Core Insights - Foreign equities have shown significant performance amidst challenges like tariff issues and a declining dollar, providing diversification and substantial returns for investors [1] - The T. Rowe Price International Equity Research ETF (TIER) launched in June with a focus on differentiating itself from other foreign equities ETFs through an active investment strategy [2] Fund Performance and Strategy - TIER charges a competitive fee of 38 basis points and has achieved a return of 11.7% since its inception according to YCharts data [3] - The ETF's portfolio mirrors the geographical and sector exposures of the MSCI ACWI (ex USA) Index, but utilizes T. Rowe Price's fundamental research to enhance its allocations and aims to outperform the index through rigorous security analysis [4] Active Management Advantages - The active management approach of TIER allows it to adapt to macro trends and events, which is particularly beneficial in foreign markets where information access may be limited [5] - The unique bottom-up process of TIER positions it well for future opportunities in foreign markets, especially as the landscape may require more detailed analysis to identify potential investments [6]

Core Insights - The ETF ecosystem is rapidly expanding, with particular attention on the T. Rowe Price Small-Mid Cap ETF (TMSL), which has recently sent a buy signal and may carry momentum into the new year [1][2] Performance Metrics - TMSL has seen its price rise above both its 50 and 200-day simple moving averages, indicating a traditional buy signal [2] - The ETF has returned 12.7% year-to-date (YTD) in 2025, outperforming the category average of 7% [3] - Over the last three years, TMSL has delivered a return of 45.2% [3] Market Context - Small-cap stocks have generally underperformed recently, but TMSL may be positioned for a positive year in 2026, potentially benefiting from anticipated rate cuts by the Federal Reserve [4] - Investing in small-caps like TMSL offers diversification away from the concentration risk associated with large-cap tech stocks [5] Investment Strategy - TMSL employs an active SMIDcap approach, leveraging T. Rowe Price's fundamental research to identify firms with strong earnings quality, effective management capital allocation, high return on equity, and near-term appreciation potential [6]

Core Insights - Inflation remains a persistent challenge for consumers and the stock market, particularly since the pandemic, influencing economic and political narratives [1] - The Federal Reserve's rate cuts and the limited availability of official inflation data have increased inflation risk for investors [1] Active ETFs - Active ETFs provide flexibility and a focus on fundamental research, which can help navigate macroeconomic uncertainties [2] - These ETFs utilize fundamental metrics like cash flow and profitability to identify resilient investment opportunities [2] - Active ETFs can adjust their investments more readily than passive funds, allowing for strategic responses to market changes [2] Inflation-Sensitive Investments - Certain active ETFs target sectors that benefit from rising inflation, focusing on input goods that typically see price increases [3] - A specific example is the T. Rowe Price Natural Resources ETF (TURF), which charges a 44 basis point fee and invests in global companies within key supply chains [4] - The lack of official inflation data may complicate market analysis, but active ETFs can provide flexibility and potential outperformance [4]

Core Insights - The current market environment is characterized as a "golden age of active investing," driven by mispricings and opportunities in smaller market cap securities and international stocks [10][14][61] - There is a significant disparity in market capitalization among the largest companies, with some reaching valuations of over $4 trillion, while smaller companies like American Airlines have market caps around $15 billion [12][13] - The focus on free cash flow yields is emphasized, with many large-cap tech companies exhibiting low yields compared to smaller or undervalued companies [19][90] Market Trends - Active investing has gained traction since 2020, largely due to the dominance of large-cap technology companies and the distortions caused by passive investing [10][11] - International markets, particularly in Europe, have shown strong performance, with the Italian ETF up 52.7% this year, indicating opportunities outside the U.S. [14][57] - The S&P 500's P/E ratio is currently around 31, which, while high, is not unprecedented compared to historical peaks [35][36] Investment Strategies - The strategy of being contrarian is highlighted, suggesting that investors should look for mispriced opportunities and consider free cash flow yields as a critical metric for investment decisions [9][89] - REITs, particularly Realty Income, are suggested as potentially undervalued due to a long period of underperformance, setting the stage for future gains [32][34] - The importance of starting valuation is reiterated, with a focus on companies that have high free cash flow yields as attractive investment opportunities [94] Valuation Metrics - Price-to-sales ratios are discussed as a key valuation metric, with many companies trading at multiples significantly above historical norms, indicating potential overvaluation [45][46] - The current market environment shows a bifurcation where some stocks are highly valued while others remain undervalued, suggesting a need for careful selection [47][61] Macro Economic Factors - The U.S. dollar's performance is noted as a significant factor influencing market dynamics, with a weaker dollar benefiting international investments and commodities [85][86] - The potential for interest rate cuts by the Federal Reserve is anticipated, which could impact various sectors differently, particularly those reliant on economic growth [68][71]

Core Insights - The "Magnificent Seven" companies continue to dominate market performance, but recent turbulence raises questions about their ability to deliver [1] - T. Rowe Price's analysis suggests that market leadership may broaden beyond these tech giants, indicating potential opportunities for active investing strategies [2][3] Market Leadership - The spread of earnings growth between the Tech+ and extech sectors of the S&P 500 Index is at its narrowest since Q1 2023, suggesting a potential shift in market dynamics [3] - Active investing strategies could allow investors to capitalize on companies positioned for growth across various sectors, not just technology [3] Investment Strategies - The T. Rowe Price U.S. Equity Research ETF (TSPA) exemplifies an active ETF that utilizes fundamental research to guide investment decisions, charging a competitive fee of 34 basis points [4] - Active ETFs may provide a viable option for investors looking to prepare for a broader set of market opportunities [4]

