Loomis Sayles

Best Blogs of the Week #250

Posted by Anu Heda on Nov 14, 2016, in Best Blogs of the Week , tagged with , , ,

POTUS 45. There’s not much for me to say that hasn’t been written all over the Internet. From reading 50+ blog posts related to the election, I can affirm asset managers tread lightly with opinion. Asset managers are more comfortable with sharing the news. With that in mind, four excellent posts.POTUS

Loomis Sayles – A Trump White House: Potential Market Impacts of the US Election – Trump’s proposals are structurally inflationary, but which measures will get passed and implemented is a large unknown.

M&G – President-elect Trump. 5 predictions on what happens next in the global economy and markets – Trump may not build a wall. But even if he does, it won’t keep the robots out.

Putnam – What we might expect with a Trump administration agenda – Trump does not have any specific plans to change Social Security or Medicare. He opposes any increase in the retirement age and would oppose raising the wage base for the Social Security payroll tax.

Russell – U.S. elections 2016: Trump wins White House. Markets react. – So we don’t see this election as having a lasting impact on markets.

Best Blogs of the Week #249

Posted by Anu Heda on Nov 07, 2016, in Best Blogs of the Week , tagged with , ,

Power. A President’s power on the global markets. As we’re one day from selecting (please let there not be a tie) the 45th POTUS, it’s a topic that is on many American minds. The Loomis Sayles post shares market impacts directly tied to Presidential power.

BlackRock – Are International Markets Back? – Very slowly, almost stealthily, international equity markets are clawing back relative to the United States. On a dollar-adjusted basis Japanese stock returns are now on par with the United States, with both the S&P 500 and the Nikkei 225 up around 4.5% year-to-date.

President and price to earnings since 1954

Loomis Sayles – Presidential Power: Are We At Risk for a Trade War? – The president has enormous powers to tear up trade agreements and, in many cases, to impose tariff penalties to advance US interests as interpreted by the president.

SSgA – It’s About Time: Using ‘Satisficing’ to Help Clients Make Better, More Efficient Decisions – For all investors, “satisficing” can be the foundation of a more structured process around investment decisions. Satisficing—which combines satisfying and sufficing, and was coined by behavioral economist Herbert Simon—is a way to manage uncertainties in the decision-making process, to stay focused on goals and to avoid being overwhelmed by unlimited information.

 

Gaudi!

Best Blogs of the Week #248

Posted by Anu Heda on Oct 31, 2016, in Best Blogs of the Week , tagged with , , ,

1 election post. That is all I will bring you. Promise. Overall here are the four most engaging posts from the last three weeks.

Columbia Threedneedle – Election 2016: Lifting the cloud of uncertainty – Changes to tax policies are likely regardless of who wins in November. But it’s questionable how much change can actually be effected considering an expected divided government even if Trump wins.

DistributionsJPMorgan – Fatter tails and endogenous risk – Although endogenous risks are difficult to quantify, there are ways to recognize and mitigate them. Analysis of flow data and correlation can provide insight into crowding and cross asset dynamics.  Stress testing can help quantify potential tail losses, and hedging via non-linear products such as options can help protect against the risks.

Loomis Sayles – Global Growth Themes and Forecast (Infographic) – We’re in a “lower for longer” bond yield environment as inflation in advanced economies decelerates and major central banks—the Bank of England, European Central Bank and Bank of Japan—pursue quantitative easing (QE).

Vanguard – Good grief! They’re commoditizing index investing again – While it may be tempting to think that the same application of technology can displace the human element of running an index fund, we have not seen that disruption and probably never will. Indeed, people remain one of the most critical differences across providers.

 

Best Blogs of the Week #243

Posted by Anu Heda on Aug 29, 2016, in Best Blogs of the Week , tagged with , ,

Negative interest rates? It’s been in the news quite frequently, but the Blackrock post here explains the topic better than I’ve seen elsewhere. Along with that post, three others worth highlighting this week as we approach summer’s end.

BlackRock – How do negative interest rates work? – who would buy a negative yielding security? Obviously not investors looking for income. However, there are institutions like some insurance companies and banks who hold government bonds for specific reasons, such as to meet regulatory requirements. These investors need to hold bonds for safety, no matter what the yield is.

BlackRock – Warming up to emerging markets – Within EM equities we prefer countries showing economic improvement or having clear reform catalysts, including India and ASEAN countries.

Loomis Sayles – The Connected Consumer: 3 Key Themes – I believe the future of the automotive industry will be defined by the ‘connected car’ – vehicles as an extension of our lives.

Invesco – What will real estate’s new sector status mean for investors? – Potential benefits include increased visibility, a larger investor base and a reduction in long-term volatility. We will closely monitor the REIT market for relative value opportunities that may arise from index and ETF changes, essentially nonfundamental drivers of performance, over the short term.