News & Research

BlackRock Gives Advice On Rate Hikes

 Karen Schenone, fixed income strategist with BlackRock, expects one or two more hikes this year, which keeps her safely within the consensus view. But there’s more to worry about with regard to the Fed than overnight lending rates. “There are also concerns over what happens when the Fed starts tapering its balance sheet, and what that will mean for long term rates,” she says, just posing the question and...

Why PIMCO Likes Munis

David Hammer, Head of Municipal Portfolio Management for PIMCO, says the best opportunity today for municipal bond investors is in the high yield space. That’s not just because of interest rates. It’s got more to do with bond spreads than yield itself.“The spread between a BB rated and an AA rated muni-bond is wider than BB and AA corporate bonds and that doesn’t happen often,” he says in this...

Where Davis Advisors Is Finding Opportunity

Chris Davis, portfolio manager of Davis Advisors says he is buying “what people hate.” For the most part, it’s paid off.U.S. banks are a particular favorite. He sees a “triple play” in financials due to rising earnings, multiples, and profits coming back to shareholders through dividends. He singled out Wells Fargo (), Capital One (), and J.P. Morgan () as examples of companies his team believes have gotten out...

World Outlook Bright, But Not Brilliant

In the new normal, 2.7% global GDP growth is a blockbuster success. That’s where we are heading in 2017, according to the latest assessment by the World Bank.The outlook is bright, but not brilliant."For too long, we’ve seen low growth hold back progress in the fight against poverty, so it is encouraging to see signs that the global economy is gaining firmer footing,” World Bank Group President Jim Yong...

June Is Candy Month. But Don’t Buy These Sweet Stocks

June is National Candy Month, a time to harken back to our younger years when we could mow down on a box of cracker jacks, and chase it with a Kit-Kat. San Diego-based advisor, Brent Wilsey of Wilsey Asset Management, says sugar is sweet but these stocks are not.Stay away from these four companies, he says. Here’s why:Hershey (): The company owns candy brands Reese’s, Jolly Rancher, Kit Kat...

Natixis Strategist: China Credit ‘Unsustainable’

The bears will love it! China’s credit growth is unsustainable. The credit bubble will pop eventually. But don’t go short on China just yet.David Lafferty, Chief Market Strategist for the $895.6 billion Natixis Global Asset Management firm, says the rate in which China is accumulating debt “appears to be unsustainable”, but the nation’s ability to control lenders and borrowers may help delay a total credit collapse.Many China contrarians have...

Salient Says Emerging Markets Infrastructure Is Mission Critical

Ask a global fund manager what they like about emerging markets and they generally will say its growing middle class. People in the developing world are getting richer. They are buying more toothpaste and eating more chicken. That’s been the story for some time now, particularly since the commodity super cycle wound down around seven years ago.Aaron Visse, the San Francisco-based portfolio manager for the $14 billion Salient Partners...

Asia: More Stable Than The West?

Asian nations are becoming more politically stable than the West, and that means there is less political risk in these markets than there are in countries like the U.S., says Aaron Balsam, senior analyst on William Blair’s Dynamic Allocation Strategies team.Balsam’s team recently did a whirlwind Asian tour, prompting him to write on May 18 that compared to populism in the U.S. and Europe, Asia’s political environment remains “relatively...

Amplify Launches New Oil-Hedged MLP Fund

Chicago-based ETF company, Amplify, launched a new exchange traded fund this week, a master limited partnership fund that protects its holdings by hedging oil futures.“Recent history has shown that oil price declines can have a significant impact on MLP share prices,” said Christian Magoon, CEO of Amplify ETFs. The Amplify YieldShares Oil-Hedged MLP Income ETF (AMLX ) is the fourth income-oriented ETF to launch on their Amplify YieldShares platform.Some...

Morgan Stanley Says Emerging Market Recovery Intact

Outside of China, the emerging markets story is a good one. It’s all systems go towards recovery from roughly four years of sluggish growth and – in Brazil and Russia – a recession.Of the top 21 emerging market economies measured by Morgan Stanley, 14 are now growing, two are stabilizing and growth in five countries is slowing. Sixteen emerging markets have reported first quarter data and the aggregate GDP...