Market Watchers Focus on Inflation
Some capital markets experts say the ‘transitory message’ on inflation from the U.S. Federal Reserve is beginning to overstay its welcome.
Tag: Equities
Inflation Fears Ease (for Some) Amid a Murkier Market Outlook
As some investment analysts argue inflation has peaked, and that it should soon return to an average annual rate in line with recent history, others are focused on the effects of growing wage pressure and the competition for labor.
Investing Aggressively Doesn’t Match Saving Consistently
Results of a new analysis published by Dimensional Fund Advisors suggest that embracing higher equity exposures prior to and during retirement is an inadequate tool to manage longevity risk.
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Investing
Average 401(k) Equity Allocation Surpasses 70%
The latest update of the Alight Solutions 401(k) Index shows the average asset allocation to equities rose in June to the highest level in 20 years. The index shows investors were content to watch their balances rise, as there were no days of above-normal trading activity. Average net trading activity was 0.009% of 401(k) balances, down from 0.011% in May.
A Markedly Positive Mid-Year Market Check-In
Millions of jobs have returned as the country has reopened, thanks to the positive impact of the COVID-19 vaccination program, but as the U.S. enters the second half of the year, sources say some ‘problems of success’ have emerged.
Some Experts Foresee ‘Supercharged’ Recovery Coming
Sources say 2021 was already coming together as a year of very strong economic growth, and with the passage of an additional $1.9 trillion in fiscal stimulus support, a broad-based recovery could come sooner than later.
Compliance
Investing
Senators Talk GameStop, Meme Stocks, Payment for Order Flow and More
Who gets to define best execution? Is T+1 or T+2 better for market stability? What even is payment for order flow? The Senate Banking Committee tackled all these questions and more at a dynamic Tuesday morning hearing.
Remember to Give the Gift of Rebalancing
As one expert tells PLANADVISER, repositioning portfolios after the recent run-up in risk asset prices could help mitigate future volatility.
Trends
Investing
Interest Rates’ ‘New Normal’
By bringing longer-run goals and strategy into alignment with changes in the economy, the Fed aims to strengthen support for economic recovery.
Coronavirus Rocks Long-View Capital Market Assumptions
Comparing asset managers’ five-year capital market assumptions published in late 2019 and early 2020 with the newly updated versions being circulated today is an eye-opening exercise that underscores the staggering economic impact of the coronavirus pandemic.
Investing
Market Observers Mixed on Where Stocks Go From Here
While the S&P 500 has recovered all its losses from the first quarter plunge, the comeback hasn’t been equal across all sectors. What comes next is anyone's guess.
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Investing
FOMC Action Cements New Normal for Rates, Inflation Outlook
The economy is always evolving, says Federal Reserve Chair Jerome Powell, and so the nation’s monetary and fiscal strategies for achieving its goals must evolve as well.
401(k) Participants Barely Touched Accounts in July
However, the movement from equities to fixed income continues, according to the Alight Solutions 401(k) Index.
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Investing
Managers See Stocks Buoyed by Stimulus
They warn that there could be a market pullback when second-quarter earnings start being reported and that the coronavirus’ legacy could be $1 trillion in business activity never returning.
401(k) Equity Allocations Edged Higher in October
While trading during the month favored fixed-income funds, with the positive stock market movements, average asset allocation in equities increased from 67.1% in September to 67.3% in October.
401(k) Investors Continue to Flee Equities
The third quarter marked the seventh consecutive quarter that 401(k) participants have moved their money from equities into fixed income, according to Alight.
Global Trade Tensions Define Investment Outlook for Many
Experts suggest the uncertain U.S.-China trade situation has weighed heavily on business investment, resulting in weaker manufacturing activity worldwide.
Investors Favored Fixed Income in the First Quarter
Nearly 90% of the days in the quarter saw net trading activity favor fixed income, according to the Alight Solutions 401(k) Index.
Participants Favored Fixed Income in February
On 89% of the trading days, 401(k) participants moved the majority of their money into fixed income, according to the Alight Solutions 401(k) Index