Investors added $165.4 billion to U.S.-listed ETFs in January 2026, according to FactSet data. While that marked a cooldown from December’s record $225 billion haul, flows were still well ahead of the $107 billion gathered in January of last year. The most notable development was where the money went. Rather than U.S. stock ETFs leading the charge, international equity ETFs topped the inflow rankings for the month. The category pulled in $68.2 billion, outpacing the $42.7 billion that flowed into U.S. e ...

A meltdown in global metals markets, a sharp pullback in U.S. stocks, and the ongoing collapse in Bitcoin prices suggest President Donald Trump may not be getting the kind of Federal Reserve chair he'... ...

Core Insights - Warren Buffett's investment advice has been influential but some of it may be outdated, suggesting that investors should critically evaluate his recommendations [1] Group 1: Investment Strategies - Buffett recommends allocating 90% of cash into S&P 500 funds and 10% into bonds, which is suitable for passive investors, though bond interest may not keep pace with inflation [2] - Researching and investing in growth stocks can yield significantly higher returns, as evidenced by Nvidia's 1,300% return over five years compared to the S&P 500's 88% [3] Group 2: Derivatives and Options - Buffett has labeled derivatives as "financial weapons of mass destruction," cautioning against speculative trading in short-dated options, which can lead to rapid losses [4] - Long-dated, deep in-the-money call options can enhance portfolio performance if the underlying stocks rally, aligning with long-term investment strategies [5] - An example illustrates that investing in a long-dated, deep-in-the-money call option can allow an investor to control more shares with less initial capital, potentially doubling their investment if the stock price increases significantly [6][7]

Core Viewpoint - The article suggests that as investors enter 2026, there may be a need to reconsider investment strategies, moving away from last year's high-performing tech and AI stocks due to signs of economic slowdown and labor market challenges [2]. Investment Recommendations - **Own: Vanguard Dividend Appreciation ETF** - This ETF focuses on companies that have increased dividends for at least 10 consecutive years, making it a solid choice for dividend growth. It has a low expense ratio of 0.05%, making it cost-effective for investors [5]. - The ETF's market-cap-weighted approach means larger companies dominate the portfolio, which may not align with the dividend-focused strategy, as seen with top holdings like Broadcom, Microsoft, and Apple, which have low yields [6]. - Dividend payers are expected to perform well in 2026 due to potential slower growth and increased market volatility, as they typically provide durable earnings and strong cash flows [7]. - **Own: Vanguard Total Bond Market ETF** - This ETF represents a comprehensive coverage of the U.S. bond market, including various types of bonds, and has an even lower expense ratio of 0.03% [8]. - The article anticipates a market rotation favoring cyclical and defensive sectors, suggesting that bonds and dividend stocks could benefit from a slowdown in U.S. economic growth [8].

Group 1 - The core viewpoint of the article emphasizes a consistent preference for equities over bonds for income over the past decade, which will continue into the new year [1]

Core Viewpoint - The fixed income market is expected to present opportunities in 2026, despite ongoing uncertainties from 2025, with a strong emphasis on bonds as a favorable investment choice [1][2][3]. Market Conditions - In 2025, the capital markets were heavily focused on artificial intelligence (AI), while other factors such as tariffs, geopolitical tensions, and interest rates remained significant [2]. - Monetary policy will continue to be a key consideration for fixed income investors in 2026, with Vanguard advocating for bonds as a primary investment vehicle [2]. Investment Strategy - Vanguard maintains that high-quality bonds, both taxable and municipal, will provide compelling real returns due to higher neutral rates, with expected returns aligning closely with current portfolio income levels [3]. - The Federal Reserve is anticipated to implement only one interest rate cut in 2026, although this outlook is met with skepticism [3]. Bond Market Outlook - Bonds are viewed as a strong investment regardless of central bank actions in 2026, particularly as AI valuations appear inflated, enhancing the attractiveness of bonds [3][4]. - U.S. fixed income is expected to offer diversification benefits, especially in scenarios where AI underperforms, which Vanguard estimates has a 25%-30% probability [4]. ETF Recommendations - The Vanguard Total Bond Market ETF (BND) is recommended for investors seeking comprehensive exposure to the U.S. bond market, potentially comprising the entire 40% allocation in a 60-40 portfolio [4]. - For corporate bond exposure, the Vanguard Total Corporate Bond ETF Shares (VTC) is highlighted as a suitable choice due to tighter credit spreads and improving quality [5]. - The Vanguard Tax-Exempt Bond ETF (VTEB) is suggested for broad municipal bond exposure, capitalizing on yield, credit quality, and tax-free income [6].

Joining us now is Bill Smei. He's the chief investment officer at Sme Capital Management. Bill, it's great to see you again.Welcome. >> Hey, great to be with you. >> Jump in here.You can pick the housing piece first if there's anything in that last discussion that you know you wanted to chime in on. >> Well, I I I don't want to pick on your prior guest too much, but somebody once said if you put all the economists end to end, you'd never get anywhere. >> Understood.But where so do you come down as as in thi ...

Companies across the US and Europe are gearing up to sell a record amount of high-grade bonds in 2026, testing investors’ appetite as yields drift lower https://t.co/PtjJxOmUBx ...

Argentina wants to avoid selling bonds under New York law in January, Economy Minister Luis Caputo said on X, as anticipation for the country’s comeback to international debt markets continues to mount https://t.co/6My2H4FIKW ...

Uzbekistan is introducing new rules that allow companies to pursue dual listings and issue bonds denominated in foreign currencies https://t.co/SoRnCymAOJ ...