A lot of people feel like they’re putting enough money away for retirement. Still, only about 40 percent of workers say that either they or their spouse have actually tried to figure out how much money they’ll need to retire comfortably, according to the Employee Benefit Research Institute’s (EBRI) 29th Annual Retirement Confidence Survey.

Economic data has been deteriorating for much of 2019, albeit at a slower pace more recently. What should a fixed-income investor be focusing on in this weakening economic environment?

Gene: A weaker economic picture doesn't mean you have to avoid everything. Our approach is to take a defensive view of cyclical sectors and look at areas that are more domestically focused, domestically sourced and domestically consumed. We don’t see this as a time to hide under the table. It's not a liquidity crisis, like we saw in 2008, but it is a time to be defensive. Mortgage- and asset-backed securities continue to be attractive in an environment where yields are compressed. Service-related industries like technology, food and beverage, utilities and telecom are generally domestically focused areas and can perform quite well. Optimally, you want to have the flexibility to pivot as warranted by market conditions.

Can you speak to your duration profile right now and where...

A slowing economy at or near trend levels is vulnerable to shocks. The fiscal stimulus provided by the 2017 tax cuts is fading completely, and GDP growth is slowing to trend levels. Because of this, we think that the economy in 2020 will be more susceptible to setbacks due to a lowered ability to absorb shocks or surprises. The most common concerns are the ongoing trade war and negative credit surprises that could damage confidence and cause businesses and consumers to retrench. Forecasted returns have declined since our last analysis. Even before trade policy risks intensified, financial markets were signaling caution — culminating in certain parts of the yield curve inverting. Implied returns are lower for equities and bonds because nominal growth expectations are lower, and valuations for both equities and bonds are stretched. Protectionist policies are still key risks. Trade conflict and protectionism are likely to be permanent fixtures of our economy. Although...

A slowing economy at or near trend levels is vulnerable to shocks. The fiscal stimulus provided by the 2017 tax cuts is fading completely, and GDP growth is slowing to trend levels. Because of this, we think that the economy in 2020 will be more susceptible to setbacks due to a lowered ability to absorb shocks or surprises. The most common concerns are the ongoing trade war and negative credit surprises that could damage confidence and cause businesses and consumers to retrench. Forecasted returns have declined since our last analysis. Even before trade policy risks intensified, financial markets were signaling caution — culminating in certain parts of the yield curve inverting. Implied returns are lower for equities and bonds because nominal growth expectations are lower, and valuations for both equities and bonds are stretched. Protectionist policies are still key risks. Trade conflict and protectionism are likely to be permanent fixtures of our economy. Although...

Working through generational differences can be challenging, but it's important when building a strong team and understanding your client base. Learn about each generation's strengths and how embracing generational diversity can help grow your business.

It’s been more than a decade into the recovery that followed the Great Recession of 2008-2009. And many commentators and market participants believe that we’re in the late stages of the economic cycle that began as the crisis started to recede. To be clear, I’m not offering any predictions about the timing of the next downturn or the outlook for global growth. But as financial markets watch for early indications of change on the horizon, one conclusion is inescapable: the economic environment in 2019 still bears the imprint of the events that unfolded in 2008-2009. Far from breaking free of its effects, the global economy continues to be powerfully influenced by factors that either contributed to, or resulted directly from, the Great Recession.

Joe Brusuelas, Chief Economist at RSM, an audit and advisory firm, was quoted in the Washington Post last September, saying, “[The Great Recession] was such a shock to the economic system that it unleashed dynamics that we still...

Many of us are looking forward to the day we can retire, leaving us free to travel, see family or otherwise pursue our own interests on our own schedules. More than 70% of us are excited for retirement, according to the Employee Benefit Research Institute’s (EBRI) 29th Annual Retirement Confidence Survey.

But actually planning for your retirement can be stressful. You need to juggle saving for retirement with your near-term financial goals, decide when to stop working and determine how your savings and other sources of retirement income will cover all your expenses for the rest of your life. Not surprisingly, the EBRI survey found that about 60% of us feel at least somewhat stressed about preparing for retirement. And that anxiety often leads to inaction. According to the EBRI survey, only 42% of workers have even tried to calculate how much money they will need to retire.

Building a robust retirement plan with the guidance of a financial advisor can...

Whether or not you’re nearing retirement, you may be thinking about where your income will come from after the paychecks end. Many people rely on a workplace retirement plan, such as a 401(k), for a big part of their retirement income. In fact, more than half of U.S. workers are counting on it to be their major source of income, according to the Employee Benefit Research Institute’s 29th Annual Retirement Confidence Survey.

Kris: The Federal Open Market Committee (FOMC) made the decision to cut the fed funds rate by another 25 basis points in late October. And since then, language across Fed governors has become uniformly more constructive on the state of the economy. But because broad economic data continues to be mediocre at best, it appears that the Fed is putting a lot of weight on a trade deal coming through. Tell us, Ed, what do you think are the key takeaways from the rate cut?

