APTUSCAPITAL ADVISORS
Talk to us
About
Our People Philosophy
Solutions
Managed Portfolios Option Overlays Active ETFs Box Spread Loans Trading & Operations
Shared CIO Support Perspectives News & Media Investment Hub Talk to us
Perspectives

The Aptus Blog

Market notes, charts, investment concepts, and timely market updates, directly from our investment team.

2021-06-02 · Market UpdatesRenting vs. OwningFear of Missing Out This market is a FOMO generating machine. From our vantage point, there is more delusion around returns and disregard for risk than we ever thought po2021-05-28 · Market UpdatesSnap Ya Fingers! Do Ya Step! You Can Lose It All by Yo’ Self!Going into this year, a theme for our clients was that “the path of least resistance is up, but we could encounter some type of volatility”. This is exactly what we have 2021-05-26 · Market UpdatesThe Allure of Direct Indexing for ClientsThe concept of Direct Indexing is pretty much as it sounds. Instead of accessing an index through an ETF or a mutual fund – you directly own the underlying securities. Th2021-05-20 · Market UpdatesQ1 Earnings RecapAs of May 14th, 91% of the S&P 500 have reported earnings (440 companies). The first quarter of 2021 saw S&P 500 earnings at $48.21, besting Wall Street expectati2021-05-14 · Market UpdatesIt’s Hard Out Here for a Bond InvestorThe Q1 Scorecard Source: Bloomberg (As of 3/31/21) TLT = iShares 20+ Year Treasury Bond ETF ($12bn AUM); AGG = iShares Core U.S. Aggregate Bond ETF ($87bn AUM); LQD = iSh2021-05-04 · Market UpdatesTeam Over PlayersAptus has six team members that are former collegiate basketball players and two that went on to play professionally. That is almost 50% of our roster. This shared backgr2021-05-04 · Market UpdatesThe Proposed Tax Policy ChangesWho is John Galt? President Biden won the electoral college by 74 votes, but he won the “swing states” by only just 65K votes. So, even though it may not look like it on 2021-05-03 · Market UpdatesInflation vs. Deflation: Tug of War of the Decade“Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in outpu2021-05-03 · Market UpdatesRearview to Windshield, May 2021Developments over the Past Month: Thus far, 2021 has continued the inflation theme in the market. Value continues to outpace growth, small caps have performed well, and b2021-04-16 · Market UpdatesQ1 2021 Recap and Chart BookJust a few things had investor attention in Q1, among them… The inauguration of President Biden A blowout earnings season The emergence of meme stocks and our introductio2021-04-06 · Market UpdatesPart 2: The (Low Quality) FinaleIn the essence of continuing our inner George Costanza of doing the complete opposite of what normal nomenclature says, we are giving you Part 2 of this series alongside 2021-04-06 · Market UpdatesRearview to Windshield, April 2021Looking Back: One year ago, the WHO declared COVID-19 a pandemic and the equity market troughed. The S&P 500 has subsequently soared by 75% during the past 12 months.2021-04-06 · Market UpdatesThe Relative Opportunity SetAbsolute valuations matter, if the history of markets is any guide. They can be a solid indicator for future returns. High valuations today lead to lower returns moving f2021-03-18 · Market UpdatesThe Market Needs to Yada Yada Yada on Low Quality $tonksFor those not familiar with the greatest TV show ever, George Costanza was the unlovable loser from the iconic ‘90’s sitcom “Seinfeld”. Ignorant, callow and a notoriously2021-03-08 · Bonds & RatesInflation Protection…Are TIPS the Answer?One question we’ve gotten a lot recently is how can investors position portfolios if we see some inflationary pressure… are Treasury Inflation-Protected Securities (TIPS)2021-03-02 · Market UpdatesFebruary Review + March PreviewMarket Action in February: Despite plenty of fireworks in a handful of somewhat wonky assets, major asset classes were up slightly in February, with small caps leading th2021-03-02 · Market UpdatesThe Impact of Rising RatesRates Are Moving Interest rates – just look at what the yield (the interest rate) of 10-year government bonds has done recently. The arrow is pointing to the start of 2022021-02-24 · Bonds & RatesMuni to Treasury Ratio at Historic LevelsAs advisors often see, high-income investors love municipal bonds. And for the most part we’ve shared that love. Tax-favored income and low correlation to equities, what’2021-02-18 · Bonds & RatesConvertible Bonds: Feed the DucksConvertible Bonds experienced an incredible 2020 and start to 2021. The Bloomberg Convertible Index outperformed both the S&P 500 and Nasdaq indices in 2020. We can’t2021-02-01 · Market UpdatesMaking Volatility Your Portfolio AllyThe lifeblood of