Key Points Short squeezes have become a popular investment tactic in recent years, with the GameStop short squeeze being a notable example. In addition to high short interest and thin trading, macro conditions and speculative technologies play a role in short squeeze activity. Periods of market uncertainty, such as during the global financial crisis or amid the COVID-19 pandemic, tend … Read More

With its riveting victory over France in the World Cup finals and the heroics of its all-time great team captain Lionel Messi, Argentina has good reason to celebrate. But as the post-World Cup glow subsides, the country faces significant and deep-seated economic and financial challenges. Inflation reached an annualized rate of 92.4% for the period ending 30 November 2022, placing … Read More

Key Points: Smart tax planning is crucial for preserving wealth in addition to risk management. Financial advisers should communicate the range of services they provide, including tax-planning strategies, to strengthen client relationships and attract prospects. Tips to enhance tax-planning game include building strong relationships with top accountants, upgrading technology capabilities, keeping clients informed about tax-planning opportunities, and expanding the approach … Read More

Key Points The importance of understanding the Federal Open Market Committee (FOMC) outlook has increased due to the correlation between fixed-income assets and equities. Machine learning (ML) and natural language processing (NLP) techniques can be applied to FOMC statements to analyze sentiment and anticipate changes in the federal funds rate. Loughran-McDonald sentiment word lists analyze FOMC statements, categorizing words as … Read More

“Exigencies are to be expected to occur, in the affairs of nations, in which there will be a necessity for borrowing. Borrowing in times of public danger, especially during foreign wars, has been found to be essential, even for the wealthiest nations . . . A nation’s creditworthiness is crucially important and must be well established . . . I … Read More

Key Points: Building strong relationships with clients goes beyond providing investment advice. Non-traditional activities, such as attending events and offering personal assistance, can help deepen the client-advisor relationship. Creating personal connections and showing genuine interest in clients’ lives can lead to long-term loyalty. After working with private clients for 27 years, I’ve done many non-traditional things beyond offering them investment … Read More

The Ongoing Influence of Fed Intervention The markets responded immediately when the US Federal Reserve announced it would intervene in corporate credit markets to bolster the economy amid the pandemic outbreak. Swift central bank action combined with fiscal stimulus drove an incredible economic rebound and a massive rally in risk assets that sent credit spreads back to pre-COVID-19 levels by … Read More

DC plan programs in the United States totaled $8.9 trillion in assets as of Q3 2022 and represent 22% of total retirement assets in the country. Plan sponsors should focus on increasing communication and educational efforts to encourage increased savings rates due to lower investment expectations. Reviewing and evaluating the investment menu is crucial to ensure plan participants have access … Read More

Investors tend to become more conservative and cautious after experiencing market bubbles and losses. Conventional wisdom suggests that higher risk is rewarded with higher returns, but research on the low volatility factor shows that low-risk stocks can outperform high-risk ones. Calculating correlations between long-short factors using monthly return data versus daily return data can yield dramatically different results, challenging established … Read More

Key Points: Bitcoin mining has a positive correlation with local stock markets, particularly in the United States. As bitcoin mining declines in a region, the correlation between bitcoin and local stock markets subsides. The correlation between bitcoin and local stock markets is stronger in regions with higher levels of bitcoin mining. Crypto is often seen as an uncorrelated asset class, … Read More