Latest news with #RussellInvestments
Yahoo
2 days ago
- Business
- Yahoo
5 reasons Wall Street is in chill mode
Stock markets are at records despite macroeconomic risks. Investors are cautious about President Donald Trump's tariff threats and global economic issues. Momentum and AI hype drive tech gains, while Fed rate cuts support stock growth. Stock markets are shrugging off major risks and smashing records — so much so that even seasoned investors are scratching their heads. On Friday, the S&P 500 and Nasdaq 100 closed little changed after notching record highs on Thursday. Both indexes are hovering near the all-time highs they reached earlier this month, continuing a rebound after the post-"Liberation Day" sell-off. That rebound has stunned analysts, given the pile-up of macro risks, particularly President Donald Trump's ongoing threats to impose steep tariffs on key trading partners. Yet investors keep piling in — even if many are doing so with one eye on the exit. "In many ways, this is a rally that really no one's had much conviction in it," Andrew Pease, the Asia Pacific head of investments for Russell Investments, told Business Insider. He said the firm's analysis shows investors are neutral, not euphoric. "Everyone's very wary about this particular rally," Pease said. Wall Street veterans have spent months warning that investors may be underestimating the risks. "Unfortunately, I think there is complacency in the markets," JPMorgan Chase's CEO, Jamie Dimon, said earlier in July, referring to tariffs. Those concerns may soon be put to the test. Trump's proposed levies on trading partners — ranging from 10% to 70% — threaten to disrupt supply chains, fuel inflation, and slow global growth. "I think the market is too complacent about the damage of such high tariffs on both the US and the global economy," said Zhiwei Zhang, chief economist at Pinpoint Asset Management. It's not just tariffs that suggest trouble could be brewing. China's economic slowdown, Middle East tensions, and softening US data all suggest trouble could be brewing. So why are stocks still surging? 1. The US economy still looks resilient Despite inflationary concerns tied to Trump's tariff threats, the US economy remains on solid footing. As BI's Jennifer Sor recently reported, recession fears are fading. Big banks kicked off earnings season on a strong note last week. The consumer "basically seems to be fine," JPMorgan's chief financial officer, Jeremy Barnum, said on an earnings call on July 15. That's despite some cracks in the data. US GDP contracted 0.5% in the third quarter, and consumer spending growth slowed to 0.5% in Q1 — down sharply from 4% in Q4 2024. But retail sales rose 0.6% in June from May and the job market remains robust. The US added 147,000 jobs in June, well above expectations, while unemployment dipped to 4.1% from 4.2%. American consumers are, as top CEOs said recently, "a little numb" to tariffs and "very resilient," even as inflation ticks up. 2. Betting on the TACO trade Some investors are leaning on the "TACO trade" — short for "Trump Always Chickens Out." Markets are increasingly assuming that Trump's tariff threats are more talk than action. "Finally, the market is not wrong in pricing in a good chance that Trump will not follow through with his latest tariff threats, instead settling for some deal by 1 August," wrote Davide Oneglia, the director of European and global macro at Global Lombard, on July 16, referring to the trade deadline. Daniela Sabin Hathorn, senior market analyst at agreed: "The prevailing view among investors seems to be that these tariff threats are more bark than bite — a negotiating tactic rather than a firm policy stance." That's created what analysts call "asymmetry:" Markets could keep rising if talks go well, but they are vulnerable to sharp corrections if discussions break down. 3. FOMO + MOMO = a runaway rally Even as risks loom, traders don't want to miss out. That's fueling what analysts describe as a combination of FOMO, or fear of missing out, and MOMO, or momentum-based trading. Retail traders have been jumping back in, chasing gains as indexes push higher, even if they missed the earlier run-up. "MOMO and FOMO" are likely to dominate until proven otherwise," wrote Steve Sosnick, the chief strategist at Interactive Brokers, in a June 30 note. "Newton's First Law applies: A body (market) that is in motion will stay in motion until acted upon by an external source," he added. Sosnick said that implied volatility remains low, even as risks mount, suggesting investors are choosing to look past potential trouble. Pease at Russell Investments agreed that momentum could unravel quickly — but only if there's a clear macro shock. 4. Fed cuts are back on the table The Federal Reserve has signaled it could cut rates another two times this year — a boon for stocks. Lower rates reduce bond yields, making equities more attractive. They also encourage borrowing and investment. But rising inflation could complicate that path. In June, US inflation climbed 2.7% from a year ago, up from 2.4% in May. Dimon warned that the Fed might still hike if inflation proves sticky. He sees a 40% to 50% chance of another increase this cycle. 