Great in theory, lousy in practice. That about sums up the historical experience of investing in “thematic” mutual funds and ETFs. The challenge of thematic investing, particularly in public markets, is that it charms you into imagining what’s possible at the expense of recognizing what’s probable. Its intentions are pure, but it’s the unintended consequences that inevitably lead to its demise.

Many investors rely on bonds as a core component of their asset allocation for income and stability. This research brief explores the opportunities and risks bonds can offer investors and their potential fit in a broadly diversified portfolio.

Turning the page to 2023, it’s the land of the unknown. It’s fair to ask: “Will things get better?” In response, one could say — it’s hard to imagine there’s much left that can surprise the markets.

On January 19th, the U.S. hit its debt ceiling at a staggering $31.4 trillion. Raising the debt ceiling requires Congress to set a new limit. It appears we may be on track for heated discussions surrounding the debt ceiling this year.

It’s common to make New Year’s resolutions – joining a gym, starting a new diet, or abstaining from alcohol for Dry January. The notion of “new year, new me” can extend beyond our personal lives and into our portfolios. This mindset may cause investors to act as though the slate is wiped clean and a new playbook is required. But after the clock strikes midnight on New Year’s Eve, the crystal ball isn’t less cloudy than it was before.

Long-term, globally diversified investors willing to tolerate short-term volatility in the pursuit of long-term returns can seem rare. This was especially the case last year. Over time, however, we believe the benefits of adopting this mindset can be enormous.

This paper introduces the methods and conclusions of evidence-based investing and relates how an investor can best capture market gains while avoiding the pitfalls of conventional approaches.

The downfall of Sam Bankman-Fried and his crypto empire FTX became THE financial news story of 2022 – even for non-crypto people. It garnered comparisons to Enron, Bernie Madoff, and everything in between.

Normally, an inflation reading of 7.7% is not good news. But things have not been normal for some time. Reported inflation for October was 7.7%, and in a backward way, that turned into the best news of the year. The S&P 500 was up 5.5% that day, which was its best one-day return of the entire year. It doesn’t take much good news for market returns to improve when the lows have been baked in.

The last 18 months have witnessed a return to normalcy among some diversifiers – small-cap value, energy stocks, and managed futures, to name a few. Others have been flipped on their heads entirely – hello, bonds! Yet one area has remained consistently disappointing from one decade to the next: unhedged exposure to international stocks from the lens of a U.S.-based investor.

Now that control of the House and Senate hangs in the balance, there will be no shortage of predictions about how the outcome of the midterm election may impact financial markets and the economy. Investment research analyst Daniel Noonan looks at the historical data.

The combination of undervaluation, underappreciation, and a potentially heightened period of demand could create an environment where “the old economy” is here to stay.