Tuesday , April 20 2021
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The author James Picerno
James Picerno
James Picerno is a financial journalist who has been writing about finance and investment theory for more than twenty years. He writes for trade magazines read by financial professionals and financial advisers. Over the years, he’s written for the Wall Street Journal, Barron’s, Bloomberg Markets, Mutual Funds, Modern Maturity, Investment Advisor, Reuters, and his popular finance blog, The CapitalSpectator.

The Capital Spectator

All The Major Asset Classes Posted Gains Last Week

It was hard to lose money last week as global markets rose across the board for trading through April 16, based on a set of exchange traded funds. Led by foreign and US real estate shares, all the major asset classes advanced over the previous week’s closing prices. Property shares ex-US led the party via Vanguard Global ex-U.S. Real Estate (VNQI), which rose a hefty 2.6% – the fund’s best weekly increase since November. At the close of trading on Friday, the ETF was on the...

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Macro Briefing: 19 April 2021

* More than half US adults received at least one dose of a Covid-19 vaccine* Arms race heating up on Korean peninsula* Investors focus on inflation concerns as earnings reports roll in* Can hiring keep up with the accelerating economic rebound?* China’s central bank calls bitcoin an ‘investment alternative’* Global consumers stockpile extra $5.4tn of savings during pandemic:* New housing construction in US reached 15-year high in March* US Consumer Sentiment Index rises to one-year...

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Book Bits: 17 April 2021

● The Day the Markets Roared: How a 1982 Forecast Sparked a Global Bull MarketHenry KaufmanInterview with author via PoliticoHenry Kaufman, nicknamed Dr. Doom during his 26 years at Salomon Brothers, has a new warning. In his latest book, ‘The Day the Markets Roared: How a 1982 Forecast Sparked a Global Bull Market,’ he argues the influence of central banks has increased to the point that it might present its own risk to the financial system.‘We’re moving to an environment, which I...

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US Q1 GDP Estimate Revised Up After Upbeat Economic Reports

The US economic outlook continues to improve for the upcoming first-quarter estimate of gross domestic product (GDP), based on a set of nowcasts. Compared with Q4’s solid increase, Q1 output is on track to show a substantially stronger gain in the scheduled Apr. 29 release from the Bureau of Economic Analysis. Economic activity in the first three months of 2021 is on track to expand by 6.5% (real annual rate), based on the median nowcast for several estimates compiled by...

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Macro Briefing: 16 April 2021

* China GDP surged in Q1 on year-over-year basis* Pfizer CEO: public will likely need third Covid shot within 12 months* Japanese prime minister will be first foreign leader to visit Biden’s White House* Biden bans US banks from buying, underwriting Russian debt sales* Stagflation is a growing economic threat, predicts economist Nouriel Roubini* Jobless claims in US fell to new pandemic low last week* Two regional Fed manufacturing surveys posted stronger growth in April* US...

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Capturing Average Returns With Asset Allocation, Part II

In a recent post I reviewed how asset allocation is a reliable tool for earning average to above-average returns (with average or below-average risk) for a given opportunity set. Let’s extend the concept with a real-world test of three more market slices: US fixed income, US equity sectors and US equity risk factors. First up is fixed income, based on this set of bond ETFs to proxy a wide sample of US fixed income. For the test period we’ll look at the trailing five-year...

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Macro Briefing: 15 April 2021

* US will impose new, deeper sanctions on Russia* Planned US troop pullout leaves Afghanistan with uncertain future* 100-plus companies sign letter opposing US state voting restrictions* Wall St banks report earnings growth and anticipate strong economic recovery* Hedge funds post best year-to-date results in over a decade* What happens when US economy’s stimulus high wears off?* Fed will reduce bond purchases ‘well before’ raising rates, says Powell* Fed Beige Book: US economic...

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