We Could Use Some Inflation

The Treasury said this week that it will borrow (and spend) about $3 trillion this quarter, to cover its stimulus promises. Where does that money come from and where does it go? 'The capital is going from one pocket to another,' explains Vanguard's active Treasury fund manager, who expects the stimulus to be withdrawn in 2022.

The Short and the Long of the Fed Buying Corporate Bonds

'The Fed’s aggressive actions have benefited the markets in the short term. Longer term, however, we think there will be downgrades, defaults, and bankruptcies, particularly among companies that came into the downturn with high leverage,' writes the head of fixed income at the asset manager William Blair.

Public pensions are not a drag: Study

Economic growth attributable to public pensions generated approximately $341.4 billion in state and local revenues. Adjusting this figure for taxpayer contribution $162 billion yields pensions’ net positive impact of $179.4 billion, says NCPERS, which advocates for public pensions.

What it means when ETFs deviate from NAVs: Cerulli

'Advisors purchasing a mutual fund as a long-term holding may be overpaying and would be better served in an ETF. Investors who do not need intra-day liquidity but may need to sell at a specific date may well be best served by the mutual fund,' writes a Cerulli analyst.


April 30, 2020

Look Homeward, Seeker of Liquidity

During a market crisis, a reverse mortgage home equity line of credit (ReLOC) can be a lifeline of ready cash for homeowners ages 62 and older. Don Graves of HECM Advisors Group explains.
April 23, 2020

Portfolio Rebound: How Long Should It Take?

Using his proprietary 'aftcasting' technique instead of Monte Carlo simulations, the author shows how long it will probably take different portfolios to recover after a negative market shock.
April 16, 2020

The CARES Act Isn’t Careful Enough

If this agonizing period leads to genuine reform, our 'blood, sweat and tears' (to borrow Winston Churchill’s famous words) won't have been in vain, writes our contributor.