Brad here. When interest rates in the overnight lending market (known as the repo market) spiked in September, there was a real fear that it was a sign of something much worse. Commonwealth has been following this development closely, and recently we’ve been receiving another wave of questions. Nick Follett, manager of fixed income on our Investment Management and Research team, is here to explain what has happened since the spike and whether the risks are still real. Spoiler alert—they are not. Over to you, Nick!

Brad here. One of the major discussions we have internally is how to allocate investments, with one of the biggest open questions being whether growth or value will do better going forward. Here is a detailed discussion of that by Chris Fasciano, a portfolio manager on Commonwealth’s Investment Management and Research team. Our internal asset management team stewards more than $7 billion in client assets, and this is a rare chance to pull back the curtain and listen to the discussion. Over to you, Chris!

Last week, a reader had an interesting question in response to the Homer Simpson economic video. He wondered, given the number of jobs that Homer Simpson has had and how compensation has changed over time, is there a good analysis of income versus inflation? I didn’t know of any such analysis, so I decided to come up with one. Since much of the analysis around this question is less than clear (to be frank), I also decided to use it as a primer on how to read through economic statistics. As always, caveat emptor!

As I do every month, it’s time to take a look back at what happened in the previous one and what it could mean going forward. With the start of a new year, we have a lot to cover.

Brad here. Today, Rob Swanke, an analyst with Commonwealth’s Investment Management and Research team, shares his insights. Enjoy!

It’s 2020, the beginning of a presidential election year. As the months unfold, the election will likely become the primary market risk to worry about for many people. Democratic primary voting will begin in February with the Iowa caucuses, but only 4 percent of the delegates will be chosen that month. The party’s direction won’t begin to unfold until March 3, when 34 percent of the delegates will be chosen by 14 states. But we still won’t have clarity at that point, as delegates are distributed proportionally for each state by the Democratic Party. With several candidates polling in the double digits, a lot of uncertainty regarding the Democratic nominee may exist right up to the July convention. Although the bull market has lasted more than a decade, will valuations keep moving higher in this uncertain political climate?

The news this morning that a top Iranian commander was killed in a U.S. drone strike sent global markets reeling. According to news reports, Iran is now vowing to retaliate, which means terrorism and cyberattacks are likely. Here in the U.S., apparently, Congress was not notified of the strike ahead of time. The heightened risk factors we must now consider include increased domestic political dysfunction, a rising risk of military action (either by us or against us in an already troubled area), and a probable disruption of the oil markets.

I suspect not too much work will get done today, at least in my house, so let’s have some fun. Below are links to some of my favorite economic and investing videos. In true economist fashion, I have categorized them appropriately. Note that I may not agree with the content—especially for the funny ones! Start at the top.

Recently, along with some very dynamic colleagues and friends from Commonwealth Financial Network, I had the privilege of attending the Massachusetts Conference for Women. Held in Boston over a packed two days in December, it was the largest women’s conference in the country, boasting more than 13,000 attendees. Here, Giovanna Zaffina and I would like to share our experiences and thoughts.

I have been thinking a lot about the next decade. As we enter 2020, we know only a couple of things, but we should keep them in mind as we plan ahead.

Brad here. At this time of year, we hear a lot about seasonal effects, with the Santa Claus rally at the head of the list. Today, Jim McAllister, director of equity research, takes a look at how much is fiction and how much is fact when it comes to the Santa Claus rally. Thanks, Jim!