Thought Leadership Resource Center
Numerous rules and regulations govern the trading of securities on the public markets. One such example pertains to the settlement cycle for all trading activity. This cycle is a complex and critical component of financial markets, ensuring that trades are completed accurately and timely, thus maintaining market stability and investor confidence.
Read MoreFor centuries investors have invested in gold in pursuit of various purposes depending on individual financial goals and market conditions. Traditionally thought of as a safe-haven asset, owning gold on occasion has produced attractive returns. The price of gold has risen by about 13% in the first four months of 2024 and by over 80% in the past five years.
Read MoreIn Clearwater Capital Partner’s Outlook 2024, it was highlighted that most of the performance in the S&P 500 last year could be attributed to seven stocks (AMZN, AAPL, GOOGL, META, MSFT, NVDA, and TSLA). This trend of concentration has continued so far into 2024 as the 10 largest positions in the index make up 33% of the market’s value.
Read MoreClearwater Capital Partners has recently adopted a new fintech platform, Pontera, which offers a secure system specifically designed for financial advisors to oversee 401(k)s, 403(b)s, and other external retirement plan assets. Utilizing Pontera's platform, your advisor can assess fund options, establish fund allocations in accordance with the client’s investment strategies and adjust over time.
Read MoreLast month, Brazilian President Luiz Inácio Lula da Silva urged developing countries around the world to start using alternatives to the U.S. dollar in international trade and investing. In conjunction with that, Brazil and Argentina began to explore the possibility of a common currency, partially to circumvent the need for U.S. dollars in many cross-border transactions between the two countries.
Read MoreAn inverted yield curve has become a prominent indicator within the financial world that suggests a recession may be on the horizon. Currently, the yield curve is near the most inverted we have seen in over 40 years.
Read MoreAs rates have increased in 2022, short term fixed income yields are the highest they’ve been in nearly 15 years. The Federal Reserve has been aggressively tightening monetary policy to bring down inflation by increasing the Federal Funds Rate. The actions of the Fed and other central banks around the world have resulted in significant volatility in equities and in interest rates.
Read MoreMarkets can be volatile and while investment losses are never the goal, they can present opportunities for tax efficient portfolio management. Tax loss harvesting is simply the strategy where you sell investments with capital losses to offset realized capital gains. Consider the following example:
Read MoreOne of the most significant drivers of the poor performance of the stock market this year has been the dramatic rise in interest rates, which are moving higher in response to the Federal Reserve’s battle against inflation. As rates have moved higher in 2022, stocks have fallen. That relationship is based on the uncertainty around how high the Federal Reserve will need to take rates to get inflation under control, and whether they will be forced to raise rates to a level that will cause a recession. However, history tells us that stocks tend to bottom and begin the recovery rally well before inflation is “under control” and, typically, well before the Federal Reserve has finished raising interest rates. They also tend to bottom before the economy exits recession.
Read MoreTo say that 2022 has been a rocky year thus far would be quite an understatement. The selling pressure for both stocks and bonds has been historic and investor sentiment is at all-time lows. The good news is that prior periods of extreme stress have typically been followed by better than average returns in the year ahead.
Over the course of our Symposium season, our live presentations have attempted to make sense of this difficult time. Last week the final 2022 event was recorded and is available for replay below. This presentation provides an in-depth overview of our current perspectives and expectations for the balance of the year.
Please feel free to call us should you have any questions.
Investing during down markets takes focus and fortitude. Most investors understand the simplified concept of “buy low and sell high”, but human nature can create doubt and frustration when you don’t see the positive returns you’d like. When looking for investment opportunities during a down market, it’s important to not only look at what and when to buy, but also how. Here are several investment strategies to consider.
Read MoreMuch has happened over the last 16 months in the global economy and the capital markets. As is our practice, Clearwater Capital Partners (CCP) has proactively adjusted portfolio strategies along the way. While this activity is communicated to clients in real time, it may be difficult to maintain a broad perspective given the vast amount of activity. Accordingly, below is a high-level summary of CCP’s investment strategy adjustments beginning in 2021.
