Integrating High Yield Bonds into a Fixed Income Portfolio
Introduction into a Diversified Fixed Income Portfolio Hemispheres Investment Management offers a Core-Plus Bond Strategy. The “Core” portion of the portfolio consists of a highly diversified portfolio such as found in the Bloomberg Aggregate Bond Index. The “Plus” component of the portfolio represents strategic allocations that Hemispheres views as offering compelling potential investment returns. When […]
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Investing Based on Interest Rate Movements
Introduction to Interest Rate Movements Interest rates are one of the most important factors affecting the economy and the outlook for asset class performance. When interest rates rise, borrowing costs increase, which can reduce consumer spending and business investment, leading to lower economic growth. Conversely, when interest rates fall, borrowing costs decrease, which can stimulate consumer […]
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Key Insights on Sector Comparison
Introduction Given the recent market correction, many analysts have discussed the possibility of a recession. This concern is leading to a reevaluation of sector weightings in portfolios. Hemispheres Investment Management (HIM) is a Global Investment Manager. The firm’s flagship product is Global Equities. HIM manages portfolios utilizing both a value and a quality approach. The […]
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Correction vs Bear Market
Introduction Global stock markets during the week 7/29/2024 – 8/2/2024 experienced heightened volatility and a decline in index values. Returns for the week and year-to-date for the US markets appear in the table below. Index Weekly Return YTD Return DJIA -2.1% 5.4% Nasdaq -3.4% 11.8% S&P 500 -2.1% 12.1% Russell 2000 -6.7% 4.1% The CBOE […]
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Sector Rotation Strategies
Understanding Sector Rotation Sector rotation involves dynamic allocation of investments to diverse sectors (or industries) of the economy. The goal of sector rotation is to benefit from market and economic trends. The sectors include Technology, Communication Services, Materials, Consumer Staples, Consumer Discretionary, Industrials, Energy, Utilities, Health Care, Financials, Transportation, Real Estate, etc. Historically certain sectors […]
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Investing in Commodities
What are Commodities? Commodities are classified as alternative investments because they are fundamentally distinct from stocks, bonds and cash. Each commodity generally has its own price driver. Investors can buy the physical commodity or invest in securities, which we will discuss below. Common investable commodities include oil, natural gas, gold, silver and other metals, agriculture […]
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Renewable Energy Investment Opportunities in Global Equities
Introduction On 12/12, 196 countries at the UN Climate Change Conference (COP21) in Paris, France entered a legally binding international treaty on climate change. The treaty is a landmark agreement that binds all nations together to combat climate change. To achieve the target of limiting global warming to 1.5°C per year, the Agreement sets ambitious […]
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Fixed Income Investing Basics
Fixed Income securities are debt instruments that pay a fixed amount of interest, called a coupon payment, to investors.Fixed Income securities provide an investor with stable and predictable cash flow. Bonds lower portfolio risk through diversification.
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Capitalizing on Opportunities Amid Market Divergence
Introduction The primary thesis behind active investment management is that the manager can identify market divergence and opportunistically allocate capital between asset classes to earn higher returns and mitigate risk. For a manager of both Global Equities and Global Fixed Income products, market divergence among countries, sectors and asset classes provides compelling opportunities for investors. […]
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How Demographic Shifts are Shaping Global Investment Opportunities
Introduction The world’s major economies are currently experiencing the most rapid demographic shift since World War II. This demographic shift has the potential to reshape the macro and investment landscape for decades to come. Since the nineteenth century, the demographic trends in major economies have witnessed lower mortality and fertility rates. These trends pose challenges […]
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