Articles

Articles from our Weekly Newsletters

Three Highlights from the MarketCounsel Summit

MarketCounsel’s Summit, held earlier this week in Miami, lived up to its reputation as the “all-star game” of financial advisor conferences, attracting top-level executives from throughout the investment industry. Here are three highlights from Tuesday’s sessions.

Should You “Sell” Volatility?

Academic theory predicts that the volatility implied by the VIX index will be greater than the realized volatility. That difference can be thought of as an insurance premium investors are willing to pay because volatility tends to spike when stocks crash, as in the last bear market. New research confirms that investors can profit from this and that such a strategy is uncorrelated with other traditional sources of return.

The Fund That Isn’t Following the ESG/SRI Herd

In the U.S., between one quarter and one third of all assets managed are done so with an ESG or SRI mandate. Outside the U.S., that percentage is even higher. The Vitium Global Fund, formerly the Vice Fund, buys what most ESG/SRI investors scorn, stocks in the tobacco, alcoholic beverage, gaming and aerospace/defense industries.

Gundlach on the Biggest Risk Facing Bond Investors and the Likely Next President

Fear among bond investors is focused on rising rates, but Jeffrey Gundlach says you should worry about something more sinister. In his webcast yesterday, he also offered his updated 2020 presidential election prediction.

The Best Content to Drive Engagement

Where can I find the best content to drive engagement? I’m not looking to provide market commentary. It would be great if I could customize it with our brand but not have to rewrite any of the content.

Is Now the Time to Overweight Real Estate?

With REITs posting strong returns this year, should investors overweight them?

Will Outsourcing Improve Profit Margins?

I’m not interested in letting most of my staff go. But I am also not up for adding to staff and therefore expenses.

Quiet Your Ego

If your ego is too loud, it stops you from reaching your goals and having a happier, more fulfilling life.

College Planning: Is the ROI in the College or the Major?

Over the course of 20+ years, families have been bamboozled into spending trillions on top-end colleges, while overlooking the fact that it's actually the academic major that is far more important.

A Primer on Retirement Plan Compliance

The purpose of this article is to better acquaint plan sponsors and service providers, like BDs and RIAs, dealing with 401(k) plans with the requirements they must understand and adhere to under ERISA.

The CFP Board Steps Up (Almost)

As we mark the golden anniversary of the creation the undertaking we know call “financial planning,” the CFP Board took a decisive step to enforce a real fiduciary standard by requiring disclosure and informed customer consent of material conflicts.

Was Renaissance’s Success Luck or Skill – And Was It Behind Trump’s Victory?

The hedge fund firm Renaissance Technologies, founded by James Simons, has been an object of amazement, admiration, and envy for years, because of the incredibly high investment returns of its flagship Medallion fund. In a new book, author Gregory Zuckerman explains how Renaissance did it. He also shows how a key Renaissance employee used his riches to get Donald Trump elected president.

The Need for a Circulating Medium

Article I, section 8 of the Constitution states that Congress “shall have the power…to coin money, regulate the value thereof, and of foreign coin.” Let’s look at the historical origin of this clause.

The Impact of FINRA’s Ruling on Advisors as Trustees

FINRA’s proposed rule 3241 seeks to mitigate conflicts of interest that may arise when an advisor assumes certain types of fiduciary obligations for a client. It places addition scrutiny in cases where an advisor serves as the trustee or beneficiary for a client.

Do Long-Only Portfolios Effectively Capture Factor Returns?

Factor performance, as conceived by Fama and French and refined by others, is based on adding the returns of a “long” portfolio of securities that most embody the factors to a “short” portfolio that least represent the factors. But it is common practice for mutual funds and ETFs to use only the long portfolio. New research show that this approach does effectively capture the returns of the underlying factors.