Category Archives: Uncategorized

Rising Rates Arrive

Which of the figures below belong together?   It’s obvious, even if analogies aren’t your strong suit, that A is like C and B is like D.  A and C are not like B and D. The economic relevance of this simple visual exercise is this: At its March 2017 meeting, the Federal Open Market Read more […]

Next Generation Retirement Investing

For many plan participants, the goal of a retirement account is to provide a steady stream of income that will sustain their standard of living in retirement. Therefore, participants need a framework that aligns the management of their savings with their retirement income goal. This framework has three related components: Risk management that addresses the Read more […]

Futures Prices for Europe’s Fear Gauge Jump. U.S. Investors say, “Le Pen? Le Who?”

Futures tied to VSTOXX, the Eurozone’s version of VIX, are signaling risk ahead. The French elections, which take place April 23 (first round) and May 7 (run-off election) and the possibility of Marine Le Pen leading France’s exit from the Eurozone appear to have spooked European options investors. They are now paying higher premiums for Read more […]

Capturing the World’s Largest Growth Story: the Emerging Markets Consumer

3 billion people entering the middle class1 and $30 trillion of annual consumption by 20252 – these are two numbers that summarize the drastic demographic and economic shift currently happening in emerging market countries and what McKinsey & Co. has called, “the biggest growth opportunity in the history of capitalism.2” The Dow Jones Emerging Markets Read more […]

Remarkably Unremarkable

In geopolitical terms 2016 was a tumultuous year. From the outcome of the Brexit referendum to the surprising conclusion of the U.S. presidential election, 2016 was a year of political surprises. The markets, braced or not, reacted differently in each case. We saw heightened correlation in the aftermath of Brexit and observed higher dispersion immediately Read more […]

Employer Self-Insured Trends Still Moving Upward

According to the S&P Healthcare Claims Indices, employers should be cautious about getting comfortable with trends in the 4.5%-5% range.  While the most recent data indicates that trends dropped from almost 5% in June 2016 to around 4.5% in July 2016, the overall movement of the trend is still upward.  The S&P National Medical Healthcare Read more […]

Our Humble Solution to Unite Europe

Henry Kissinger famously said, “Who do I call if I want to speak to Europe?” In the world of investments, a similar question could be asked, “What index do I use if I want to invest in Europe?” The answer isn’t apparent, and this is why: the leading regional index in Europe, the EURO STOXX Read more […]

Plus ça change, plus c’est la même chose

This coming Sunday, December 4, 2016, a constitutional referendum will take place and the citizens of Italy will decide on a proposal by Prime Minister Matteo Renzi that, if passed, would mean major changes to Italy’s legislative system. The Prime Minister has stated his intent to resign if the “No” camp triumphs. The political stakes Read more […]

Why MSCI and S&P Dow Jones Indices Began Working Together in One Important Way

MSCI and S&P Dow Jones Indices respect each other, as good rivals should, but we often disagree. We see South Korea as a developed market and MSCI classifies it as emerging; we have 500 companies represented in our leading US index and MSCI has 295; we have our own free float methodology and they have Read more […]

The Economy After the Elections

Right Now:  The economy is in better shape than what many incoming presidents face. GDP is growing, unemployment is 4.9% and inflation is about 1%. Interest rates are already rising with the 10 year treasury topping 2% yield and the Fed is signaling a December increase in the Fed funds rate.  US stocks are enjoying Read more […]