News & Research

EPFR Global Flow Data: Smart Money Buying Europe

Retail investors are behind the eight ball on Europe. Institutional investors have consistent buyers for the past three months, says the fund trackers at EPFR Global. One look at Vanguard’s FTSE Europe (VGK) ETF over the period and you can tell. The fund is up 8.16%, beating the S&P 500 by nearly 200 basis points.The last week’s flows into European equity funds were the largest in over a year. "Our fund...

ESG Investing AUM Rises 33%. Is There A Greener Way To SPY?

Environmental, Social and Governance funds, known as ESG, may not be the easiest type of fund to identify. But for investors who want to put their money to work in companies that don’t pollute rivers, have good corporate governance, and treat their workers right, then this is the product line for them. ESG funds have seen assets under management rise 33% to around $8.7 trillion, according to the annual...

BlackRock Says Emerging Market Bonds Hitting A Wall

Emerging market bond funds are either about to hit or have already hit the wall. Call it the "border wall" if you want, but the Trump reflation trade in emerging market debt is on pause, BlackRock said in a note on Thursday. Investment advisors considering these securities may want to hold on until after the pending rate hike by the Fed in mid-March. BlackRock's iShares JP Morgan USD Emerging Market...

An Eight Year Bull Market: Something’s Gotta Give

When will it end? Some research firms tells us "not yet", others are sellers and allocating to markets perceived to have more value.  Meanwhile, the DJIA  continues to beat all expectations. We've heard it called the legislative trifecta trade, or the hope trade: regulation rollback, tax cuts, infrastructure. Until there's clarity on one of those items, the indices will keep going higher. USAA global multi-asset fund manager Lance Humphrey warns...

Snapchat IPO Next Week

Is Snapchat's Valuation Crazy? Yes. It is. Your teenager's Snapchat is less than a week away from becoming a portfolio piece. The company plans to list 200 million shares on the New York Stock Exchange under the ticker SNAP, in the range of $14 to $16 per share, valuing the photo-based social media platform at $23 billion. When it list on March 1, it will be  the largest U.S.-listed technology offering...

Global X: 5 Questions To Ask With Multi-Factor Strategies

Should you go all-in with value funds, momentum-driven stocks, or stick to large caps and low volatility? There's fund products for all of these individual factors. Some will outperform, others will not. But what about putting all four of those factors into one fund? "For a lot of investors in a performance driven world it can be difficult no matter how much conviction you have on a particular strategy, because...

The Border Adjustment Tax Fight Continues

The Financial Times is reporting on Wednesday that U.S. exporters have come out in favor of a proposed 20% across-the-board tariff known as the "border adjustment tax".  At least a dozen CEOs from companies like Boeing and Caterpillar, all employers of working class and middle income Americans that fit in Trump's wheelhouse of those he has stated to protect, signed a letter in support of House Speak Paul Ryan's...

CPI Data Indicates Another Fed Rate Hike

It looks like we are definitely going to get two rate hikes this year. Three or four? We won’t know until the second half. But with the latest CPI data showing inflation at 2.5%, and a fairly solid job market as measured by the unemployment rate at least, a March rate hike is looking more realistic. The betting odds are still against it. That will change if the economy...

Auerbach Grayson: Buy These Four Countries Now

Roughly one year ago, Brazil’s biggest oil firm Petrobras () was trading below $3 per share. Jim Cramer was on CNBC saying he wouldn’t touch it. "Too much debt", he said. Then within a month or so Cramer changed his tune. It was so beat up that it was impossible not to take the risk. He told his viewers to buy. Had they bought in February, they would have been up...

Event Driven Investing: Preparing For Le Pen

Are you ready for this? The betting markets are still picking French nationalist Marine Le Pen. It's still a nail-biter between her and Emmanuel Macro, but on Friday, PredictIt.org was still giving the euro skeptic Le Pen a 43% chance of winning the election in May. If she wins, it could spell curtains for the euro. W. Ben Hunt, a Chief Investment Strategist for Salient, thinks the next big volatility play...