Asset Preservation Advisors’ Post

While APA looked to extend duration across strategies for much of 2023, with ratios on the rich side of historical averages to start the year, and the fixed-income markets being well ahead of Fed messaging for rate cut expectations for much of the start of 2024, we remained more selective on duration extension trades to start the year. Read our report: https://lnkd.in/dGtiM_DX #AssetPreservationAdvisors #MunicipalBonds #MarketInsights #WealthPreservation #InvestmentStrategies #MarketCommentary #FinancialExcellence

M2 Money Supply vs. Federal Funds Rate    Financial markets anticipate future developments, with price movements primarily influenced by investor expectations. Technical analysis, using financial charts, enables traders to identify these expectations and take advantage of emerging trends.     Understanding the relationship between M2 and the Fed Funds Rate can help traders predict future interest rate movements. For instance, a rapid increase in M2 might suggest potential rate hikes. 📈 #MoneySupply #FED #FTDcharts #Investment #FTD #OnlineTrading #FinancialTradingDimensions #PrimePartner

🤔 Amidst the highest consumer inflation expectations in 30 years, how are you hedging against potential inflationary pressures? 📉 Sit down with Rusty Vanneman, CMT, CFA, BFA™, CIO – Wealth Management, as he shares his musings for this week's #marketupdate. ⚡️ Want an easy way to share #markettrends with your clients? Get our investor-ready, white label-ready version when you subscribe to our Weekly Wire newsletter: https://bit.ly/3svsVmY

The first half of the year was a challenging environment for a lot of fixed income markets, especially higher-quality markets. With the Federal Reserve (Fed) seemingly unlikely to lower interest rates until after the summer months (at the earliest), the “higher for longer” narrative has kept a lid on any sort of bond market rally. Continue reading for more insight: https://lnkd.in/dMCwyxg5 #FinancialAdvisor #NewportBeach

In this week's #WeeklyMarketCommentary: It continues to be a challenging environment for a lot of fixed income markets, especially higher quality markets. With the Federal Reserve (Fed) seemingly unlikely to lower interest rates until after the summer months (at the earliest), the “higher for longer” narrative has kept a lid on any sort of bond market rally. And while falling interest rates help provide price appreciation in this higher-for-longer environment, fixed income investors are likely better served by focusing on income opportunities. https://hubs.la/Q02w-g2C0

The calendar year 2023 was a more 'normal' year for asset class returns. Higher risk asset classes (such as equities) produced the highest returns, while the returns from fixed income and cash were lower. Property was the main exception with a negative return for the year. Do you believe in mean-reversion? Can you predict future returns? Investigate the historical returns further here. https://lnkd.in/gj6hn-Jv

LOADS OF USDs ON THE RISK ASSET SIDELINES? If policy rates are lowered 150-200bps, 1.5-2trn USDs are likely to leave money market funds for assets further out the risk curve That is why Powells pivot matters a lot! More -> https://lnkd.in/dCFRPUMK

Navigating monetary policy crosscurrents: What’s the rush?   Check out the latest insights from the BWE Capital markets team!   #BWE #capitalmarkets #weeklydigest   bwe.com/capitalmarkets

History shows that when the Fed is paused and easing, longer duration higher quality #fixedincome has outperformed riskier assets, as well as money market instruments. In this environment, we continue to favor exposure to higher quality, high carry instruments. Structured credit has generally offered less mark-to-market volatility than similarly rated corporate credit, with higher investable yields. Read our 1Q24 Fixed-Income Sector Views for more about where we are identifying investment opportunities. https://gugg.gp/3uyMOux

While cash has been a beneficial allocation for lower-risk assets in recent years, with the Fed now openly communicating about the timing for potential rate cuts, this dynamic may soon change. In our most recent Bond iQ, Brandon Zureick, CFA and Landon Peterson suggest that investors holding excess cash in portfolios should consider moving into short duration fixed income and demonstrate the value it can add over time.  Read our latest Bond iQ: https://lnkd.in/evmRTEJt