VanEck is a global investment manager with offices around the world. To help you find content that is suitable for your investment needs, please select your country and investor type.
Trends with Benefits is a podcast by VanEck with a forward-looking perspective. Host Ed Lopez interviews a guest each week to discover new ways of thinking about the markets, investing, work and life.
Stay current on VanEck’s latest news, press releases and important company information.
Find current notifications such as shareholder announcements and results of the shareholder meetings.
Find all relevant documents regarding VanEck’s ETNs such as KIDs, Prospectuses and Final Terms.
Find general legal policies and procedures of VanEck such as the Remuneration Policy or Complaints Procedure.
Through forward-looking, intelligently designed active and ETF solutions, we offer value-added exposures to emerging industries, asset classes and markets as well as differentiated approaches to traditional strategies.
VanEck's investment teams offer active and passive strategies with compelling exposures supported by well-designed investment processes. The firm's capabilities range from core investment opportunities to more specialized exposures to enhance portfolio diversificaiton.
Search the latest job roles and career opportunities at VanEck. Apply today to join our growing European team.
Find the VanEck contact details for all European countries. If you have questions about our range of ETFs and mutual funds, please let us know.
Trends with Benefits is a podcast by VanEck with a forward-looking perspective. The podcast explores new ways of thinking about the markets, investing, work and life.
Apple Podcasts |
Google Play |
How do you think about wealth? Ask yourself that question and consider whether your portfolio is aligned with your answer. In our second episode of Trends with Benefits, I catch up with Steve Blumenthal, Executive Chairman and Chief Investment Officer of CMG Capital Management, at the 2020 Inside ETFs conference and ask him the same question. Our discussion touched on the state of current markets, the “mother of all debt bubbles” and the implications for investor portfolios in the years to come.
What stood out to me from our discussion is that old rules of thumb about lifecycle portfolio construction have to be rethought. In normal markets, the basic approach is to bias your portfolio to stocks when you are young. Then, as you get older and closer to retirement, you start to shift your portfolio to bonds. Bonds tend to be less volatile than stocks and generally, will give you a better chance protecting the value of the money you’ve accumulated. Plus, the inclusion of bonds is typically intended to provide income during retirement. But, these are not be normal times.
The yield on the 10 year Treasury fell below 1.0% this month and inflation last clocked in at 2.5%.1 A long-term to so-called “risk-free” U.S. bonds is simply eating away future purchasing power. Worse, however, is the risk of rising interest rates. As rates rise, bond prices fall and vice versa. For every percentage point that interest rates rise, U.S. 10-year Treasuries could see price declines of roughly 8%.2 While we don’t seem to be in any danger of seeing interest rates rise in the near future, income investors are in a tough spot. This dynamic has driven many investors into other corners of the bond market, like high yield and emerging market bonds, and into dividend-oriented equity strategies.
Beyond the typical prescription of asset class diversification for risk management, diversification may also come in the form of types of strategies employed. Steve discusses his use of tactical strategies as one form of risk management. The benefit of such strategies is to allow you to take emotion out of decision making and by using well defined rules, help identify sell and buy opportunities.
Virus fears are dominating financial media currently, but if we get beyond this, there’s still a massive debt bubble to contend with, and according to Steve, there’s an “epic opportunity” around the corner for investors who have defended their wealth.
Listen for Steve’s take on fake meat, ESG, digital currency, and the sharing economy.
1Source: FactSet as of 6 March 2020.
2Duration measures the sensitivity of bond prices to interest rate changes. It is influenced by a bond’s maturity and coupon rate. The higher the duration, the more a bond’s price will be negatively impacted if interest rates rise. Generally, for every point interest rates rise, a bond will fall in price by the amount of its duration.
For informational and advertising purposes only.
This information originates from VanEck (Europe) GmbH which has been appointed as distributor of VanEck products in Europe by the Management Company VanEck Asset Management B.V., incorporated under Dutch law and registered with the Dutch Authority for the Financial Markets (AFM). VanEck (Europe) GmbH with registered address at Kreuznacher Str. 30, 60486 Frankfurt, Germany, is a financial services provider regulated by the Federal Financial Supervisory Authority in Germany (BaFin). The information is intended only to provide general and preliminary information to investors and shall not be construed as investment, legal or tax advice. VanEck (Europe) GmbH and its associated and affiliated companies (together “VanEck”) assume no liability with regards to any investment, divestment or retention decision taken by the investor on the basis of this information. The views and opinions expressed are those of the author(s) but not necessarily those of VanEck. Opinions are current as of the publication date and are subject to change with market conditions. Certain statements contained herein may constitute projections, forecasts and other forward looking statements, which do not reflect actual results. Information provided by third party sources are believed to be reliable and have not been independently verified for accuracy or completeness and cannot be guaranteed. All indices mentioned are measures of common market sectors and performance. It is not possible to invest directly in an index.
All performance information is historical and is no guarantee of future results. Investing is subject to risk, including the possible loss of principal. You must read the Prospectus and KIID before investing.
No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission of VanEck.
© VanEck (Europe) GmbH