Market Overview - The tech sector experienced a significant selloff, with approximately $500 billion lost from chip stocks, leading to a mixed performance in major indexes [3][4][5] - The NASDAQ composite rebounded by 0.51%, while the S&P 500 rose by 0.31% [3] - Bitcoin prices dipped below $100,000 but have shown a 10% increase since the start of the year [5] Technology Sector Insights - Active management in ETFs is gaining traction as investors seek to navigate volatility in the tech sector [6][8] - The focus on technology remains strong, with an emphasis on productivity gains and free cash flow generation [16][22] - Companies are exploring various themes within technology, including semiconductor manufacturing and data center infrastructure [19][23] Fast Casual Dining Trends - Cava has reduced its full-year sales growth forecast from 6-8% to 3-4% due to macroeconomic pressures affecting younger consumers [31][32] - The company has seen a decline in visit frequency among the 25-35 age demographic, attributed to rising costs and economic challenges [32][35] - Despite challenges, Cava reported a 20% year-over-year revenue growth and a 67% growth on a two-year basis [38] McDonald's Performance - McDonald's reported US store sales that exceeded forecasts for the second consecutive quarter, focusing on value offerings amid a challenging environment [57][59] - The company has implemented promotional strategies, including a $5 meal deal, to attract customers [58][60] - Analysts predict increased promotional activity across the restaurant industry as brands compete for market share [63][64] Analyst Calls and Stock Movements - Super Micro reported weaker-than-expected results, leading to an 8% drop in shares, but some analysts view this as a buying opportunity [53] - Pinterest's stock fell after an earnings miss and a weaker forecast, prompting price target cuts from multiple firms [54] - Yum Brands saw a price target increase following better-than-expected results, with potential plans to sell its Pizza Hut segment [56]

You have some interesting things to say about how to be an active investor. >> First step is to figure out what kind of loss can you live with. Second step is to take your portfolio and look at it backwards.How did that portfolio perform in Q1 2025. How about 2022. How about 2008.We're sitting with one referral young lady in her 70s. She's been to over 70 countries. I'm like, I want to follow you right wherever you go.Her account, she did not recognize was off 70% in 2008. Now, the market, as you probably r ...

Financial Performance - Federated Hermes reported earnings per diluted share (EPS) of $1.34 for Q3 2025, an increase from $1.06 in Q3 2024, with net income rising to $104.1 million from $87.5 million year-over-year [1][21]. - Revenue for Q3 2025 increased by $61.0 million or 15% compared to Q3 2024, primarily due to higher average money market and equity assets [8][11]. - Operating expenses rose by $43.3 million or 15% in Q3 2025, driven by increased distribution expenses and fluctuations in foreign currency exchange rates [9][11]. Asset Management - Total managed assets reached a record $871.2 billion as of September 30, 2025, up $70.7 billion or 9% from $800.5 billion a year earlier [2][16]. - Money market assets also hit a record of $652.8 billion, increasing by $59.8 billion or 10% from $593.0 billion year-over-year [7][16]. - Equity assets grew to $94.7 billion, up $11.1 billion or 13% from the previous year, while fixed-income assets reached a record $101.8 billion, up $1.6 billion or 2% [4][5][16]. Fund Performance - The company experienced record net sales of equity funds in Q3 2025, with strong interest in its MDT equity and alternative quantitative investment offerings [3][16]. - Top-selling equity funds included the Federated Hermes MDT Mid Cap Growth Fund and the Federated Hermes MDT Large Cap Growth Fund [4]. - Fixed-income funds that performed well included the Federated Hermes Ultrashort Bond Fund and the Federated Hermes Sustainable Global Investment Grade Credit Fund [5]. Dividends and Shareholder Returns - The board of directors declared a dividend of $0.34 per share, payable on November 14, 2025, to shareholders of record as of November 7, 2025 [3][21]. - The company repurchased 20,808 shares of its class B common stock during Q3 2025 due to employee restricted stock forfeitures [3].

Core Viewpoint - The Federal Reserve's recent interest rate cut of 25 basis points is expected to positively impact investor portfolios and market outlooks, emphasizing the importance of active investing strategies to navigate the resulting economic shifts [1]. Group 1: Impact on Equities - The Fed's rate cut is likely to benefit small-cap tech and biotech firms that rely on borrowing for future growth, as lower borrowing costs can enhance their equity performance [1]. - Active investing strategies are positioned to identify and capitalize on these opportunities more effectively than passive funds, which may lack the adaptability and fundamental research focus [1]. Group 2: Impact on Fixed Income - In the fixed income sector, active investing is highlighted as having a significant advantage over passive strategies, particularly in maintaining bond allocations amid changing market conditions [2]. - Active managers can utilize fundamental research to pinpoint standout bonds as the yield curve shifts, allowing for better performance in a rate-cut environment [2]. Group 3: Active ETFs - Active ETFs, such as the T. Rowe Price Capital Appreciation Equity ETF (TCAF) and the T. Rowe Price QM U.S. Bond ETF (TAGG), provide tax-efficient and transparent investment vehicles for those seeking active management solutions [3]. - The recent Fed rate cut presents opportunities for active investing, reinforcing the value of these investment tools [3].

Market Analysis & Investment Strategies - Stocks In Translation discusses active versus passive investing strategies [1] - The podcast aims to provide information for making informed trading decisions [1] Housing Market - First-time homebuyers account for only 24% of all home purchases [1] Cryptocurrency Market - The podcast considers the possibilities of a crash in the crypto market [1] Podcast Overview - Stocks In Translation cuts through market noise to provide valuable information twice a week [1] - The podcast is available on Apple Podcasts, Spotify, and other platforms [1] - Yahoo Finance provides resources including stock data, news, and portfolio management tools [1]