Last quote by Todd Rosenbluth
Todd Rosenbluth quotes
The relatively safety provided by both taxable and municipal bond funds is appealing to investors amid market uncertainty heading into the presidential transition.
The relatively strong stability and income investment-grade corporate bonds provide are particularly appealing amid the uncertainty that has materialized to start the year.
I would be extremely surprised if any companies that announced changes to their products and services would reverse course because of the delay or repeal of the fiduciary rule.
Investors are also embracing the lower-cost ETF alternatives, regardless of the asset class. With lower expected returns for bonds in 2017, costs will matter more.
Investors have been embracing riskier assets and moving away from safer municipal bonds and Treasuries, as the economy strengthens, rates move higher and confidence in a stronger 2017. The U.S. stock market has climbed higher on lofty expectations of a new presidency, but we think greater caution is warranted.
With the style and sector ETF market increasingly concentrated, ETF providers have launched narrower strategies that can complement the more established sector products. Socially responsible mutual funds have been popular for years, but ETF providers are hoping a younger generation of investors will want lower-cost index-based alternatives.
When sentiment is too bullish, securities can be priced to perfection and ripe for a sell-off.
We don't think investors should use strong ETF demand to confirm their belief that the market will climb higher in the near term.
With a projected Fed hike today and more to come in 2017, investors have rotated to equities.
Pimco Total Return Fund is lagging its Lipper peers in 2016 and is below average on a three-year basis. In contrast, Pimco Income Fund is outperforming its own peer group in both periods.
The environment has shifted and it's forcing many managers to start playing catch up.
You want some cash available. It gives you flexibility.
Investors sharply rotated out of large- and mid-cap mutual funds last week, just as the start of earnings season kicked off.
The trend to passive ETFs has persisted throughout the year. Active funds have failed to keep up with common benchmarks this year, and investors are looking for lower-cost alternatives.
Muni funds have had weekly inflows for nearly a year, and that could be coming to an end, which is notable.
If you are going to pay up for active management, that manager should have come close or beaten an index-based product.
In moderately-growing equity markets fees matter much more.
Tech stocks have done well this year, and we think they'll continue doing well so long as the economy shows strength.
Within the consumer discretionary sector, we see equity that is attractively priced. This sector has underperformed but it usually does well in the fourth quarter due to holiday shopping. It would also get a boost from a general economic rebound. On top of this, consumer discretionary isn't terribly interest-rate sensitive, so a rate increase should not greatly affect it.
Energy and utilities have done well year-to-date, but we have concerns about their performance going forward.
Investors have been moving money out of those products in 2016, with concerns about economic prospects in Europe, concerns about Japan, and adding on to it the dollar has not done what it did last year.
For hedge products to have success, investors need to buy into the theme that they're reducing risk. If and when the dollar strengthens again, the trade will return to popularity.
The underlying index matters.
Investors tend to view indexed ETFs as purely assets they can buy and ignore, and these changes are a reminder that investors need to regularly look inside their ETFs because the stocks and country weightings can change as the index providers refresh those indices.