• Why megatrend ETFs offer long-term growth potential
    A game plan for investing in the future of innovation: megatrends. Megatrends are long-term global trends in technology, society, the environment, and demographics with high potential to change how we live and work. iShares megatrend exchange traded funds (ETFs) are engineered to help provide forward-thinking investors with access to long-term growth potential.  What follows is a chat about megatrend ETFs with Armando Senra, head of iShares for the U.S., Canada and Latin America. Chris Dieterich: Let’s start with a big,… Read more »
  • Where is U.S. economy headed?
    Signs of easing U.S.-China tensions have helped calm recessionary fears that gripped markets in recent weeks. We see little risk of an imminent recession, as ongoing policy support, the absence of obvious financial system vulnerabilities and resilient consumer spending helping extend the U.S. economic expansion. Yet a comprehensive U.S.-China trade deal is unlikely in the near term, and trade tensions could likely weigh on growth and pressure inflation, in our view. This could call for a more defensive investing stance.… Read more »
  • The attractions–and the limits–of fiscal policy
    Fiscal policy can do more heavy lifting when monetary policy alone is no longer enough. Even without any coordination, governments have room to borrow and invest more – especially in a low interest rate environment – to effectively stir activity. We have argued that there has not been enough government spending globally on infrastructure, education, renewable energy or other technologies to lift total factor productivity growth back to its pre-crisis trends and boost potential growth. The low interest rate environment… Read more »
  • Building the cities of the future
    Picture this: you wake up in the morning to a grueling iPhone alarm, roll out of bed, and put together breakfast. As you walk to the gym, you dodge scaffolding and turn up your music to wash out the sounds of construction. After the workout, you head to the nearest WeWork to start your job. In just a couple of hours, you’ve interacted with just a few of the many ways real estate is changing urban life. In our recent… Read more »
  • Is value investing dead?
    As far back as 1934, David Dodd and Ben Graham wrote about value investing in their seminal text, Security Analysis. The two Columbia Business School professors put forth the idea that stocks with low prices relative to their intrinsic value could outperform the market over time. Following their work, countless academics and practitioners confirmed their findings, making value strategies one of the most popular ways to invest. But why has value worked? Among many schools of thought is the idea… Read more »
  • Portion control isn’t just for meal time
    Late last summer, I returned to New York after two weeks at the Delaware Shore. Oddly, I felt horrible. I was at the highest weight of my life, with sluggish energy and general malaise. In fairness, for years, I pushed health and fitness behind work, believing that one had to come at the expense of the other. I needed change and tangible action to help me structure a path forward. I declared the balance of 2018, the “Fall of Fitness”… Read more »
  • Why growth remains valuable
    People will always prize what is scarce. Given an increasingly erratic trade dispute, low to negative interest rates and softening economic growth, investors are justifiably putting a premium on hedges, yield and earnings growth. The latter dynamic helps explains why, despite a relatively high premium, growth stocks continue to beat value. To the extent economic growth is unlikely to quickly rebound, this trend is likely to continue. I last wrote about growth and value in early June. During the past… Read more »
  • The investing implications of UK political upheaval
    We identified geopolitical risk as the key market driver in the second half of 2019 in our midyear investment outlook. The UK is the latest example, where deep divisions over a potential Brexit have unsettled the political landscape, paving the way for a broader set of potential outcomes. This could over time become a bigger worry for investors and businesses, in our view. We provide our take on the implications. The UK parliament returned from recess early last week to… Read more »
  • Caught between uncertainty and easy money
    Stock prices have spent August caught in a tug-of-war. On one side: increasingly accommodative central banks and easier financial conditions. On the other side of the rope: rising economic uncertainty driven by a quickly deteriorating trade situation. As I write this in late August, uncertainty is winning this month. That said, this is not 2018. Accommodative policy is helping to cushion both the economy and stock market. In late July I highlighted the role financial conditions play in equity market… Read more »
  • The monetary policy endgame
    The major global central banks continue to draw bigger guns in their battle against deflation, yet in some places, it appears to be of no avail. The fact is that the share of sovereign yields that are in negative territory keeps increasing and the average level of these interest rates becomes ever more negative. Further, quantitative easing (QE) purchases of sovereign debt have transitioned to purchases of corporate debt, and in some places equities; with inflation still elusive and improved… Read more »
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