IVOL News and Press, Quadratic Interest Rate Volatility and Inflation Hedge From 09/29/20

The global market is in the early recovery phase of the business cycle following the COVID-19 recession. This implies an extended period of low-inflation, low-interest-rate growth - an environment that usually favors equities over bonds. But after such a rapid rebound, an equity market pu...

The NASDAQ Composite Index broke a three-week losing streak gaining 1.1% last week while the S&P 500 and the Dow Jones Industrial Average extended losses for the fourth straight week. The main contributors to the recent pullback in the markets are last week’s announcement t...

For 94 years, the "average, annual" return for large-cap stocks, which per the Ibbotson data is the S&P 500, is above 10%, and probably closer to 12%. The only return period that matched or roughly approximates the 103-year average, annual return for the S&P 500 is the decade ...

"Enormous Uncerntainty." That is how SimplyWise stated the situation in their latest "retirement confidence survey." There are several critical issues in the index which encapsulate the ongoing financial distress that existed before the pandemic, but have since markedly worsened. ...

AB has been a longstanding proponent of investing globally within the bond markets. We advocate going global on a currency-hedged basis. In our view, US investors should remain in global bond markets because those negative non-US yields can be turned into an opportunity, thanks to...

The numbers are just monstrous. The Fed's own data illuminate the historic monetary disorder that today runs wild. Unprecedented stimulus and market intervention from the Federal Reserve and global central bank community unleashed epic market speculation (in the face of rapidly deteri...

This week saw a flurry of Fed speeches. All Fed governors argued for additional fiscal stimulus. All Fed governors were concerned about the current status of the US economy. For further details see: Central Bank Week In Review (9/21-9/25)

Question: What does the fixed income market have in common with the Sistine Chapel? Answer: The main action is on the ceiling. That’s the consequence of near-zero interest rates, which means a major top for fixed-income asset prices. Survival in this asset classes means man...

We believe we have started a new economic expansion and new bull market in stocks, and that we are in the early phase in which stock returns are the greatest. This is why we view any correction in stocks to be a buying opportunity to increase our exposure to stocks and commodities abo...

Coming into COVID-19, a chunk of client bond money was in higher yielding money markets since credit spreads (in my opinion) offered little value prior to March 2020. After the 35% correction in the S&P 500, and upon the announcement of the Fed liquidity programs, all that money w...