For years now, inflation has been a stubborn challenge for the consumer and for the stock market. Ever since the pandemic, inflationary pressures have defined both the economic and political narratives challenging investors. The Fed's decision to cut rates, combined with reduced availability of official inflation data, has heightened inflation risk for investors. These ETFs can help prepare for inflation uncertainty. In the months ahead, the lack of official inflation data may throw a wrench in many market ...

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].

Listen and subscribe to Stocks In Translation on Apple Podcasts, Spotify, or wherever you find your favorite podcast. In this episode of Stocks in Translation, John Grace, Investor’s Advantage Corp founder and president, joins host Jared Blikre and Senior Reporter Allie Canal to discuss active versus passive investing, the state of the housing market, with first-time homebuyers making up only 24% of all home purchases, and the possibilities of a crash in the crypto market. Twice a week, Stocks In Translatio ...

Core Insights - Healthcare innovation and biotechnology are currently highlighted as promising investment areas, particularly following September's rate cut which has improved prospects for R&D and new drug discoveries driven by AI [1] - Active investing in biotech may outperform passive strategies by leveraging deep analyst expertise to identify firms with strong growth potential, especially in a climate of rising equity uncertainty [1][4] Investment Opportunities - The biotechnology sector has evolved significantly since the mapping of the human genome, with four major modalities—gene therapy, gene editing, oligonucleotide therapies, and targeted protein degradation—driving new drug discoveries [2][3] - Rate cuts facilitate easier borrowing for R&D funding, which is crucial before drug revenues materialize, and also stimulate M&A activity that benefits biotech investments [4] Performance Metrics - The S&P Biotechnology Select Industry Index experienced a decline of approximately 10% in its trailing 12-month value as of June 30, yet the top 10 firms within the index achieved average returns of 145% [4] - Active healthcare and biotech ETFs, such as the T. Rowe Price Health Care ETF (TMED), focus on high-performing companies while avoiding underperformers, charging a fee of 44 basis points [4]

Group 1 - The article does not provide any specific content related to a company or industry [1]