financial services is the $500k to $3 mil family nearing or in retirement that will need to tap assets at some point. They need two things: Sufficient gr2021-01-29 · Market UpdatesBack to School, Back to School to Prove to Investors That Jerome Powell Isn’t a FoolDisclosure: Yes; I understand that these types of articles aren’t the most fun to read (nor write), but we’ll try to make this as easy as possible Last year, about this t2021-01-27 · Market UpdatesGreg Odens EverywherePaying a $39 million salary to LeBron is reasonable. He’s going to bring the team tremendous value. He’ll stuff the stat sheet and fill the stands. Is there risk he’s goi2021-01-18 · Market Updates2021 Backdrop and Chart BookThe Backdrop for the Beginning of 2021 The Good Better Economic Data – Economic data, which lags the stock market, hit rock-bottom as we expected during April and May, bu2021-01-06 · Market UpdatesGeorgia on My MindWhat seemed like an outside probability just a few weeks ago looks increasingly likely to become reality. With Democrats likely to take both GA Senate seats, the balance 2021-01-05 · Market UpdatesA Price to PayYou’re driving down the highway with a speed limit of 60 MPH. You’ve set cruise control to 67, the sweet spot where you probably won’t get pulled over, and if you did, th2021-01-04 · Market Updates6 Market Lessons, 3 Market CatalystsAs I start to aggregate data from the past year and continue to gather thoughts on the upcoming months, I wanted to share some initial thoughts as we kick 2020 to the cur2021-01-03 · Market UpdatesStocks, Bonds, and Inflation…The Year AheadAs we sit in bewilderment at equity performance in 2020, we take a step back to understand what happened. We can largely thank the year’s impressive equity returns to two2020-12-31 · Market Updates2021 Consensus Market ThemesYou Have to Know Where You’ve Been to Know Where You’re Going The profile of the global equity market through the current recession has, so far, been more extreme than mo2020-12-02 · Market UpdatesA Quick Look at BanksIt’s been a challenging year for bank stocks, to say the least, as the COVID-19 pandemic began to take hold early on. The chart below shows a recovery from the March lows2020-12-02 · Market UpdatesThe Math of Holding Too Many BondsWe thought AQR did a great job describing the history of hedges and the high cost of carry. Their conclusion is that hedges have proven too costly to be worth using. But 2020-11-30 · Bonds & RatesToday’s High Yield? Not Worth the RiskInvestors that took advantage of the blowout in credit spreads back in March have seen incredible gains from the bottom. The credit markets experienced a liquidity freeze2020-11-18 · Market UpdatesQ3 Earnings Recap: Don’t Bet Against AmericaIt’s not often that earnings season takes a back seat to other global events, but that was the case in Q3 2020 as the US election, increasing COVID-19 cases, a potential 2020-11-12 · Market UpdatesStimulus: The New QE?When Quantitative Easing (“QE”) was introduced to the markets by the Fed back in the Financial Crisis, we believe it quickly became THE influence on stock prices, displac2020-11-03 · Market UpdatesProcess Over PoliticsLeft or right, blue or red, no matter the outcome on November 3rd, or even if there is no outcome on November 3rd, it won’t change the way we view portfolio construction.2020-11-02 · Market UpdatesWhat if the Election Drags Out?This year’s election feels unprecedented – that’s because it is. It is coming against the backdrop of a severe recession, a global pandemic, elevated unemployment, and so2020-10-30 · Market UpdatesWhat Can We Really Expect From Bonds?2020 has been a roller coaster for both fixed income and equity investors. As of Oct 28, the Barclays Aggregate has outperformed the S&P 500 by over 300 basis points 2020-10-23 · Market UpdatesTaking Charlie Munger’s Advice“Diversification is protection against ignorance. It makes little sense if you know what you are doing.” Warren Buffett Mr. Buffett has a way with words, and has clearly 2020-10-15 · Market UpdatesQ3 2020 Recap : Aptus Chart BookThe Backdrop for the Remainder of 2020 The Good Better Economic Data – Economic data, which lags the stock market, hit rock-bottom as we expected during April and May, bu2020-10-02 · Market UpdatesQ3 2020 Review: Where Is the Market?Context for our forthcoming Q3 Chart Book, a quick run through some highlights: Global markets rallied in Q3, as both domestic and international stocks posted very health2020-10-02 · Market UpdatesThe Cost and Benefits of HedgingEmbrace the Cost of Hedging…with open arms! We have been excited to write this month’s update. Hedging to improve outcomes is the center of our business