Ed: For the entire year, we’ve seen the FOMC try to get comfortable with easing rates in response to an environment of weakening growth and very little inflation. Two things stood out to me as quite notable with their last decision. First, rather than stressing the downside risks to growth and inflation, their outlook is more balanced — so they've cut this time with a view of remaining on hold for the foreseeable future. And second, there’s a view that rates are now appropriately accommodative, which...

So for advisors seeking quality index construction, we’ve integrated our proprietary quantitative research to deliver RECS and REVS: two ETFs that aim to remove the bottom performers of the Russell 1000® Index (RECS) and Russell 1000® Value Index (REVS).

Interest rates (i.e., duration) are just one part of fixed-income investing. There are four risk factors that create opportunity in fixed income: duration, credit, inflation and currency. These risk factors aren’t highly correlated. Investors don’t need to be in or out of the bond market completely — a flexible approach can adjust to changing opportunities.

Continuing care retirement communities (CCRC) and senior housing facilities have historically been a sought-after category by institutional investors, who are often attracted to this credit sector because of its higher yield. Yield aside, investing in the senior living sector is supported by positive demographic fundamentals that should expand opportunities in this sector.

 

CCRCs fall within a broader category of municipal bonds called private activity bonds (PABs). Local and state governments issue PABs on behalf of private users — in this case mainly developers and operators of CCRCs — to meet the housing needs of their older residents. In a similar fashion, a municipality might issue school bonds, which also support a certain segment of the overall population.

 

The overall size of the CCRC market is still relatively small ($5 billion of issuance in 2018), but it’s doubled in size over the past decade.1 As a percentage of total new...

Economic data has been deteriorating for much of 2019, albeit at a slower pace more recently. What should a fixed-income investor be focusing on in this weakening economic environment?

Gene: A weaker economic picture doesn't mean you have to avoid everything. Our approach is to take a defensive view of cyclical sectors and look at areas that are more domestically focused, domestically sourced and domestically consumed. We don’t see this as a time to hide under the table. It's not a liquidity crisis, like we saw in 2008, but it is a time to be defensive. Mortgage- and asset-backed securities continue to be attractive in an environment where yields are compressed. Service-related industries like technology, food and beverage, utilities and telecom are generally domestically focused areas and can perform quite well. Optimally, you want to have the flexibility to pivot as warranted by market conditions.

Can you speak to your duration profile right now and where...

Working through generational differences can be challenging, but it's important when building a strong team and understanding your client base. Learn about each generation's strengths and how embracing generational diversity can help grow your business.

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Strong equity momentum and a decrease in equity volatility support higher stock exposures. We also continue to observe reductions in our recession indicators. We could see a return to neutral positioning early in 2020 if ongoing risks reemerge, such as trade tensions between the U.S. and China or Brexit turmoil. But between now and the end of the year, we don’t envision any catalysts for an equity correction. Treasuries no longer appear to have a clear trend in either direction. We saw a steady rise in yields until the fourth quarter of 2018, followed by a sharp pullback going into the summer of 2019. We are back to a world of rangebound yields relative to current levels, and neutral policy-level allocations to duration overall are appropriate.

Non-directional strategies — such as absolute return — present compelling opportunities.  We also believe commodities will do relatively well based on idiosyncratic risks for commodity markets that are asymmetrically tilted to...

Five-year forecast for asset class returns Solutions for a strategic approach to income 5 tips for taking distributions from a 529 plan Boston Triathlon  - a day of fun for a good cause

Many of us are looking forward to the day we can retire, leaving us free to travel, see family or otherwise pursue our own interests on our own schedules. More than 70% of us are excited for retirement, according to the Employee Benefit Research Institute’s (EBRI) 29th Annual Retirement Confidence Survey.

But actually planning for your retirement can be stressful. You need to juggle saving for retirement with your near-term financial goals, decide when to stop working and determine how your savings and other sources of retirement income will cover all your expenses for the rest of your life. Not surprisingly, the EBRI survey found that about 60% of us feel at least somewhat stressed about preparing for retirement. And that anxiety often leads to inaction. According to the EBRI survey, only 42% of workers have even tried to calculate how much money they will need to retire.

Building a robust retirement plan with the guidance of a financial advisor can...

It’s been more than a decade into the recovery that followed the Great Recession of 2008-2009. And many commentators and market participants believe that we’re in the late stages of the economic cycle that began as the crisis started to recede. To be clear, I’m not offering any predictions about the timing of the next downturn or the outlook for global growth. But as financial markets watch for early indications of change on the horizon, one conclusion is inescapable: the economic environment in 2019 still bears the imprint of the events that unfolded in 2008-2009. Far from breaking free of its effects, the global economy continues to be powerfully influenced by factors that either contributed to, or resulted directly from, the Great Recession.

Joe Brusuelas, Chief Economist at RSM, an audit and advisory firm, was quoted in the Washington Post last September, saying, “[The Great Recession] was such a shock to the economic system that it unleashed dynamics that we still...