5. AI continues to power tech gains AI hype continues to drive the market, especially Big Tech. "AI is still the dominant theme, particularly as the Big Tech companies are giving solid earnings guidance and other companies are joining in as well, then that's the world in which you could see that this rally has further to go," Pease said, while cautioning that gains could become overdone. Bank of America's latest global fund manager survey, published July 15, shows 40% of respondents already see productivity gains from AI adoption. Another 21% expect gains within the next year. Caution still lingers Despite the optimism, there's unease under the surface. Summer trading is thinner, meaning volatility can spike quickly. Last year's yen carry trade unwind is a fresh reminder that things can turn fast. Trump's tariff threats are still on the table, but Oneglia thinks markets are right to be relatively unfazed. "Negotiations have not broken down and the market is acting rationally — at least on this," Oneglia wrote. Still, others are more cautious. "Ultimately, markets are at a crossroads," wrote Hathorn. "The rally, particularly in US equities, has been driven by optimism and underpinned by assumptions about political behavior." Until August, market asymmetry remains, so there's "room to rise on good news, but the potential for a swift and severe correction if trade tensions escalate," Hathorn added. Read the original article on Business Insider
Business Insider
2 days ago
- Business
- Business Insider
5 reasons Wall Street is in chill mode
Stock markets are shrugging off major risks and smashing records — so much so that even seasoned investors are scratching their heads. On Friday, the S&P 500 and Nasdaq 100 closed little changed after notching record highs on Thursday. Both indexes are hovering near the all-time highs they reached earlier this month, continuing a rebound after the post-"Liberation Day" sell-off. That rebound has stunned analysts, given the pile-up of macro risks, particularly President Donald Trump's ongoing threats to impose steep tariffs on key trading partners. Yet investors keep piling in — even if many are doing so with one eye on the exit. "In many ways, this is a rally that really no one's had much conviction in it," Andrew Pease, the Asia Pacific head of investments for Russell Investments, told Business Insider. He said the firm's analysis shows investors are neutral, not euphoric. "Everyone's very wary about this particular rally," Pease said. Wall Street veterans have spent months warning that investors may be underestimating the risks. "Unfortunately, I think there is complacency in the markets," JPMorgan Chase's CEO, Jamie Dimon, said earlier in July, referring to tariffs. Those concerns may soon be put to the test. Trump's proposed levies on trading partners — ranging from 10% to 70% — threaten to disrupt supply chains, fuel inflation, and slow global growth. "I think the market is too complacent about the damage of such high tariffs on both the US and the global economy," said Zhiwei Zhang, chief economist at Pinpoint Asset Management. It's not just tariffs that suggest trouble could be brewing. China's economic slowdown, Middle East tensions, and softening US data all suggest trouble could be brewing. So why are stocks still surging? 1. The US economy still looks resilient Despite inflationary concerns tied to Trump's tariff threats, the US economy remains on solid footing. As BI's Jennifer Sor recently reported, recession fears are fading. Big banks kicked off earnings season on a strong note last week. The consumer "basically seems to be fine," JPMorgan's chief financial officer, Jeremy Barnum, said on an earnings call on July 15. That's despite some cracks in the data. US GDP contracted 0.5% in the third quarter, and consumer spending growth slowed to 0.5% in Q1 — down sharply from 4% in Q4 2024. But retail sales rose 0.6% in June from May and the job market remains robust. The US added 147,000 jobs in June, well above expectations, while unemployment dipped to 4.1% from 4.2%. American consumers are, as top CEOs said recently, "a little numb" to tariffs and "very resilient," even as inflation ticks up. 2. Betting on the TACO trade Some investors are leaning on the "TACO trade" — short for "Trump Always Chickens Out." Markets are increasingly assuming that Trump's tariff threats are more talk than action. "Finally, the market is not wrong in pricing in a good chance that Trump will not follow through with his latest tariff threats, instead settling for some deal by 1 August," wrote Davide Oneglia, the director of European and global macro at Global Lombard, on July 16, referring to the trade deadline. Daniela Sabin Hathorn, senior market analyst at agreed: "The prevailing view among investors seems