A Decade in Review - The Effects of Climate Change

Posted by Dana Funds Investment Team on Dec 11, 2019 12:50:07 PM

As part of a 3-part blog series covering the most memorable changes from the 2010s, our 2nd post covers the effects of climate change. If you are interested in reading the first part in this Decade in Review series, Central Banks Take the Wheel, please see link below.

Climate Change

In mid-November the city of Venice, Italy experienced its worst flood in over fifty years.  Fueled by rising ocean waters, drudged canals and 75 mile-per-hour winds, the brackish waters of Laguna Veneta rose six feet above normal levels, flooding over 80% of the city.  The flood waters caused an estimated $1.1 billion in damages.  Included in that estimate is considerable damage done to St. Mark’s Cathedral whose crypt flooded for the first time since 1966.

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A Decade in Review - Central Banks Take the Wheel

Posted by Dana Funds Investment Team on Dec 5, 2019 9:27:00 AM

As we approach a new decade, we’d like to take a moment to reflect on some of the most memorable changes from the 2010s. In a 3-part blog series, we will cover central banks, how mobile has changed our world, and the effects of climate change.

Central Banks

Perhaps the biggest change in the financial markets over the past ten years is the evolution of the Federal Reserve from a somewhat autonomous, esoteric monetary policy making body to an almost ubiquitous actor in monetary, economic and political policy. In 2010 Federal Reserve Chairman Ben Bernanke was an anonymous figure, known by few outside financial circles. Today, Chairman Jerome Powell is mentioned weekly in tweets by the President.

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Is Value Investing Back in Vogue?

Posted by Dana Funds Investment Team on Nov 15, 2019 4:35:15 PM

An interesting dichotomy has developed between the collective psychology of investors and market performance.  In a hint of growing uncertainty, investors’ cash allocations have grown $1 trillion over the last three years to levels unseen since 2009. (See chart 1 below). Given the current environment, investor trepidation is understandable.  The U.S. remains in an on-again, off-again trade war with China, economic growth has been lackluster as stagnating manufacturing data continues to wrestle with decent services growth, and impeachment hearings have brought to a boil the nation’s political animus.  Yet, despite the uncertainty, markets averages have soldiered on to new highs.

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How Heightened Cash Levels Could Prolong the Equities Bull Market

Posted by Dana Funds Investment Team on Sep 26, 2019 9:08:28 AM

Asset flows into money market funds have accelerated considerably since the selloff in late 2018, as illustrated by the graph below. According to the Investment Company Institute, more commonly known as ICI, total money market assets (including institutional and retail funds) currently stand at $3.4 trillion as of 9/18/19, which is the most recent available date.1

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Is there a Bubble in Passive Investments?

Posted by Dana Funds Investment Team on Sep 19, 2019 3:46:56 PM

Michael Burry, whose firm Scion Asset Management made approximately 489% betting against the housing bubble during the Global Financial Crisis, recently made headlines again. This time, he is of the opinion that another bubble exists today, and passive investment vehicles are to blame.

“The bubble in passive investing through ETFs and index funds, as well as the trend to very large size among asset managers, has orphaned smaller value-type securities globally,” said Mr. Burry.1

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2 Wrong Ways to Invest in ESG and SRI

Posted by Dana Funds Investment Team on Sep 13, 2019 9:12:57 AM

As demand for environmental, social and governance (ESG) and socially responsible investing (SRI) investment products grows, advisors are tasked with sorting out the good options from the bad. Unfortunately, there are many problematic products, many of which have been “greenwashed” or marketed in a way that makes the fund appear more ethical or responsible than it really is, which could result in tough conversations with clients.

Here are two approaches you should be careful with:

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Advisors Year-End Checklist – Are You Prepared?

Posted by Dana Funds Investment Team on Sep 5, 2019 6:19:53 PM

Can you believe Labor Day is behind us? With the end of the year approaching, here is a checklist of items to keep in mind when speaking with your clients this fall:

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The Business Roundtable’s New Standard for Corporate Responsibility

Posted by David Weinstein, Portfolio Manager on Aug 29, 2019 1:33:18 PM

On Monday, August 19, 2019, the Business Roundtable, a group of chief executive officers from nearly 200 U.S. corporations, issued a statement1 proposing a new definition of the purpose of a corporation. This new vision included heightened corporate responsibilities toward employees, customers, suppliers, communities and the environment, rather than strictly looking to maximize profits and shareholder monetary value. The statement was signed by 181 CEOs including the heads of Apple, JPMorgan Chase and Amazon.

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The Value of a Disciplined Long-Term Approach

Posted by Dana Funds Investment Team on Aug 21, 2019 4:32:49 PM

Throughout this economic cycle, there have been countless events that had the potential to, and often did, send the U.S. equity markets lower. But even the effects of major developments like the downgrading of U.S. debt, Taper Tantrum, or the European Sovereign Debt Crisis — each of which had the potential to cause broader contagion — ultimately proved transitory.

The chart below illustrates the power of a long-term approach and sticking to a disciplined investment strategy.

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[Chart of the Month] The Market is Roughly Flat Over Past 12 Months

Posted by Dana Funds Investment Team on Aug 15, 2019 2:11:42 PM

What a ride it’s been. It’s hard to believe that after the fourth quarter’s selloff, the first quarter’s rebound and the recent spike in volatility, the S&P 500 is back to the mid-$2,900 level it was at nearly a year ago.

Small cap stocks, however, are a different story. While TV anchors had been opining on large caps hitting all-time highs, it was easy to overlook the fact that small caps (Russell 2000 Index) never got close to reclaiming levels reached in August of last year.

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