As we build up resilience to handle the major events and swings in the market, we experienced the Fed’s extensive stabilizing efforts this week to fixed income liquidity and the Congressional approval of the CARES Act that will provide temporary fiscal support for American companies, business owners and consumers.
Advisors are continuing to engage their clients to help communicate a number of these efforts and prepare for the road to recovery. While we’re hearing much of the sentiment is focused on opportunity, there remains uncertainly for many who are approaching or in the midst of their decumulation stage.
We were poised this week to release several alerts around the fixed income markets and we will continue to provide as we see risk and opportunities within the mutual fund and ETF universe.
Let’s commence the Week in Review –
Fed announces purchase program that will provide support for Fixed Income ETFs
We welcomed the emergency liquidity relief from the Federal Reserve to bolster the trading activity in the fixed income markets. While we anticipate that the Fed will be proactive, the maze becomes more complex for creating solutions for the investor community. Our team released some of our timely research to help advisors with investment selection.
As we’ve become accustomed to potential fund closings, the drawdown environment creates greater prevalence and we highlighted here several situations and where better alternatives can be found.
This is an exceptional time to consider reviewing ETF alternatives fro client scenarios where are potential capital gain/loss opportunities for clients. We’re available to share our work to help uncover potential opportunities that reduce cost and find greater efficiency through available capital.
We still have a limited number of investor spots available to our invitation-only Breakpoint Alerts | Forecasts, our risk and regime forecasting that reflects stocks, FX, crypto and ETF movements, to help the active investors stay on top of these rapid market changes and foster investment decisions.
Please let us know if you are interested.
Alternative resources for your COVID-19 Resource Center
We plan to add new resources each week that we have reviewed which exhibit the environmental and economic impact to the U.S. and global systems.
- COVID-19 — Economic Impact – data visualization of various impact areas within the US economy.
- How the Virus Got Out– Excellent NY Times article on how the virus spread despite extraordinary containment efforts
- Crisis Has No Economic Precedent – A commentary from a renown global economist on why this pandemic is different from history.
- COVID-19 and Global Growth: How Low Can It Go – a blog post from a geopolitical strategist on significant the impact on global growth.
- 7 Best COVID-19 Resources – Data visualizations on the spread of the virus from a global perspective.
Our advisor community continues to work at gathering better information to assist with their research process and narrative efforts for this unprecedented period so we always welcome your suggestions.
Here are the posts most read on Portformer.com:
- Tactical Alert – Fed will Buy Bond ETFs
- Tactical Alert – Adjusting to ETF-ETN Fund Closures
- Coronavirus Twitter Influencer Analysis
Question of the Week:
What type of information are you communicating to your clients other than financial or market-related ?
Please share with us via our chatbox at Portformer or reply to this email and the information will remain confidential.
What we’re Reading:
Here is a snapshot of the best articles compiled and read by our team:
Analyzing the CARES Act -From rebate checks to small business relief – A detailed review from Michael Kitces on all aspects the relief bill.
Serving a Larger Client Base through Wealthtech – Access to a podcast recorded prior to the outbreak that discusses providing better and more personalized advice to investors.
Why Many Bond ETFs Now Trading a Discount – a commentary from one of the best known ETF traders in the industry on fixed income dislocation.
Places that a COVID-19 Recession Could Hit the Hardest – Washington think tank article on those metro areas that could be impacted the most from a recession.
Shelter in Credit – A research article from GMO on the risks in today’s high yield markets.
The Critical Importance of Anticipatory Intelligence in a Complex, Uncertain World – A commentary from a risk strategist on the importance of intelligence to evaluate global risk events.
If you have any difficulty accessing these articles and papers, please reach us through our website or directly at firstname.lastname@example.org.
These are complex and challenging times and it’s critical to remain closer to your community.
Sean Kruzel and the Portformer™ Team