Insight is Capital™ Podcast

Join us as we catch up with Som Seif, Founder and CEO of Purpose Investments. In this episode of Insight is Capital, Som shares his perspectives on the current volatile market environment, discussing trends in stocks, bonds, and interest rates. With a focus on sustainable investment solutions and economic productivity driven by AI, Som shares his views of market expectations, the role of the Fed, and the importance of preparing for multiple economic scenarios, considering the range of possibilities of 'higher for longer' monetary policy. Som shares his thoughts on the need to establish a mental model for advisors to consider while navigating today's uncertainty and to consider ways of building resilient portfolios for today’s more challenging and changing financial landscape.Timestamped Highlights00:00 Introduction01:15 Market Overview and Current Trends02:56 Bond Market Overview06:03 Economic Assumptions and the futility of predictions11:47 Comparing Consumer Resilience and Housing Market29:43 A Mental Model for Investment Strategies and Portfolio Management34:38 Advisors' Role and Resources41:19 Closing Thoughts and Best Advice Ever ReceivedCopyright © AdvisorAnalyst

Join us on the Insight is Capital Podcast as we interview Joel Litman, Chief Investment Strategist at Valens Research, discussing insights into the current equity, bond markets, and the challenges in commercial real estate. Discover the strong investment potential of the U.S. amidst global shifts, encouraging a disciplined, long-term investment strategy. We then get into a discussion of the limitations of GAAP accounting and the benefits of Uniform Adjusted Financial Reporting Standards (UAFRS). It’s earnings season, after all. Explore how understanding true business earnings and improved transparency can lead to better investment decisions, and outcomes. Dive into the nuances of corporate management claims, financial forensics, and market analysis, including Jerome Powell's statements on inflation, the pitfalls of EBITDA, and the past example of IBM’s flawed compensation strategy.Timestamped Highlights00:00 Understanding Earnings Comparisons00:11 The Impact of Inventory Methods on Profit Reporting00:53 Challenges with GAAP Accounting01:31 Historical Perspectives on Accounting Standards03:39 Introduction to Uniform Accounting Principles03:44 The Role of Shelby Davis in Accounting04:29 The Importance of Consistent Accounting Standards06:42 Market Insights and Economic Trends07:54 The State of the Bond Market31:19 Private Equity and Credit Markets47:18 Understanding Sustainable Earnings48:16 The Flaws of Wall Street Ratings50:37 Uniform Accounting and Fraud Detection53:00 Case Studies and Real-World Applications55:04 Challenges in Financial Analysis01:01:22 The Role of Audio Analysis in Detecting Deception01:07:20 Teaching Uniform Accounting01:14:08 The IBM Case Study01:18:30 Advice for Financial Analysts and Investors01:20:40 Global Economic Outlook and U.S. Dominance

In this episode of Insight is Capital, Pierre Daillie, Managing Editor at AdvisorAnalyst.com catches up with Steve Hawkins, CEO of Longpoint ETFs. After a notable career leading Horizons ETFs (now Global X ETFs Canada) and a brief retirement travelling the world, Hawkins discusses his market outlook, his return to the investment industry with his new venture focused on building innovative ETF products. We dive into his experiences, strategic vision, as well as his take on the evolving landscape of the ETF market, touching on the importance of listening to investor needs and the distinct opportunities he plans to bring to both retail advisors and self-directed investors. The conversation wraps up with Hawkins' insights into the future of ETFs and his excitement for upcoming launches at Longpoint.Timestamped Highlights00:00 Introduction and Welcome00:41 Steve Hawkins' Retirement Adventures01:44 Return to the Industry03:33 Building Longpoint ETFs06:46 Innovations and Future Plans11:00 Market Review, Challenges and Opportunities13:32 Global ETF Market Insights18:51 Partnerships and Strategies36:09 Personal Reflections and Travel Highlights41:20 Wrap up and Future OutlookCopyright © AdvisorAnalyst

In this episode of 'Insight is Capital', host Pierre Daillie sits down with Daniel Straus, Director and Head of National Bank Financials' ETF Research and Strategy Group, to discuss trends in the ETF market both in Canada and the U.S. They explore recent market conditions, the dynamics between U.S. and international equities, the role of AI and technology stocks, and the state of the bond market. Daniel also delves into investor behavior, the emergence of alternative investment strategies, and the implications of recent regulatory changes on ETFs. This comprehensive discussion provides extraordinary and valuable insights into the opportunities and challenges that shape today's ETF landscape.Timestamped Highlights00:00 Introduction and Guest Welcome01:31 Market Overview and Recent Trends04:32 Economic Indicators and Household Spending07:15 Investor Sentiment and ETF Flows11:50 Bond Market Dynamics and Strategies18:11 Trends in the ETF Market24:22 Investor Behavior and Tactical Decisions33:51 Exploring ETF Strategies for Recovery34:18 Tax Implications and Strategies34:35 Diversification in ETFs36:02 Market Cap Weighting and Passive Investing38:03 Tax Alpha and Risk Management39:50 Investor Behavior and Cognitive Biases41:26 Trends in International Markets42:46 The Rise of Thematic ETFs43:54 Crypto ETFs and Market Dynamics49:07 Alternative Assets and Leveraged ETFs58:54 Commodities and Inflation Protection01:02:13 Conclusion and Future InsightsCopyright © AdvisorAnalyst.com

