The Fed potentially winding down fiscal stimulus raises the question of whether current interest rates are sustainable. But investors have been concerned whether interest rates were too low for more than a decade. Seven years ago, in response to continued concern over the viability of investing in bonds, I made a case that rates in the US did not have to go up given the existin ...

The proper implementation of asset allocation, and the correct application of its processes has been a concern for investment practitioners since the founding of modern portfolio theory by Harry Markowitz in 1952. As part of New Frontier’s legacy of investment research in daily practice, Dr. Richard Michaud will deliver a series of presentations on “Rethinking Asset Allocation” ...

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With recent remarks by SEC chair Gary Gensler asserting the position that the U.S. will seek more regulatory authority over the burgeoning digital currency space, we at New Frontier thought it important to review for advisors our reasoning for why Bitcoin and other cryptocurrencies do not meet New Frontier’s criteria for inclusion in risk-managed accounts.  Since inception of ...

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With U.S. consumer prices reaching a 13-year high this quarter, inflation has once again become a prominent theme for economists, and a daily reality for consumers. To share an anecdote on the potential transitory nature of inflation, one of the surprises on returning to the office post-pandemic was the price of my favorite sandwich—it had risen by nearly 50% in less than 18 m ...

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Key Takeaways • Stock markets rose to another record high during the second quarter, as did New Frontier ETF portfolios. Return ranged from 2.2% to 6.7% across portfolios. • Aggressive profiles posted the highest absolute returns while conservative and balanced profiles delivered the best benchmark-relative performance. • Highly diversified risk exposure contributed to outpe ...

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Once again skeptics are challenging the notion that the 60/40 portfolio still works. Some fundamental misunderstandings around what constitutes an optimized approach to comprehensive portfolio management continue to fuel the negative narrative. With very low interest rates raising doubt about the fixed income component of 60/40, riskier alternatives are touted as a solution to ...

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Interest rates affect your portfolio through all asset classes, but may do so in different ways. Investors have been on edge about rising interest rates lately, but sensitivity to interest rates has long been a concern of serious investors (along with all other aspects of portfolio risk), regardless of current news cycles.  Duration is the standard statistic used to describe t ...

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Thoughtful long-term investors often invest in fixed stock/bond ratio asset allocations such as a 60/40 portfolio. Fixed target risk portfolios, typical of many sophisticated institutions, are often considered most reliable for meeting long-term investment objectives. Given recent news, some advisors and clients have been concerned about the possibility of rising interest rates ...

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By Joy Zheng

The new year rang in good news on multiple fronts. A greater-than-expected fiscal stimulus and faster-than-anticipated vaccine rollout pushed U.S. stocks higher during the first quarter of 2021. The New Frontier Global Equity Index (NFGEI) 100/0 returned 6% for the quarter, 0.8% higher than ACWI IMI index. The New Frontier U.S. Equity Index (NFDEI) 100/0 was up 7%, outperformin ...

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By Joy Zheng

Global markets found themselves in tumult in 2020, and many investors struggled to keep pace with rapid dislocations in economic conditions and risk sentiment. Where others may have floundered, New Frontier succeeded – with both our optimized method of building diversified portfolios across the range of risk tolerance profiles, and our statistical rebalance test that signals wh ...

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