There s Value in Staying the Course etftrends.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from etftrends.com Daily Mail and Mail on Sunday newspapers.
Inflation s Potential Big Flip
For several decades, investors have relied upon the negative correlations between equities and sovereign bonds to provide a hedge against inflation – almost as if the contrary relationship between the two instruments were an immutable aspect of market behavior. Historically speaking however, the correlation between stocks and sovereign bonds has been primarily a positive one, turning negative a little more than 20 years ago.
That the negative correlation is an anomaly over the long term doesn’t really matter, according to
Philip Seager, Head of Quantitative Investment Solutions, at Capital Fund Management (CFM). What does matter, he says, is that investors “may be unaware it could change and are not prepared for that possibility.”
The VanEck Vectors
® Real Asset Allocation ETF (“RAAX”) returned +2.29% versus -2.15% for the Bloomberg Commodity Index. March was another strong month for RAAX. The largest contributors to performance, from largest to smallest, were income assets with a return of +5.66%, financial assets with a return of +2.72% and resource assets, with a return of +0.48%.
President Joe Biden recently announced an ambitious $2.3 trillion spending plan to upgrade the nation’s bridges, roads, schools and more. This level of investment is going to require a lot of natural resources to complete. This combined with the unprecedented monetary support from the U.S. Federal Reserve (Fed) and the other aggressive fiscal support programs, is creating strong inflationary pressures. In our view, this leads to a very nice outlook for real assets and, more specifically, RAAX.
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HSBC Introduces First Multi-Asset Index Powered by AI and Big Data
HSBC today announced the launch of the AI Powered Multi Asset Index (AiMAX) family, the first rules-based multi-asset investment strategy to use artificial intelligence (AI) as a method for constructing a diversified growth portfolio.
The introduction of AiMAX follows HSBC’s launch of AiPEX, the world’s first AI-powered stock index family using IBM Watson
TM. Since going live on August 9, 2019, the AiPEX Total Return Index (AIPEXTR) has outperformed the S&P 500 Total Return Index by 4.79 percentage points.
AiMAX was developed in collaboration with EquBot, the first asset manager to develop an AI-based ETF, and utilizes [url= ]IBM+Watson+Discovery[/url] to retrieve and analyze millions of data points, from both traditional sources such as financial statements and non-traditional sources such as social media posts.
The Social Sentiment Factor | Tactical Allocation Channel etftrends.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from etftrends.com Daily Mail and Mail on Sunday newspapers.