Despite the volatility in the stock market and inflation, a majority of survey participants agreed that gold may be a safe haven asset to introduce to clients worried about ongoing market uncertainty. With nearly three quarters of surveyed investors who currently have gold ETFs in their portfolios saying that the asset class has improved the overall performance of their portfolios.
Strategies
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As the U.S. industrial production growth stagnated for decades due to globalization and low-cost manufacturing in China, a transformative shift is now underway due to the resurgence of reshoring and the localization of supply chains. The Infrastructure and Jobs Act (IIJA) and the Inflation Reduction Act (IRA) serve as strategic enablers, designed to reinforce U.S. competitiveness across emerging industries such as renewable energy, electric vehicles, and semiconductors.
The APAC impact bond market has witnessed a steady growth trajectory, accounting for 25% of the global accumulated issuance, with China, Japan, and South Korea leading the way.
When people are out of the office, the financial markets often see less trading, which can cause big price swings following news events.
For fixed income investors who want to go active, strategies are available in a variety of wrappers, including ETFs. Active fixed income ETFs were initially limited to ultra-short bond strategies. But today, a wide variety of strategies exist.
The Fed's recent actions have led to a reevaluation of what it means to 'fight the Fed,' and it's crucial for investors to understand the difference between a trading opportunity and an investable rally.
As the sustainability-linked bond (SLB) market expands, we expect to see well-established norms at the issuer side and consensus among investors, as well as more transparent and relevant target settings which are imperative for fostering an efficient SLB market with minimal transaction cost.
Trying to outsmart the market has been around just as long as the market itself, and though it rarely works, many people keep trying. Not only are you less likely to outperform the market through market timing, you could further reduce your returns depending on how often you trade.
Nvidia's valuations today closely resemble Cisco at its peak in 2000, with a price-to-sales ratio of 42x, making it hard to make the math work for Nvidia stock to perform well from its current level.
Ultimately, one will prove more correct than the other, but a major divergence can persist for quite some time. The pools of investors have different enough viewpoints to allow the divergent theses to co-exist for a while.
Investors who believe that equity markets are currently overextended may consider adding defined outcome strategies to their portfolio, which aim to provide capital appreciation up to a capped level while offering the added benefit of buffering downside moves.
The clean energy transition is gaining momentum, with governments around the world implementing policies to boost energy security and mitigate climate change. However, the growth of clean technologies must accelerate even more to stay on track for net-zero emissions and 1.5°C pathways. With significant investment opportunities available, the outlook for clean technologies and related industries appears promising.