LaRue Gibson’s Post

Zero of five Ivy Portfolio ETFs are signaling "cash," but what does it mean for your portfolios? Learn how #FinancialAdvisors are navigating recent market gains while managing risk in Jennifer Nash's latest video. 📊 Plus, find her companion article in the comments below. Meb Faber / S&P Dow Jones Indices #FinancialStrategy #MarketInsights #FinancialAdvising

In their "2024 Long-Term Capital Market Assumptions – Q1 Update", Invesco US Institutional makes several key points, including "Concentration risk is one that occurs in many individual regional equity markets and rarely causes systemic issues for markets globally. However, it has led to significant sell-offs, like during the early 2000s in the US. Given the size of the US market currently, concentration in a handful of equities like the “Magnificent 7” poses risks for global multi-asset investors as drawdowns can occur even without a specific catalyst." Click here to download the full update: https://ow.ly/iZeA50RbjVJ

Understanding the Risks of Leveraged ETFs: A Caution for Investors As market volatility continues to challenge us, it’s essential to approach leveraged ETFs with both understanding and caution. These products, designed to achieve 200% or 300%—or their inverse—of their benchmark's daily performance, are tempting tools for their potential high returns. However, it's crucial to remember they are structured to meet their leverage targets daily. Holding these instruments for longer than a day can result in performance that diverges significantly from 2x or 3x the benchmark's return due to compounding effects. Moreover, the liquidity and market conditions at the start and end of trading sessions can significantly impact these ETFs. Holding leveraged ETFs overnight introduces risks that might not align with every investor’s strategy. While they can be powerful tools for intraday trading, they require a careful strategy and a clear understanding of the risks involved. Consider your risk tolerance and consult with a financial advisor to ensure these investments fit your broader financial goals. #ETFs #LeveragedETFs #InvestmentRisks #FinancialLiteracy #ETFTrading #CapitalMarkets #ETFCapitalMarketAdvisorsLLC

In their "2024 Long-Term Capital Market Assumptions – Q1 Update", Invesco US Institutional makes several key points, including "Concentration risk is one that occurs in many individual regional equity markets and rarely causes systemic issues for markets globally. However, it has led to significant sell-offs, like during the early 2000s in the US. Given the size of the US market currently, concentration in a handful of equities like the “Magnificent 7” poses risks for global multi-asset investors as drawdowns can occur even without a specific catalyst." Click here to download the full update: https://ow.ly/iZeA50RbjVJ

Post-pandemic markets have been a rollercoaster but with the S&P 500 rebounding and money market fund-to-money supply ratios at levels seen in March 2020 hints at a competitive race for asset managers to win AUM.  💼 The latest Asset Management Pulse (link in the comments) looks at the 2020-2023 recovery, showing how even as the Nasdaq-100 and S&P 500 soared, money market ratios show that there’s still investor caution. 🔎 As history shows, the assets ready to be invested may be more of a stream than a sea, emphasizing the importance of being proactive in an environment where everyone is waiting for assets to come off the sideline.

ETFs, or Exchange-Traded Funds, offer several advantages for investors: 1. Diversification: ETFs spread risk by holding a mix of securities. 2. Liquidity: ETF shares can be bought and sold on stock exchanges throughout the trading day. 3. Low Costs: ETFs typically have lower expense ratios than mutual funds. 4. Transparency: ETFs disclose their holdings regularly, providing clarity for investors. 5. Tax Efficiency: ETFs often result in fewer capital gains distributions compared to mutual funds. 6. Flexibility: ETFs can be used for various investment strategies and goals.

If you want to know more about Stock Market basics - Why do share prices move? - How do Exchange Traded Funds (ETF) work? - Will the FTSE100 go negative? - Can I buy the FTSE100 index? - What are the FTSE100 indicators? - How many shares can I buy? - How do I invest in the London Stock Exchange? - Where do I find share prices? - How does the stock market work? - Where to trade shares? click to read more https://lnkd.in/gPW-2bzm #london_stone_investments #stockmarket #investmentopportunities #investmentportfolio

Underperformance in Equity? You are not alone, many institutional investors struggle to keep up with the benchmarks. For those who consider closing their underweight to Mag 7 or go passive in US Equities, take a look at the table below. We've just had several periods in which the S&P 500 outperformed the S&P Equal Weight index (EW) a lot! Historically after such a period, the EW portfolio outperforms the S&P 500 with large numbers (see next 3 and 5 years in table). There are alternatives here is one: https://bit.ly/3Xe4c1J

Check out RBC's Global Insight for the week: "Nagging questions facing equity markets" "We believe there are enough lingering risk factors associated with this selloff to prompt a review of equity portfolio positioning....Within equity portfolios, we would tilt exposure defensively, with an emphasis on high-quality dividend-paying shares." https://lnkd.in/gxB7Hpv3

With more than $1 billion flowing into 100% Buffer ETFs™ year-to-date¹, investors have been readying their portfolios for the uncertainty surrounding the end of 2024. Today Innovator is expanding its industry leading suite of 100% Buffer ETFs™ with the launch of #ZSEP. ZSEP provides a timely strategy for investors to put sidelined cash to work, pursue tax alpha, and get exposure to the upside of U.S. Equities with built-in 100% downside protection over a 1-year outcome period.     Learn more about why investors are flocking to 100% Buffer ETFs™:   ➡ https://lnkd.in/g2tJfGke   Give us a call!   📞 https://lnkd.in/e_69rnmp   #Investing #Cboelisted #ETF 1. Source: Bloomberg, as of 8/23/24.