FINSUM

FINSUM

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Thursday, 21 October 2021 07:49

Fixed Income—Preparing for the Big Shift

The fixed income (FI) portfolios of institutional investors are evolving rapidly. Investment strategists around the globe are noting that, in the search for yield, many investors are...see more on our partner's site

We’re in the middle of the largest generational wealth transfer of all time. The Baby Boomers, previously the largest living generation, are expected to pass down roughly $68 trillion over the next 25 years to the Millennials...see more on our partner's site

Thursday, 21 October 2021 07:41

What is Hedged Equity?

Hedged equity is an increasingly popular term in investing. But what exactly is hedged equity? How can you use hedged equity in a portfolio? What are examples of hedge equity strategies?...see more on our partner's site

Thursday, 21 October 2021 07:39

Origins of the Aqueduct Investment Strategy

I was in the middle of the worst bear market in my career. After nearly a decade of enormous growth, the economy was self-correcting. Panic started March of 2000,  and there didn't appear to be any let up with selling...see more on our partner's site

Wednesday, 20 October 2021 20:35

The Bond Market is Getting Ravaged

The fixed income market is in some of the worst shapes in recent memory. Both government and corporate debt have lost a 15 year high of 4.4% this year. Regardless if inflation is being driven by central banks and trillion-dollar stimulus or the supply chain disruptions Powell is claiming the bottom line is inflation is eating at the ‘fixed income’ bond investors have relied on. The U.K., Euro area, and Japan haven’t exactly been a shelter dropping 7.5%, 8%, and 9.8% respectively. On top of all of this, the Fed and other central banks are tightening, eroding the value of existing bonds. There has been shelter if investors are willing to look to emerging markets, such as China but overall investors need to be more flexible and can’t rely on index bond investing to survive.


FINSUM: High-yield corporate debt is where investors are going to have to look domestically to get the return after inflation they are used to.

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