The Long Bull Run: Is It Too Late for Investors to Consider Stocks?

DAVID LAFFERTY, CFA® Senior Vice President and Chief Market Strategist Natixis Investment Managers — U.S. Distribution Global equity markets have now entered the ninth year of their rally off the March 2009 bottom. “How long can the equity rally last?” is the most frequent question we get from clients and advisors. In one recent meeting,…

Brexit Update: One Year After the UK Voted to Leave the EU

TRACEY E. FLAHERTY Senior Vice President, Government Relations and Retirement Strategy Natixis Investment Managers It’s been a year since voters in the United Kingdom surprised the world by voting to take their leave of the European Union. In March 2017, Prime Minister Theresa May invoked Article 50 of the Treaty of the European Union, marking…

What’s Ahead for Stocks and Bonds in Second Half of 2017?

What markets have room to grow? When might volatility reappear? How do bonds look relative to equities for the next six months? Where are the opportunities? Varying views on global markets are expressed by investment professionals from across Natixis Investment Managers in this midyear outlook. OUR PANEL RESPONSES DAVID G. HERRO CFA® Deputy Chairman, Portfolio…

Actively Combating Portfolio Volatility

Has the relative stability of market returns in recent years lulled clients into a false sense of security about passive investing? According to institutional investors and wholesale portfolio managers (i.e., those who manage portfolios for certain insurance investment platforms, fund-of-fund solutions and third-party asset management platforms), this could be a significant issue facing individuals when…

Preferred Shares Rally into Early April, But Finish the Month Slightly Lower

The Canadian preferred share market initially extended its rally into early April, but prices declined over the balance of the month to finish slightly lower than where they began. In part, the pullback later in the month could have been market fatigue as preferred share prices have risen almost continuously since mid-November. As well, some…

POTUS and Portfolios: The First 100 Days and Beyond

DAVID LAFFERTY, CFA® Senior Vice President and Chief Market Strategist Natixis Investment Managers — U.S. Distribution April 29 marked President Donald Trump’s 100th day in office. Since FDR, the first hundred days of a presidency have acquired near mythical status as a measuring stick, although it is to some degree a ridiculous standard. To be…

What Macron’s Victory Could Mean for International Equities

By: Josh Pritchard  Voters in France have elected former economic minister Emmanuel Macron of the nascent En Marche! party as president. Macron’s victory is likely to be seen as a rejection of the populist, anti-European Union sentiment that saw Brexit approved in the United Kingdom in 2016. The defeat of National Front candidate Marine Le…

Risk Budgeting

This video offers a fresh perspective on the function of risk in evaluating investments and constructing portfolios. From examining the relative long-term stability of risk as compared to that of returns, to establishing a risk budget, to identifying investments that can act as risk reducers or return enhancers, this video provides unique insights with practical…

Canadian Preferred Shares Continue Their Upward Pattern in March

Canadian preferred share prices continued to move upward in a seesaw pattern during March. An absence of new issues and occasional ETF flows were contributing factors behind the market strength. Interestingly, increased purchases of preferred share ETFs had a delayed reaction to underlying preferred share prices. As well, when ETF volumes declined, it led to…

Canadian Preferred Shares Continued to Move Upward in Price in February

Following their very strong gains in January, Canadian preferred shares continued to move upward in price in February, but at a more subdued pace. Reduced activity in preferred share Exchange Traded Funds (ETFs) probably accounted for the smaller preferred share gains. The Bank of Montreal Laddered Rate Reset ETF (ZPR) experienced a 45% drop in…

Advisor Atlas: Understanding Brexit

SUSAN R. OLSON Vice President of Government Relations Natixis Investment Managers — U.S. Distribution The June 2016 decision by voters in the United Kingdom to approve the country’s withdrawal from the European Union (EU) was one of last year’s biggest surprises. As the UK government undertakes the formal process of exiting the EU trading bloc,…

Trumponomics: Hope vs. Reality

DAVID LAFFERTY, CFA® Senior Vice President and Chief Market Strategist Natixis Investment Managers — U.S. Distribution Throughout most of 2015-16, we had been writing about central banks and the effects of their extremely accommodative policies. It seemed to be all that mattered for global markets. When would the Fed raise and by how much? Could…

Double Down: Faced With Increased Volatility, Institutions Embrace Risk

Faced with greater volatility and continued rate pressures, the 500 decision makers included in this, our fifth annual Global Survey of Institutional Investors, appear to be doubling down on their bets by increasing allocations to equities, private equities, and other high-risk assets seeking to generate returns. Institutional investors will have their hands full balancing three…

Preferred Shares Immune to the Volatility Arising From the Changeover in U.S. Administration

The Canadian preferred share market started 2017 with a bang, outperforming investment grade bonds, common stocks and even junk bonds by a significant margin. Unlike other securities, preferred shares were immune to the volatility arising from the changeover in the U.S. administration. In part, the strong performance of preferred shares reflected investors’ ongoing search for…

Canadian Preferred Share Market Moves Sharply Higher In December

The Canadian preferred share market moved sharply higher in December as large scale buying of preferred share Exchange Traded Funds (ETFs) pushed the prices of individual issues upward. A lack of new issues contributed to the market’s strength. As well, in contrast with recent years, there was relatively little tax-loss selling in December. Rate reset…

Advisor Atlas: Republicans and Trump in the New Administration

SUSAN R. OLSON Vice President of Government Relations Natixis Investment Managers — U.S. Distribution As President Trump and the Republican-controlled Congress take office, they bring the potential to generate dynamic change in many areas of the financial services industry and markets more broadly. These areas include business regulation, tax policy, and trade policy – each…

State of the Global Economy

By: David Lafferty, Gregory Hadjian, Philippe Waechter Global growth sputtered along at about 3% for 2016. After another year of disappointing economic expansion, could there be a catalyst in 2017? Are tax cut and infrastructure spending promises made by U.S. President Donald Trump enough to jump-start the global economy? Could stabilizing commodity prices propel emerging markets?…

Welcome to the White House: Unpacking Trumponomics

DAVID LAFFERTY, CFA® Senior Vice President and Chief Market Strategist Natixis Investment Managers — U.S. Distribution The electoral votes have been counted. Congress has certified. Cabinet members have been nominated and are being confirmed. The inaugural parade made its way to the White House. The Trump Train has arrived. Change is what happens over time,…

Seven Strategies for 2017

DAVID GOODSELL Executive Director of the Durable Portfolio Construction Research Center Natixis Investment Managers – U.S. Distribution How do you face up to the challenges? Our research into the markets, investors, and portfolios has uncovered seven unique strategies that if properly implemented could help to better position financial professionals to take on this new era with…