Perspectives on industry challenges and opportunities affecting you and your clients.
The Knowledge Center is your source for perspectives on industry challenges and opportunities affecting you and your clients. Below are materials from SEI's Investment Management Unit. For industry-specific thought leadership, please visit the following sections:
Investors Emboldened in OctoberNov102015Article
The fourth quarter began favorably; economic conditions were mixed in October, but major central banks remained accommodative. The combination appears to have emboldened investors, whose return to equity markets erased much of the third quarter’s losses.
Volatility Heightens: Third Quarter 2015 Market CommentaryOct62015Article
The third quarter was marked by heightened volatility and a spate of interventions by the Chinese government. Fixed-income market performance was mixed, with wide performance dispersion between “safe-haven” and risk assets.
China Sneezed. Will the Rest of the World Catch a Cold?Sep252015Article
Turmoil is revealing a mixed outlook for global growth pockets of strength and weakness in emerging markets.
Commodity-producing economies and those with close ties to China are struggling.
Collateral Damage to Commodities; China's Effect in AugustSep42015Article
Global equity markets performed poorly in August as concerns about the broad impact of China's selloff spread.
Reaping the Whirlwind: Second Quarter Economic OutlookJul22015Article
In our current environment, we expect the global economy to gain traction, which should provide a tailwind to equity markets, even in those countries further along in their business cycles and facing rising interest-rates.
Major Central Banks Hold Their Bearings: April Monthly Market CommentaryMay62015Article
Major central banks held their bearings amid tight elections in the U.K., debt-crisis brinksmanship in the eurozone, weak first-quarter economic growth in the U.S., and disinflation in Japan. Equity and fixed-income markets generally performed well as risk assets benefitted from favourable conditions.
Share Buybacks: A Good Use of Capital?May52015Article
A share buyback is a return of capital to investors and occurs when a company purchases its own shares. Buybacks among U.S. corporations are currently at historically high levels, providing support to equities.
Investment Fundamentals: DeflationApr152015Article
Inflation measures the overall change in prices of goods and services over a set period—and deflation is the term used when these prices fall over time.
Behavioral Finance: Confirmation Bias, Cognitive Dissonance, and RecencyApr142015Article
In this segment of our Behavioral Finance series, we will examine confirmation bias, cognitive dissonance and recency, additional behaviors that may lead us to make investment mistakes.
February 2015 CommentaryMar62015Article
A strong dollar should not spell the end of the multi-year bull market in U.S. equities.
Crude Surprise: A Dramatic Drop in Oil Prices Makes Investors NervousFeb162015Article
Investment Fundamentals: DiversificationFeb112015Article
They say variety is the spice of life. But when it comes to investing, variety can be a key to long-term success. But just what does diversification mean? And why might it be beneficial?
Mixed Fixed-Income Performance: January 2015 Monthly Market CommentaryFeb52015Article
Central bank policies remained divergent in early 2015, as low inflation and slow labour-market gains were further complicated by different stages of economic recovery. Fixed-income market performance was mostly positive, led by U.S. dollar-denominated debt; local-currency debt was marginally negative. Global equity markets declined; the healthcare sector performed best, while energy remained the worst performer.
Slow But Mostly Positive Growth: SEI Annual Market CommentaryJan232015Article
To start 2014, continued expansion in advanced economies created optimism, while emerging economies sorted through political, financial and social reforms. Overall world growth, however, remained less than robust.
Economic Outlook: Staying Optimistic - Despite All the Good NewsJan82015Article
Amidst slow but mostly positive economic growth, an historic decline in oil prices, near-zero interest rates and the ardent pursuit of unconventional monetary policies by the world’s most important central banks, it is tempting to be clever and assume that the bull market is in jeopardy: If everyone is bullish who’s left to buy?
Investment Fundamentals: CurrencyDec32014Article
The latest in our Investment Fundamentals series. This edition covers how currency promotes economic activity and affects purchasing power.
Investment Fundamentals: Standard Deviation (Volatility)Nov112014Article
Standard deviation, also referred to as volatility, measures the variation from average performance. Within the context of a diverse portfolio, allocations to riskier assets can make sense even for conservative investors, as these allocations can actually reduce a portfolio’s overall volatility.
Behavioral Finance: The Three A's - Availability, Anchoring, and AdjustmentOct272014Article
In our last paper, we explored the biases inherent to heuristics. Now we explore availability, anchoring, and adjustment - shortcuts that are rooted in investor's inclination to project their current frame of reference on situations that are not applicable.
Behavioral Finance: Loss and Regret AversionOct272014Article
According to Prospect Theory, investors tend to qualify gains and losses through the lens of various heuristics (rules of thumb), thus limiting their ability to make reasonable decisions. Loss aversion and regret aversion can drive investors to make inferior decisions through passive behavior.
Risk Parity: The ConceptSep32013Article
Investors are typically counselled to diversify capital across asset classes in an effort to reduce risk. In light of this, it could be something of a surprise to learn just how concentrated a traditionally diversified portfolio may be in terms of its sources of risk.
Investment Fundamentals: Bond Market MathsAug72013Article
In recent years, global central banks have kept interest rates low in an effort to support the struggling global economy. Since hitting multi-generational lows, interest rates (and bond yields) have spiked significantly higher.