Of Special Interest ...examining a significantly timely topic

We tackle the challenge of appraising an investment that doesn’t produce income or cash flow by weighing the price of gold against other familiar investments and concepts that can be quantified—like home prices and inflation.

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A small-cap bounce in January is arguably the best-known of all stock market anomalies, but for much of the last decade it’s been a flop. This year, it was back in full force... until it faded. Despite giving back some of its sizzle in late January, the Russell 2000 ended the month with a 4% advantage over the S&P 500—its best January since 2023.

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Investment management requires making decisions between alternatives, and the goal of fundamental analysis is to compare “what you pay” with “what you get.” We evaluated factors using metrics like valuation, profitability, and growth to lay out a menu of tradeoffs in the factor world heading into 2026.

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We examine several baskets of equities focused on distinctively speculative, high-risk market segments. Such traits are apt to be qualities investors try to avoid—but when animal spirits are running high, they can generate prodigious returns during short but powerful speculative outbursts.

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Halloween’s eerie vibe came early for investors in regional banks, as there were several reports of large and disturbing credit issues on October 16th—a frightful day that drove the group to a cumulative 14.3% shortfall versus the S&P 500.

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While the U.S. is the center of attention for global investors, Chinese stocks have quietly outperformed. At first glance, it might be tempting to give credit to the surge in Chinese Tech names. In reality, the upswing is much broader and began long before the Alibaba rally.

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The Magnificent 7 constitutes 34% of the S&P 500 and comprises seven of the eight largest companies in the index. We explore a few of the disguises the market has been wearing during this mega-cap growth era, looking behind the mask at the broad swath of equities hidden by the Mag 7’s dazzling veil.

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These days, the rate of inflation is a much-discussed topic, as it hovers near the threshold that would allow the Fed to begin cutting interest rates. The CPI’s latest reading of 2.9% is down significantly from pandemic levels, but not quite low enough to claim victory in achieving the Fed’s 2% target.

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Those who follow an investment approach embracing thematic groups, sectors, or industries will enjoy superior results if they construct a universe using narrower baskets. Our GSS process assigns stocks into well over 100 themes, offering the advantages of wider opportunity sets and greater diversification.

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Developed due to the growing interest in private debt and equity, these vehicles offer a degree of liquidity and transparency within a regulated, standardized fund format. While fees and expenses are lofty versus OEFs and ETFs, interval funds’ relatively high current income may be very appealing to some.

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Today’s disproportionate outflow from gold miners even as physical gold continues to attract new money, is the proverbial “canary in the mine” that serves as a warning of looming trouble. When the miners are bleeding assets, investors may wish to take precautions against the impending risk of lower gold prices.

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A synopsis of ten historical bubbles, with price charts detailing the scope and duration of each, beginning prior to the onset of the hysteria through the aftermath of the bursting of the bubble. At the end of these cycles, the asset typically returns to the base trend in place before the insanity took hold. These quick anecdotes may be of particular interest to those whose tenure as professional investors has not yet reached the quarter-century mark.

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It was 25 years ago this month when the legendary dot-com mania reached its crescendo, entering market lore as one of the greatest bubbles in history. This silver anniversary prompted us to create a month-long series of articles under the banner of “Manias, Bubbles, Panics, And Crashes.” Here we look back at the sheer scale and intensity of the internet craze.

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Broad investor interest has validated the attractiveness of buffer and covered call funds. An important part of understanding these ETFs is having a solid grasp of the upside participation that is sold away. The last two years provided a perfect environment to empirically measure the give-up associated with selling calls.

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The turning of the calendar is a time to reflect on the past year’s returns and analyze the relative performance of various asset classes. For 2024, no matter what equity theme is under the microscope, the yearly recap is bound to point to the very same explanation—Nvidia and mega-cap tech.

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One of the benefits of exchange traded funds is the ability for investors to access complicated or non-traditional strategies in a simple easy-to-trade wrapper. We recently reviewed covered call funds and buffer funds, two option-based positions that are now available through ETFs. This month, we examine another multifaceted security that has recently become easier to obtain thanks to new ETF launches.

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With the closely intertwined businesses of semiconductors and semiconductor equipment, it is not surprising that the two industries have historically performed similarly. Yet, in 2024, a colossal disconnect has emerged, with semi-equipment stocks up a paltry 5%, miles behind the booming semiconductors.

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Small caps turned sour in August 2018, and since then, performance has been nothing less than disastrous. Is the enormous shortfall pervasive across small caps in general, or is it due to a top-heavy market with unusually huge returns from a few huge stocks? The answer may be helpful for those contemplating a contrarian position in this unloved corner of the market.

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With renewed worries about the stock market, investors are pursuing safe-haven ideas—and Quality is a long-time favorite. Yet, despite its defensive appeal, the Quality factor has been a prominent bull-market leader, of late. Are the striking returns of Quality due to outsize exposure to the Mag 7—or have other high-quality stocks been equally fruitful in the latest upswing?  

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With multiple rate cuts nearly assured through year-end, investors can profit from the iron-clad link between changing rates and bond fund prices. But there are two circumstances that introduce complexity: 1) the yield curve will likely un-invert during this process, and the longest duration funds may therefore not experience the strongest price response; 2) potential changes in credit spreads may either enhance or diminish the duration effect felt by corporate bonds.

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