MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

Barron's on Funds & Retirement, 9/13/25

yogibearbullyogibearbull
edited September 13 in Fund Discussions
This ad-hoc feature returns after a while.

Link1 Link2

TRADER. Small-caps (SCs) have been strong since early-August. Lower rates and higher earnings may make this rally sustainable.

INTERNATIONAL TRADER. EM DEBT is attractive – EMB ($ denominated), LEMB (local currency), etc. US tariffs haven’t impacted the EM bonds much because (i) several countries with high US tariffs (China, Brazil, India, South Africa) export less than 3% of their GDP to US, (ii) countries with higher exports to US (Mexico, S Korea, Taiwan, Malaysia) may be able to lower their rates as the Fed lowers rates, (iii) uncertainties in the developed world have benefited the EMs. Tariffs would cause a global economic slowdown that would be bearish for stocks, but bullish for bonds. BB-rated EM sovereigns (Turkey, Guatemala, Paraguay, Serbia, Albania) are attractive. Risk is that credit spreads are also tight.

OPTIONS. If you want to chase a rallying stock that got away, use options – combine call-spreads with selling puts. WMT is used as an example, but it can be used for AI highflyers, GDX, etc.

There is more on GOLD in STREETWISE, Link1.

BEARISH. Small-caps (R2000 may finally make a new high since 11/2021; fwd P/E 16.1 (low), but 33 (high) if only profitable companies are considered; this may just be a short covering rally; notwithstanding positives stated elsewhere – lower rates, higher earnings, lower taxes; balances bullish SC stories elsewhere in this issue).

FUNDS. Brandon NELSON, manager of small-cap (SC) growth CTASX / CTSIX (ER 1.30% / 1.05%; no-load NTF at Fidelity and Schwab) says that SCs will benefit from lower rates and improving earnings. He keeps winners but prunes laggards quickly. He watches credit spreads for indications of slowing economy.

RETIREMENT & WELL BEING. Retirees can still find decent income from corporates (IGSB, VCIT), core-plus bond funds (OAKCX / OANCX) and foreign bond funds (GOBAX / GOBIX, IBND).
Sign In or Register to comment.