to be that these tariff threats are more bark than bite — a negotiating tactic rather than a firm policy stance." That's created what analysts call "asymmetry:" Markets could keep rising if talks go well, but they are vulnerable to sharp corrections if discussions break down. 3. FOMO + MOMO = a runaway rally Even as risks loom, traders don't want to miss out. That's fueling what analysts describe as a combination of FOMO, or fear of missing out, and MOMO, or momentum-based trading. Retail traders have been jumping back in, chasing gains as indexes push higher, even if they missed the earlier run-up. "MOMO and FOMO" are likely to dominate until proven otherwise," wrote Steve Sosnick, the chief strategist at Interactive Brokers, in a June 30 note. "Newton's First Law applies: A body (market) that is in motion will stay in motion until acted upon by an external source," he added. Sosnick said that implied volatility remains low, even as risks mount, suggesting investors are choosing to look past potential trouble. Pease at Russell Investments agreed that momentum could unravel quickly — but only if there's a clear macro shock. 4. Fed cuts are back on the table The Federal Reserve has signaled it could cut rates another two times this year — a boon for stocks. Lower rates reduce bond yields, making equities more attractive. They also encourage borrowing and investment. But rising inflation could complicate that path. In June, US inflation climbed 2.7% from a year ago, up from 2.4% in May. Dimon warned that the Fed might still hike if inflation proves sticky. He sees a 40% to 50% chance of another increase this cycle. 5. AI continues to power tech gains AI hype continues to drive the market, especially Big Tech. "AI is still the dominant theme, particularly as the Big Tech companies are giving solid earnings guidance and other companies are joining in as well, then that's the world in which you could see that this rally has further to go," Pease said, while cautioning that gains could become overdone. Bank of America's latest global fund manager survey, published July 15, shows 40% of respondents already see productivity gains from AI adoption. Another 21% expect gains within the next year. Caution still lingers Despite the optimism, there's unease under the surface. Summer trading is thinner, meaning volatility can spike quickly. Last year's yen carry trade unwind is a fresh reminder that things can turn fast. Trump's tariff threats are still on the table, but Oneglia thinks markets are right to be relatively unfazed. "Negotiations have not broken down and the market is acting rationally — at least on this," Oneglia wrote. Still, others are more cautious. "Ultimately, markets are at a crossroads," wrote Hathorn. "The rally, particularly in US equities, has been driven by optimism and underpinned by assumptions about political behavior." Until August, market asymmetry remains, so there's "room to rise on good news, but the potential for a swift and severe correction if trade tensions escalate," Hathorn added.
Globe and Mail
14-07-2025
- Business
- Globe and Mail
Russell Investments Canada Limited Announces Monthly Distributions for Exchange Traded Fund Series
Russell Investments Canada Limited ('Russell Investments Canada') today announced cash distributions for the ETF Series of certain mutual funds ('ETF Series') for the months of July, August, and September. Unitholders of record of the ETF Series, as of the Record Date, will receive a per-unit cash distribution payable on the Payment Date Details of the per-unit cash distribution amount are as follows: Russell Investments Fixed Income Pool RIFI $0.0600 78249T103 CA78249T1030 July 22, 2025 July 25, 2025 TSX August 20, 2025 August 25, 2025 September 22, 2025 September 25, 2025 Russell Investments Global Infrastructure Pool RIIN $0.0770 78250R103 CA78250R1038 July 22, 2025 July 25, 2025 TSX August 20, 2025 August 25, 2025 September 22, 2025 September 25, 2025 Russell Investments Real Assets RIRA $0.0670 78250P107 CA78250P1071 July 22, 2025 July 25, 2025 TSX August 20, 2025 August 25, 2025 September 22, 2025 September 25, 2025 The Manager, Russell Investments Canada Limited, administers and manages the ETF Series. About Russell Investments Canada Limited Russell Investments Canada Limited is a wholly owned subsidiary of Russell Investments Group, Ltd. Established in 1985, Russell Investments Canada Limited has its head office in Toronto. About Russell Investments Russell Investments is a leading global investment solutions partner providing a wide range of investment capabilities to institutional investors, financial intermediaries, and individual investors around the world. Since 1936, Russell Investments has been building a legacy of continuous innovation to deliver exceptional value to clients, working every day to improve people's financial security. The firm has $478 billion in assets under management (as of 03/31/2025) for clients in 30 countries. Headquartered in Seattle, Washington, Russell