In the aftermath of the Brexit vote, markets around the world responded swiftly and violently to the political and economic uncertainty that the “Leave” result presented. The British Pound lost roughly 10% against other major currencies, and several global stock markets were hit hard by the news. While U.S. markets…
Strong Dollar Impacts U.S. Corporations
One of the downstream impacts of the Fed’s recent monetary policy tightening is a steadily appreciating dollar, as it gains ground against the currencies of nations whose banks continue to ease policy. While a strengthening dollar is not without its benefits, it typically harms multinational corporations who have significant international…
(Asset) Location, Location, Location
When it comes to portfolio construction best practices, most of us are aware of the benefits of asset allocation and diversification. But with tax-deferred retirement accounts becoming an ever-larger part of the average investor’s investment portfolio, asset location has arguably become just as important as its much more famous allocation-focused…
Getting To Know Your 401(k)
In mid-December, defense contractor Lockheed Martin elected to settle an eight-year-old class-action lawsuit brought by more than 100,000 of its workers and retirees, alleging excessive fees inside the company’s 401(k) plan. While the suit was unusual in its size and scope, it was indicative of a recent trend toward greater…
Why Short-Term Interest Rates May Increase Faster Than Long-Term Rates
A unique dynamic has been occurring since the beginning of the year, as short-term rates have been slowly rising while long-term rates have gradually decreased. This dynamic is known as a flattening yield curve, and is generally interpreted as stemming from a decrease in long-run inflation expectations. In addition to…