In this episode of the Insight is Capital podcast, Ilan Kolet, an Institutional Portfolio Manager in Fidelity's Global Asset Allocation team, discusses the current investment landscape, focusing on the divergence between the Canadian and U.S. economies, the significance of productivity growth, and the strategic inclusion of liquid alternatives in investment portfolios. Kolet highlights the U.S. economy's remarkable growth compared to other G7 countries and emphasizes the potential of a productivity expansion in the U.S. to enhance economic growth without stoking inflation. The conversation also covers Fidelity's decision to incorporate liquid alternative strategies into their managed portfolio suite, aiming to improve diversification and risk-adjusted returns for investors. This move reflects a deliberate and research-based approach to portfolio construction, underscoring Fidelity's commitment to innovation while maintaining a cautious and incremental investment strategy.Timestamped Highlights00:00 Catching Up After a Long Time00:30 Divergence Between Canada and the U.S.04:50 The Importance of Productivity07:47 Stocks and Bonds Performance10:12 Understanding Productivity Growth16:39 Implications for Monetary Policy20:14 Introduction and Episode Overview21:04 Current Market Positioning26:56 Incremental Investment Approach27:06 Valuation and Sentiment in Investment Decisions28:14 Comprehensive Global Asset Allocation Strategy29:17 Manager Selection and Diversification29:56 Rigorous Evaluation and Tactical Decisions30:58 Challenges for Advisors35:57 Balanced Fund of the Future36:30 Inclusion of Liquid Alternatives40:44 Democratizing Access to Alternative Investments53:52 Strategic and Methodical Investment Decisions55:04 Concluding Thoughts and Future Plans

Bob Elliott, former Bridgewater exec and CEO of Unlimited Funds, discusses democratizing access to alternative investments through low-cost index replications using machine learning. He emphasizes the importance of fee transparency, expert technology development, and returns analysis. The podcast covers challenging hedge fund misconceptions, optimizing portfolios, and the future of accessible investing.

In this episode Brooke Thackray, research analyst at Global X ETFs Canada, and advisor to the Global X Seasonal Rotation ETF (HAC), joins us to discuss seasonal investing trends across US and Canadian stocks and bonds. Thackray emphasizes the effectiveness of seasonality in fine-tuning the investment process with technicals and historical market patterns – just take a quick look at the chart for the ETF – confirmed. We also discuss the rotation aspect of the fund, the expectation, for example, of gold performing well in a strong upcoming seasonal period, and the anticipation of a weaker equity market over the next six months due to various factors. Thackray highlights the importance of relying on a long-term model and discipline for managing the investment process, and expects the seasonal framework to work even better over the next decade due to changes in market sectors.Thank you for listening!Timestamped Highlights00:00 Market signals mixed, economy struggles with inflation.06:15 Economy has a rich-poor divide, different news.14:23 Seasonal trends and market performance post-COVID.16:04 Investors' shifting interest from trends to analysis.22:57 Global X Seasonal Rotation ETF chart impressive.32:10 Discussing the challenge of simplifying stock strategy.35:21 Adhere to rules. E.g. gold sector showing strength.38:32 Tech sector's strong performance suggests market caution.44:32 Economy slowing, technicals show bond strength. Yield rising or remaining high.50:35 Stock market trend uncertain, potential opportunities ahead.55:34 Investing in mystery and history, a seasonal strategy.01:00:15 Market behavior varies with seasonal elements.01:05:04 Improving processes for future market changes.Copyright © AdvisorAnalyst