Investments has offices in 17 cities around the world. For more information, please visit Not for distribution to U.S. newswire services or dissemination in the United States. Commissions, management fees and expenses all may be associated with an investment in the ETF Series Units. Investment objectives, risks, fees, expenses, and other important information are contained in the prospectus. Please read the prospectus and ETF Facts carefully before investing. The ETF Series Units are not guaranteed, their value may change frequently and past performance may not be repeated. Certain statements included in this news release may contain forward-looking statements. Forward-looking statements are statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as or similar to, "expects", "anticipates", "believes" or negative versions thereof. Forward looking statements are based on current expectations and projections about future events and are inherently subject to, among other things, risk, uncertainties and assumptions about economic factors that could cause actual results and events to differ materially from what is contemplated. We encourage you to consider these and other factors carefully before making any investment decisions and we urge you to avoid placing undue reliance on forward-looking statements. Russell Investments has no specific intention of updating any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. For a summary of the risks of an investment in the fund, please see the specific risks of mutual funds section of the prospectus. Units of ETF Series trade like stocks, fluctuate in market value and may trade at a discount to their net asset value, which may increase risk of loss. Distributions are not guaranteed and are subject to change and/or elimination. Income tax considerations for investors are contained in the prospectus. Please read the prospectus carefully before investing. Russell Investments' ownership is composed of a majority stake held by funds managed by TA Associates Management, L.P., with a significant minority stake held by funds managed by Reverence Capital Partners, L.P. Certain of Russell Investments' employees and Hamilton Lane Advisors, LLC also hold minority, non-controlling, ownership stakes. Copyright © Russell Investments Canada Limited 2025. All rights reserved. Frank Russell Company is the owner of the Russell trademarks contained in this material and all trademark rights related to the Russell trademarks, which the members of the Russell Investments group of companies are permitted to use under license from Frank Russell Company.
Economic Times
13-07-2025
- Business
- Economic Times
Can a $1,000 Trump Account make your baby a future millionaire?
Synopsis A new federal program called Trump accounts aims to boost children's wealth. Every US-born child between 2025 and 2028 will receive a $1,000 contribution. Families and employers can also contribute annually. Investment experts believe these accounts could grow substantially over time. Even small contributions could lead to significant savings for college or retirement. This initiative offers a unique wealth-building opportunity. Representative Image A new federal program—nicknamed 'Trump accounts'—could set your children on a path to millionaire status. These accounts will provide a $1,000 one-time government contribution to every U.S.-born child between 2025 and 2028. Parents and employers can also make annual contributions—up to $5,000 from families and $2,500 from employers—which can be invested in low-cost mutual funds or ETFs tied to major U.S. stock indexes like the S&P 500. Though details are still emerging as federal agencies draft regulations, investment experts say the Trump accounts could deliver substantial long-term gains. With consistent contributions and favorable market performance, these accounts have the potential to grow exponentially through compound a report, the Fortune wrote that if a family contributes just $20 a week ($1,000/year) and an employer adds the $2,500 maximum annually, the account could grow to over $100,000 by age 21—assuming a modest 7% annual return. Keep investing, and that account could be worth over $2 million by retirement age, the report added citing estimates from Russell Investments CEO Zach at the maximum allowed contribution of $5,000 per year, a child's account could be worth $190,000 after 18 years with an 8% annual return—enough to help with college, a down payment on a home, or retirement savings. A Head Start Other Accounts Don't Offer Unlike Roth IRAs, which require earned income, or 529 plans that are primarily for education expenses, Trump accounts can be opened at birth and are solely focused on wealth-building. That early start provides a major financial even if families can't contribute beyond the initial $1,000, the power of compound interest still adds up. At an 8% return, that initial amount alone could grow to nearly $4,000 in 18 years—completely What are Trump Accounts and who qualifies?Trump