan’s export machine in 2022, courtesy of a suddenly more hawkish Federal Reserve. The textbooks say that if one country catches an inflation shock while another does not, the currency of the former should weaken.
Read the paper
Cutting Volatility in Foreign Stocks
After looking at hundreds of asset allocations across this industry over the years, we have seen many investors own foreign stocks with no hedge. They have plenty of rationales, but the main ones are a desire to go along with the status quo, a discomfort with hedging or belief in currencies’ diversifying effect.
We strongly feel the status quo argument –that maintaining currency exposure because it is the common thing to do – is hardly a satisfactory explanation for following that path.
If at First You Don't Secede... Grexit Risk Again?
I’m often asked about unappreciated risks that can bite the stock market. Here’s one: the threat of a Greek exit from the eurozone—Grexit—coming back.
Planning for Potential 2020 Election Results
We are entering the homestretch of the 2020 presidential election season. With two polarizing presidential candidates, an ongoing pandemic, a recession, social unrest and a mail-in ballot controversy, this cycle is truly like no other. With the current environment in mind, we lay out four possible election outcomes, with our thoughts on how the markets may react to each one. Our hope is that advisors and investors can begin to think ahead and plan for different potential scenarios.
Read the paper
The Pressure Tightens on China's State-Owned Enterprises
Though China has made great strides in recent decades, filing more patents than any other country, elevating its university system and creating tech giants that rival those in Silicon Valley, The Chinese Communist Party’s obfuscation with regard to COVID-19 may prove a catalyst for Western capital to shift assets from China’s State-Owned-Enterprises to firms that have looser ties with Beijing.
Jeff Weniger discusses how eliminating SOEs from indexes may increase sales, employee efficiency and return on equity, boosting the aggregate quality factor in a portfolio.
Japanese Dividends Look More Secure Than U.S. Dividends
Jeff Weniger discusses why, in our COVID-19 world, Japanese dividends may be safer than U.S. dividends.
Echoes of Dot.com
The oft-cited Bob Farrell, the former head of research at Merrill Lynch who was famous for his 10 investment “rules,” often asserted: “(Market) excesses in one direction will lead to an opposite excess in the other direction.” Jeff Weniger assesses this claim and discusses where the "excesses" lay in our current market.
The Ghost of Sun Microsystems?
Jeff Weniger discusses the similarities between one of the faces of the 1990's tech bubble, Sun Microsystems, with some of today's popular technology stocks, and shares tips for how to avoid some risks these stocks may present.
The Stock Market's Five Stages of Grief
Jeff Weniger discusses recent market moves as it relates to "The Five Stages of Grief," and what the future implications could be.
Dividend Growth's Drivers: Picking Apart Quality
Read the paper
Market Insights: Don't Snooze on Hormuz
Read the paper
Our Industry's Secret: Cap-Weighted Investing was an Accident
Read the paper
Whitepaper: Don’t Layer Currency Risk on Top of Equity Exposure
Read the paper
Generating Passive Alpha in the Core of a Portfolio
Read the paper
High-Yield Credit: What's in Your Wallet?
Read the paper
High-Yield Credit: What's in Your Wallet?
Read the paper
Market Insights: Brextension
Read the paper
Can Uncle Sam Protect You from Higher Rates?
Read the paper
Market Insights: See Turkey, Think Italy, Own Germany
Read the paper
Market Insight: The Gipper Comes to China
Read the paper
Market Insight: Salvini's Rise: Culture Wars Trump Sound Economics
Read the paper
Tapping China's Emerging Potential
Read the paper
Market Insight: An Accident of History
Read the paper
Inside Our Smart Beta Approach for Corporate Bonds: Screen for Quality, Tilt Toward Income
Read the paper
Market Insight: GULF: The Global Power Chess Game's Critical Piece
Read the paper
Taking Advantage of the Japanese Equity Opportunity with Small-Cap Stocks
Read the paper
Market Insights: Can Uncle Sam Protect YOU from Higher Rates?
Read the paper
Market Insights: What Goes Up Must Come Down?
Read the paper
Market Insight: LIBOR's Fate: Could It Be Real This Time?
Read the paper
Inside Our Smart Beta Approach for Corporate Bonds: Screen for Quality, Tilt Toward Income
Read the paper
Market Insight: The Financial Crisis: A Stroll Down Maiden Lane
Read the paper
A Time-Tested Approach to High-Yielding Emerging Market Dividend Payers
Read the paper
The Dividends of a Quality and Growth Factor Approach
Read the paper
Unconstrained Bond Investing Q&A
Read the paper
Managing Risk In the Emerging Markets
Read the paper
Market Insight: The "Trump" Trade Deadline
Read the paper