In this conversation Jeff Weniger, Head of Equity Strategy and Samuel Rines, Macro Strategists, Model Portfolios at WisdomTree Asset Management, join us to discuss various topics including the performance of the equity and bond markets, inflation, the labor market, and the real estate market. We explore the potential impact of rising yields on equities, the relationship between bonds and stocks, and the role of the US dollar as a hedge. We get into  the challenges of navigating the current economic landscape and the reluctance of individuals and businesses to make changes in their financial strategies. Jeff and Sam unpack the impact of job mobility and housing on asset allocation. Jeff Weniger discusses the challenges of job relocation and the limitations it imposes on housing choices. He also highlights the rigidity of mortgage rates and the potential financial burden it creates for homeowners. Sam Rines adds that the lack of labor market dynamism and the preference for home remodeling contribute to the stagnation of the housing market. Then we shift to the changing dynamics of the US economy, with a focus on the transition from goods to services. Sam Rines emphasizes the normalization of the services sector and the potential lasting effect on the labor market. Our focus turns to a discussion about asset allocation and the push for domestic equity ownership in various countries. We explore the seismic shift in investment trends, with a focus on the changing dynamics of global markets. We dive into the history of investing in the early 2000s in emerging markets like Brazil, Russia, India, and China (BRIC), and how the focus has now shifted to investing in Japan, Korea and other markets where policy driving home bias is flourishing. We look at the role of China in the commodities market, particularly its insatiable appetite for base metals and gold. If anything, our entire conversation highlights the importance of diversifying portfolios and considering alternative asset classes like managed futures and commodities. They also touch on the impact of US-China relations and the potential risks and opportunities in the market.TakeawaysThe equity market has performed well despite the backup in yields, indicating resilience in the face of potential headwinds.Bonds may provide a diversifying effect in a 60-40 portfolio, and there is an indication that bonds and equities may move in opposite directions this year.There is a misconception about inflation, with people often misunderstanding the difference between the rate of inflation growth and inflation levels.The labor market has been confounding, with indicators sometimes differing from what is happening on the ground.There is friction and inertia when it comes to individuals and businesses making changes to their financial strategies, such as moving cash to higher-yielding investments.The real estate market is slow-moving, and the effects of macro factors, such as the actions of the Fed, take time to materialize.The current economic landscape presents challenges, but there is a sense of managed control and a slower pace of change compared to previous cycles. Job mobility and housing choices can significantly impact asset allocation decisions.Rigid mortgage rates can create financial burdens for homeowners, limiting their job mobility.The lack of labor market dynamism and the preference for home remodeling contribute to the stagnation of the housing market.The transition from goods to services in the US economy is normalizing, potentially impacting the labor market.There is concern about a push for domestic equity ownership in various countries, which may affect asset allocation strategies, and US equity performance.Japan and Korea, and other countries (Canada) are at the centre of this push that is further bullish for them, and less so for the US where country allocations are concerned.China's insatiable appetite for commodities, particularly base metals and gold, has significant implications for the market.Diversification and considering alternative asset classes like managed futures and commodities are crucial for portfolio management.US-China relations continue to be a significant factor impacting the market, with potential risks and opportunities.Chapters00:00 Discussion about CTAs, market thresholds, portfolio diversification, and bond-equity relationship.09:10 Labor market indicators are confounding due to COVID's impact on surveys - may not align with actual conditions. Sub-questions reveal differing responses.15:38 Recent market issues addressed with intervention, BTFD easing bank assets.17:10 Surprise at bank walk concept, advises money markets over savings accounts.23:37 Macro moves slowly, taking 18 months to 2 years for major shifts. Real estate in the US takes longer to impact than expected.29:48 Post-financial crisis house underwater issue slowed recovery, COVID impact on job mobility and quits.34:29 Higher mortgage rates, bond market volatility, and housing market concerns persist.42:38 Encouraging stock purchases through pension plans globally, with a focus on Japan and UK.46:32 Concerns raised about potential totalitarian push for domestic equities by institutions with significant capital. Nationalistic push may impact relative performance of US equities.53:44 Text suggests possibility of rising prices, impact on retail, potential for gold strength, and higher inflation and bear market probabilities. Cautions against putting all money in equities and bonds.56:26 Gold's relationship to interest rates and the influence of a strong dollar on its value.01:01:11 Under-the-radar aggregate companies outperformed in 2021.01:08:23 Optimistic about US economy, pessimistic about US-China relations.01:11:48 Many people don't plan for social security, but they should.Copyright © AdvisorAnalyst