Read MoreThe volatility experienced in 2022 has some investors sitting on the edge of their seats. While the is S&P500 down 14% YTD, it may be even more alarming that we have seen already 2 major drawdowns of >10% in just the first 4 months. Anytime investors experience volatility like this, there is a natural urge to consider a strategy change. Should I go to cash? Should I re think my allocations? These are natural strategy questions because, as humans, we can’t help but combat the urge to “do something.”
Read MoreDid you know the Aggregate Bond Market (as measured by AGG) and the Dow Jones Industrial Average are both down almost 10% year-to-date 2022? If investors think stocks are volatile, they need to consider bond price action as certain segments of the bond market can be just as volatile as stocks when requisite conditions exist.
All too often bonds are viewed with a homogenous lens; however, bond markets are bigger and broader than equities and need to be approached with precision to identify opportunities for gains, but also avoid unnecessary losses during times of market stress.
Read MoreToo Conservative is Risky. Yes, you read that correctly – being too conservative can be risky.
Risk of what? Loss of value. Although volatility of financial securities is a reality, the loss of value is different. Ups-and-downs of security market prices happen, known as volatility, and is reflected mathematically as standard deviation. These statistics are helpful measures for evaluating relative risk-adjusted returns over time. However, the absolute risk of loss of value is when negative volatility (periods when prices are down) is made permanent.
Read MoreCommon sense tells us, “Don’t put all your eggs in one basket”, but times of uncertainty can tempt even the most experienced investors to join the flight for safety. Here’s why a well-diversified portfolio can be the key to survival during market volatility.
Read MoreThere are many factors that determine the strength of one currency versus another. The interest rate differentials between countries, the level of a country’s fiscal discipline compared to another, and the stability of one’s government, are just a few of the variables that influence the flow of global capital and subsequently, the strength and weakness of a currency.
Read MoreFrom time to time we like to share selections of unique third party content. This month, we share a video by our friend, Brian Wesbury, where he shares some helpful perspectives given our current economic backdrop.
Read MoreStagflation is the term used to describe an economy that has stagnate economic growth while having higher inflation and higher unemployment. Stagflation can be seemingly contradictory as stagnate economic output leads to higher unemployment, which normally should not lead to rising prices as economic demand falls. For the most part stagflation is rare, in fact we have not seen a stagflation type period for almost 50 years. We have to go back to the 1970’s to find a true stagflationary period.
Read MoreFintech is the abbreviation of “financial technology” and likely plays a bigger part in your current day-to-day life than you may even know. A company is said to be involved in fintech if it dedicates a significant portion of its operations to developing or offering products that are particularly innovative in the way our current financial system works. As such, these companies have the distinct opportunity to massively disrupt current financial operations and completely change the way these functions are conducted through their technology.
Read MoreDisclosures:
THIS COMMENTARY HAS BEEN PREPARED BY CLEARWATER CAPITAL PARTNERS. THE OPINIONS VOICED IN THIS MATERIAL ARE FOR GENERAL INFORMATION ONLY AND ARE NOT INTENDED TO PROVIDE OR BE CONSTRUED AS PROVIDING LEGAL, ACCOUNTING, OR SPECIFIC INVESTMENT ADVICE OR RECOMMENDATIONS FOR ANY INDIVIDUAL. ALL ECONOMIC DATA IS DERIVED FROM PUBLIC SOURCES BELIEVED TO BE RELIABLE. TO DETERMINE WHICH INVESTMENTS MAY BE APPROPRIATE FOR YOU, PLEASE CONSULT WITH US PRIOR TO INVESTING. INVESTING INVOLVES RISK WHICH MAY INCLUDE LOSS OF PRINCIPAL. This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities, insurance products, or to adopt any investment strategy. The opinions expressed are as of the date of writing and may change as subsequent conditions vary. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by Clearwater Capital Partners to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. Past performance is no guarantee of future results. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader. Investment involves risks. International investing involves additional risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. S&P 500 is a registered trademark of Standard & Poor’s Financial Services, a division of S&P Global (“S&P”) DOW JONES, DJ, DJIA and DOW JONES INDUSTRIAL AVERAGE are registered trademarks of Dow Jones Trademark Holdings (“Dow Jones”). The two main risks related to fixed-income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments.
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