and approach to m2020-09-29 · Market UpdatesNavigating the Election: Potential Winners & LosersElection years have always had a funny impact on the markets, every little piece of news (and noise) is capable of sending the indexes up or down – and sometimes, up and 2020-09-28 · Investment ConceptsThe Big Miss – Golf’s Connection to InvestingTiger Woods, one of the greatest golfers of all time, has changed his swing four times in his professional career. One might ask why someone with two separate streaks of 2020-09-02 · Market UpdatesSeptember 2020: Will Value Stocks Ever Take the Baton?From our view, what has happened matters less than what might happen – keep that in mind as you continue. The discrepancy between growth and value has been astonishing en2020-08-28 · Bonds & RatesChairman Powell Letting Loose in Jackson HoleAs we think about economics from a high level it is arguably one of the most interesting and misunderstood topics we face as investors and humans. It is truly the crossro2020-08-14 · Market UpdatesWhy ETFs Are Tax-EfficientMost people hate taxes – that’s one reason they should love ETFs. Here’s what I mean, “About 50% of all equity mutual funds paid out capital gains in 2013, whereas fewer 2020-08-03 · Market UpdatesAugust 2020 : Avoid Losing BigRule #1 – Avoid major losses. Abide by rule number one, and everything is made easier. By everything, we mean the ability to generate sufficient returns and compound weal2020-07-30 · Bonds & RatesHidden Risks in “Conservative” PortfoliosWe have the privilege to receive modeled portfolios from advisors all over. They vary in risk tolerance and philosophy although most have some degree of blending passive 2020-07-09 · Market UpdatesQ2 Chart Book : The Fed Backstop in PicturesThe Good Better Economic Data – Economic data, which lags the stock market, hit rock-bottom as expected during April and May, but some early signs of a recovery have begu2020-07-08 · Market UpdatesWhat Are Market Bulls Expecting?You could be forgiven in thinking that the last quarter felt like one of the longest three months of your life. In what now seems an eternity ago, it could be hard to for2020-07-02 · Market UpdatesJuly 2020: Most Efficient Rebalance EverWhy You Don’t Need to Trade This Quarter When it ain’t broke…don’t fix it. There hasn’t been a better quarter to drive this point home. Our objective is to sufficiently c2020-06-23 · Market UpdatesCheap or Expensive ????‍“I can’t make sense of this market” – we’ve heard that a few times during this market rip higher. For any readers who have no clue what to think, hopefully this will help2020-06-10 · Bonds & RatesCan the Fed Keep Mortgages Propped?Avoiding Agency Mortgage Allocations in our Models We’ve been saying since the middle of last year that the percentage of total returns in fixed income coming from price 2020-05-30 · Bonds & RatesWhat Bonds Do You Own?The mathematics of compounding: big losses are essentially ALL that matter to your rate of compounding, not the small losses—and not even the big or small gains. The big 2020-05-14 · Market UpdatesMid-May 2020: What Happens Now?Here Is What We Are About to Tell You in More Detail Below: We currently sit with reduced traditional bond exposure and cheap equity exposure so we can own more stocks an2020-05-08 · Process PapersAptus Services BrochureAptus strives to help advisors impact clients, in every way possible. To us, the best business is the one with the happiest clients…it’s our mission to help you deepen th2020-05-01 · Bonds & RatesThe Fed BazookaSource: Federal Reserve Bank of St. Louis, as of 04.30.2020 As many market participants predicted, the Fed would have limited effectiveness in using their monetary policy2020-04-29 · Bonds & RatesNavigating a Choppy Bond Market…Don’t Fight the FedAs we navigate through these very uncertain times, we’d like to take a deeper dive into different sectors of the fixed income and credit space. The fixed income markets a2020-04-09 · Market UpdatesQ1 Charts: COVID-19 Infects the EconomyWhat can anyone say about COVID that’s not been already said? Not much, and the range of predicted outcomes is so wide that the real investment risk is a lack of openness2020-04-02 · Market UpdatesApril 2020: Valuations MatterIt’s the end of Q1 2020 and all hell has broken loose. The Covid-19 pandemic, not to mention the oil fiasco, has brought havoc to the health of our people, our economy, a2020-03-24 · Market UpdatesLate March 2020: A Bridge to OpportunityAs market turmoil continues, we wanted to touch on the work being done here daily. Specifically as it relates to how we view and utilize hedging inside our strategies and

Get the research in your inbox.

Loading…