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Key Takeaways • Against the backdrop of rising inflation and a new variant of coronavirus, global equity markets proved remarkably resilient, ending the year strongly with double-digit returns. • New Frontier’s entire suite of ETF portfolios delivered positive returns in Q4, adding to the strong annual performance. • Consistent with major trends for the year, U.S. large-cap ...

Many have been concerned about recent heightened volatility in US markets. Indeed, the CBOE Volatility Index (VIX) attained a high of 38.94 on Monday, January 24, 2022, a level not seen since October of 2020, and US indices had extreme intra-day movement on several days during the same week. Some of this volatility may be driven by anticipation of rising interest rates, but int ...

Key Takeaways U.S. markets remain strong year-to-date as stock markets hit record highs more than 50 times this year before losing momentum in early September amid growing uncertainty over economic growth. U.S. equities returns within the portfolios were relatively muted this quarter with gains from large cap stocks partially balancing out losses from small caps. Developed ...

Due to the fluctuating nature of the economy, present market conditions can prompt investors to wait for a better time to invest, theorizing that waiting until after an economic downturn – whether a recession, government shutdown, or pandemic – will ensure greater return on investment. In reality, waiting for a favorable market scenario leaves investors at a disadvantage compar ...

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” ...

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 ...

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 ...

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 ...

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 ...