Target-date ETFs break new ground in retirement plans
After a previous setback, BlackRock is launching new target-date ETFs, aiming at the vast market of Americans without pension plans, a move seen as promising for the self-employed.
BlackRock is reviving its target-date fund ETF series with a fresh approach, targeting the trillion-dollar market of Americans lacking pension plans, nine years after its initial failure.
Will the Magnificent 7 remain a driving force in S&P 500?
Forecasting the S&P 500’s trajectory, most major banks in the US, including their asset managers, predict a marginally positive year for the index in 2024. However, views diverge significantly on the fate of the ‘Magnificent Seven’ tech giants.
Do the risks still outweigh the opportunities in China?
China, once a beacon for investors, is facing unprecedented challenges, leaving institutional portfolio managers worldwide questioning its investability. ‘A valid concern, but the question whether or not China is still investable is too complex for a simple yes or no.’
That’s according to Arthur Kroeber, founder of Gavekal Dragonomics, an independent research firm specializing in the economics, politics, and social issues of China.
US inflation data challenges ‘higher for longer’ narrative
The suggestion that the Federal Reserve will maintain elevated interest rates is wavering after Tuesday’s unexpected declines in U.S. inflation figures, much to the delight of stock and bond markets.
Foreign investors defy junk threat in Italy
Italian government bonds face a downgrade to “junk status”. Nevertheless, after years, the interest of foreign investors in this “ticking time bomb” is increasing.
The prolonged exodus of foreign investors from Italian government bonds has halted this year. According to research by Amundi Investment Institute, the asset class saw positive inflows of 35 billion euros in the first seven months, driven by foreign interest.
Forward rates: the unchallenged prophet
Predicting future interest rates is a favorite activity among economists and strategists, but Dimensional Fund Advisors takes a unique stance. “Forward rates are the best guide when positioning bond portfolios for higher expected returns,” they assert, dismissing the predictions of journalists and other ECB/Fed watchers.
Small caps endure rare drop but could be promising
Prices of small-cap stocks remain significantly adrift from their historical performance at the onset of a Fed hiatus, now offering a golden chance for value seekers. While a new study hails the performance small-caps during Fed pauses, critics cast doubt and warn that this historical trend is difficult to time precisely.
Not everyone shares fresh enthusiasm for bonds
Despite the resilience of the American economy, investors in Treasuries and bonds harbor stiff hopes for a quick Fed pivot during the third losing year. “But we aren’t there just yet,” said Fidelity’s global fixed income CIO Steve Ellis.
Geopolitical tensions reshape investors’ trust in Treasuries
The escalating conflict between Israel and Hamas challenges the appeal of US government bonds as a traditional safe haven.
Typically, geopolitical tensions drive short-term market moves towards safer assets like cash and US government bonds. However, on Wednesday, the yield on ten-year US government bonds increased by 0.07 percentage points to 4.9 percent, its highest since 2007. The 30-year bond yield also rose to 5 percent.
High-yield senior loans gain traction despite niche status
Senior loans, currently the highest-yielding bonds, witness substantial inflows in tracker funds.