Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
Blog Home

  Alternatives Update 2nd Quarter 2017
Posted Under: Alternatives

The capital markets continually offer up uncertainty and confusion. A "Chekov's gun" mindset to market analysis will likely result in terabytes of data mining, great mental anguish, but perhaps little else. Rarely do any markets follow the careful sequencing of a well-crafted spy novel or a tightly written screenplay. In fact, it might be said that the incoherent jumbled mess of a Michael Bay directed movie is logical and cohesive by comparison. As a tangent, the current administration and both political parties seem to be giving Michael Bay a serious run for his money. Fortunately for investors, the markets appear to be ignoring both domestic and global political dysfunction. Despite all the noise, a couple of clear themes emerged in the second quarter: For risk assets, any news was good news, and there has been a shift in messaging from the Federal Open Market Committee (FOMC).

Second quarter returns for traditional assets were strong across the board with global equity markets continuing to dominate (see Figure 1). Carrying on the theme that has been in place since the start of quantitative easing, equity or credit of most varieties proved to be rewarding. Despite the FOMC raising rates and signaling more to come, long dated treasuries rallied strongly, outpacing the S&P 500. Two of the more popular explanations for the flattening are: The bond market is telling the FOMC that they should not be raising rates at this juncture and the talk of several more rate moves and balance sheet unwinding is just that, talk.

Click here to continue reading.

Posted on Thursday, July 20, 2017 @ 8:59 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
Dave McGarel
CIO, COO | Bio
  1. Market Minute
Bill Housey
Senior Portfolio Manager | Bio
  1. Income Insights
Ryan Issakainen
ETF Strategist | Bio
  1. ETF Data Watch
  2. ETF Observations
  3. Inside First Trust ETFs
  4. First Trust ROI Podcast
Jeff Margolin
Closed-End Fund Analyst | Bio
  1. Closed-End Fund Quarterly Commentary
Client Resource Kits
  1. Alternatives
  2. Equity
  3. Fixed-Income
  4. Markets In Perspective
  5. Investment Themes
Other Newsletters
  1. Alternatives Update
  2. Housing Tracker
  3. Commercial Real Estate Tracker
  4. Equity Newsletter
  5. Weekly Market Commentary
  6. Weekly Market Watch
Subscribe To Receive Email

The Value of Dividend Growth
First Quarter 2017 CEF Review
Alternatives Update 1st Quarter 2017
Diversifying Alpha with Strategy ETFs
Fourth Quarter 2016 CEF Review
Alternatives Update 4th Quarter 2016
Money Market Reform and the Opportunity for Enhanced Cash ETFs
Third Quarter 2016 CEF Review
Alternatives Update 3rd Quarter 2016
Broad Commodity ETFs Gain Traction in Q2: Will the Trend Continue?
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.