Dennis Mitchell, CEO, CIO at Starlight Capital joins us this episode to discuss various topics including the impact of interest rates, the potential for rate cuts, portfolio construction for the period ahead - which will be marked by the persistent threat of inflation and higher rates for longer, the importance of proper pension-like diversification, and the rising risks of geopolitical instability, and authoritarianism, and ensuing political risk ahead. He expresses optimism about the long-term trends in private real estate, infrastructure, and equity markets. He also highlights the need for education and due diligence in investing in these asset classes. However, he expresses concern about the rise of authoritarianism and the erosion of democracy, which could have negative consequences for global markets and standards of living. We explore the current investment climate and the need for a shift in portfolio construction. Dennis Mitchell emphasizes the importance of considering and adding private assets and alternative asset classes with the objective of building resilient portfolios. Mitchell highlights the need for a diversified approach that goes beyond traditional 60-40 portfolios. We discuss the benefits of adding private equity, private real estate, infrastructure, commodities, and private credit. He emphasizes the critical need for enhanced financial education and the role of financial institutions in providing innovative investment solutions. We also get into the misconceptions about private assets and the importance of understanding the risks and returns associated with different asset classes.TakeawaysInvestors should consider diversifying their portfolios with private real estate, infrastructure, and equity assets to replicate the strategies of large pension plans.The Canadian market has recently opened up to alternative and real asset investments, providing more options for investors.Investors need to understand the benefits of diversification and the importance of long-term returns.Geopolitical risks, such as conflicts in the Middle East and Russia-Ukraine tensions, can undermine political stability and impact global markets.The rise of authoritarianism poses a threat to democracy, free markets, and innovation.The world has become smaller and more dangerous, with the potential for catastrophic consequences if leaders abdicate their roles or fail to address emerging challenges.The investment climate is influenced by geopolitical events and economic cycles, which create opportunities to allocate capital to different sectors and geographies.Traditional 60-40 portfolios are outdated, and investors should consider allocating more to alternative asset classes.Private assets, such as private equity, private real estate, infrastructure, commodities, and private credit, offer opportunities for long-term returns and diversification.Financial education is crucial for investors to understand different asset classes and make informed investment decisions.Financial institutions have a responsibility to provide innovative investment solutions and be accurate stewards of the economy.ChaptersIntroduction and SettingThe Impact of Interest Rates and Rate CutsThe Canadian Market and InflationThe Importance of Diversification and Investing in Private AssetsThe Risks of Authoritarianism and Erosion of DemocracyThe Impact of Politics and Populism on Global MarketsThe Danger of Geopolitical Conflicts and AuthoritarianismThe World's Smaller and More Dangerous NatureThe Current Investment ClimateThe Decline of Traditional 60-40 PortfoliosThe Role of Financial Education and InstitutionsWhere to find Dennis Mitchell & Starlight CapitalDennis Mitchell on LinkedinStarlight CapitalStarlight Capital's Thought Leadership

In this episode with SIACharts' President, Paul Kornfeld, we kick off our conversation with the recent changes in the Federal Reserve's rate cut projections and the performance of various stocks. We question whether it's a good time to 'buy the dip or sell the rip.' We get into the use of SIA charts in analyzing market trends and making investment decisions. What are the benefits of using a systematic approach and relative strength analysis? We touch on the challenges and opportunities of 24/7 trading, and the pressure that's mounting for moneycenter banks. We dive into the importance of having a rules-based approach and risk management in investing. We discuss the opportunities and risks in the market, and in particular the generational opportunity in the energy and materials sectors. Wending our way through the conversation, Paul peels back the layers on the importance of diversification and the need to consider the opportunity cost of investing in certain sectors. There's also the potential impact of various serious geopolitical events on international markets to weigh and the importance of incorporating risk management strategies, now. What has been the historical performance of different sectors and how great is the potential for a shift in market dynamics. What is the market indicating are trends to follow in specific sectors? What is the potential impact of inflation on portfolios and how great is the need to consider alternative asset classes?<h3>Takeaways</h3><ul> <li>The Federal Reserve's rate cut projections have been revised, leading to uncertainty in the market.</li> <li>Using SIA charts and a systematic approach can help investors analyze market trends and make informed investment decisions.</li> <li>24/7 trading presents both opportunities and challenges for investors, and risk management is crucial in navigating the market.</li> <li>Money center banks are facing pressure due to rising interest rates, and it's important to monitor their performance.</li> <li>Having a rules-based approach and discipline in investing can help mitigate emotional biases and improve investment outcomes.</li> <li>There are opportunities for profitability in sectors like energy and materials</li> <li>Diversification is important to mitigate risk and take advantage of different market opportunities.</li> <li>Consider the opportunity cost of investing in certain sectors and evaluate the potential for higher profitability in other areas.</li> <li>Geopolitical events can have a significant impact on international markets, and it's important to monitor and adjust investment strategies accordingly.</li> <li>Incorporating risk management strategies is crucial to protect portfolios during market fluctuations.</li> <li>The historical performance of different sectors can provide insights into potential future trends and opportunities in the market. Diversification and following trends in specific sectors can provide opportunities in the current market environment.</li> <li>Inflation is expected to remain sticky, and portfolios need to consider alternative asset classes to fill the void left by bonds.</li> <li>SIACharts is a tool that simplifies research and provides actionable insights for advisors.</li></ul>