Accounts are federally backed investment accounts created for every baby born in the U.S. between January 1, 2025, and December 31, 2028. Each child receives a $1,000 one-time government contribution. Parents or legal guardians—who must have a Social Security number and work authorization—can open and manage the account, contributing up to $5,000 annually.2. How are Trump Account funds invested and used?The funds are invested in a U.S. stock market index. Over time, the investment grows with the market. The money can later be used for key life goals such as college tuition, vocational training, buying a home, or launching a business.3. When can a child access the funds?Partial withdrawals are allowed starting at age 18 for approved purposes. Full access is granted at age 25 for specific goals like education or entrepreneurship. Unrestricted use of the funds is permitted once the account holder turns 30.4. Who manages the account until the child becomes an adult?Until the child turns 18, the account is managed by their parent or legal guardian, who makes all investment and contribution decisions.5. Why are some financial experts skeptical of Trump Accounts?Critics point out that unlike 529 plans, Trump Accounts offer no tax deductions and earnings are taxed as ordinary income. Financial advisers like Amy Spalding continue to favor 529 plans for their tax advantages and broader investment options.
Time of India
13-07-2025
- Business
- Time of India
Can a $1,000 Trump Account make your baby a future millionaire?
A new federal program—nicknamed 'Trump accounts'—could set your children on a path to millionaire status. These accounts will provide a $1,000 one-time government contribution to every U.S.-born child between 2025 and 2028. Parents and employers can also make annual contributions—up to $5,000 from families and $2,500 from employers—which can be invested in low-cost mutual funds or ETFs tied to major U.S. stock indexes like the S&P 500. The Power of Early Investing Though details are still emerging as federal agencies draft regulations, investment experts say the Trump accounts could deliver substantial long-term gains. With consistent contributions and favorable market performance, these accounts have the potential to grow exponentially through compound interest. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Join new Free to Play WWII MMO War Thunder War Thunder Play Now Undo In a report, the Fortune wrote that if a family contributes just $20 a week ($1,000/year) and an employer adds the $2,500 maximum annually, the account could grow to over $100,000 by age 21—assuming a modest 7% annual return. Keep investing, and that account could be worth over $2 million by retirement age, the report added citing estimates from Russell Investments CEO Zach Buchwald. Even at the maximum allowed contribution of $5,000 per year, a child's account could be worth $190,000 after 18 years with an 8% annual return—enough to help with college, a down payment on a home, or retirement savings. Live Events A Head Start Other Accounts Don't Offer Unlike Roth IRAs, which require earned income, or 529 plans that are primarily for education expenses, Trump accounts can be opened at birth and are solely focused on wealth-building. That early start provides a major financial advantage. And even if families can't contribute beyond the initial $1,000, the power of compound interest still adds up. At an 8% return, that initial amount alone could grow to nearly $4,000 in 18 years—completely hands-off. FAQs 1. What are Trump Accounts and who qualifies? Trump Accounts are federally backed investment accounts created for every baby born in the U.S. between January 1, 2025, and December 31, 2028. Each child receives a $1,000 one-time government contribution. Parents or legal guardians—who must have a Social Security number and work authorization—can open and manage the account, contributing up to $5,000 annually. 2. How are Trump Account funds invested and used? The funds are invested in a U.S. stock market index. Over time, the investment grows with the market. The money can later be used for key life goals such as college tuition, vocational training, buying a home, or launching a business. 3. When can a child access the funds? Partial withdrawals are allowed starting at age 18 for approved purposes. Full access is granted at age 25 for specific goals like education or entrepreneurship. Unrestricted use of the funds is permitted once the account holder turns 30. 4. Who manages the account until the child becomes an adult? Until the child turns 18, the account is managed by their parent or legal guardian, who makes all investment and contribution decisions. 5. Why are some financial experts skeptical of Trump Accounts? Critics point out that unlike 529 plans, Trump Accounts offer no tax deductions and earnings are taxed as ordinary income. Financial advisers like Amy Spalding continue to favor 529 plans for their tax advantages and broader investment options.
