Income Fund Update: Focused on Finding Opportunities in Today’s Markets
Looking across the global opportunity set, we see potential for attractive yield, though uncertainties surrounding the global recovery suggest this is a time to be cautious.
Q&A: Communicating and Building Trust with Clients In A Virtual World
Building trust with clients and prospects is the most important way to have lasting relationships. Find out what research shows on how people assess whether you are someone they can trust. Learn the important kinds of verbal communication and body language that open people to trusting you, as well as techniques that will help you better understand clients. Hear how other advisors have established their credibility and trust with clients. Get advice on how to conduct virtual meetings effectively. Ask questions about how to communicate with difficult clients and change the direction of those relationships.
Implementing a GBWM Framework with the SEI American Funds® Strategies
A true goals-based wealth management (GBWM) approach can help you control for behavioral biases — both yours and your clients’ — and deliver desired financial outcomes for your clients. Coaching clients throughout your relationship can help combat emotional decision-making and maximize the likelihood of achieving success. Join SEI and Capital Group® for this session which will:
- Teach attendees about goals based wealth management
- Show attendees how to implement a GBWM approach by breaking down the implementation process into its core components
- Walk attendees through: identifying clients’ objectives, choosing alternate allocation approaches, the benefits of multiple investment styles and implementation vehicles, and personalization to help you help your clients meet their investment goals
- Introduce the SEI American Funds® Strategies
John, J., and Chris will be available to answer your questions following the presentation.
Diversification Is Key and the Only Free Lunch in These Markets
As both traditional and alternative asset markets descend into turmoil this month, it’s important to remember the inherent strengths of a diversified portfolio. A market rout always causes correlation to go to 1 across virtually all assets as investors flee to the perceived safety of cash.
Challenging the Conventional Wisdom about Target Date Funds
Advisor Perspectives recently surveyed over 1,000 advisors to learn how they evaluate target-date funds. Bob Huebscher, its CEO, will present some of the key findings from that research, which showed that advisors are willing to accept a significant degree of risk in target-date allocations and have a preference for active management.
The team from Dimensional Fund Advisors will comment on those findings and present its own research on the appropriate role of target-date funds in client portfolios, and how advisors should properly assess the characteristics of those products.
In this webinar, you will learn:
- What most advisors consider to be an appropriate risk exposure in target-date funds;
- How to properly assess the glide path of a target-date fund;
- How to consider target-date funds alongside existing client asset allocations; and
- Best practices for discussing target-date funds with clients.
Gulf Oil – A Lucky Gift from Boone Pickens
Investment results are easily measured on an absolute basis. Because they are so easily measured, academics, financial advisors, asset allocators, consultants, individuals and a host of others have devoted a lifetime to scrutinizing the results of others.
Thank You John Neff
Many times over the past twenty years we have discussed our mentors, those great investors who have influenced our thoughts, opinions, methods, techniques, stock selection and portfolio construction. We’ve shared the words and writings of Benjamin Graham, John Templeton, Marty Whitman, Bernard Baruch, Philip Fisher and so many others who deserve our thanks.
AI: Artificial Intelligence or Artificial Idiocy?
It seems that we are at a point in time where a large portion of investors believe that machines can replace human intelligence in the field of portfolio management, resulting in higher risk adjusted returns at a substantially lower cost.
For Individual Investors, Risk is Not Having Enough Cash to Spend When Needed
There have been many new approaches to portfolio management. As all professional advisors should, I take the time to explore these new approaches. Yet it seems that each new approach is simply a minor change to the long standing acceptance that risk is the volatility of current asset prices.
Economic Laws Cannot Be Depended Upon if We Disregard Psychology
Alma Volker scribbled the note, quoted above, in the margin of a 1911 economics textbook, Outlines of Economics, written by Vassar College Professor Herbert Elmer Mills. Later her son, Paul Volker, who has served six presidents over his long career in public service, shared his regret of never discussing economics with his Mom in his recent book Keeping At It.
Want to See the Future of Investment Advice? Visit Your Local Auto Parts Store
Old Big Red sprung a leak a while back. Many of you are familiar with Big Red, but there are a few of you who might need an introduction. Big Red is my 18-year-old Chevy Silverado 2500 HD. I realize this may not be the type of vehicle driven by the majority of bankers, money managers, financial advisors, or brokers...
Asset Allocation for Cautious Investors
In today’s world, where politics take up the majority of news cycles and there is an ongoing war of words between the two major political parties, I decided for this letter to replace our often used phrase “conservative investor” with “cautious investor.
Planning Advice from Nobel Laureate Kenneth Arrow
The boring truth of financial analysis and portfolio management is that the majority of our days are spent visiting with clients, reading, reading, reading, and when required, making decisions. Years ago it would have included quite a bit of time on a calculator, but thanks to the low cost of computers and software, most of the number crunching can now be completed with the push of button.
Stories from a Motorcycle Road Trip
What we can learn about the current state of our economy by traveling and visiting with others outside of our home turf is amazing. For many of us in the investment business, our view of the economy is easily warped by statistical reports and interpretations prepared by professional economists.
Boeing, from Purchase to Sale: A Value Investor’s Exercise of Patience, Discipline and Risk Reduct
From the time I was a little tyke, I knew the benefits of having cash available to make a purchase. With it I could easily buy something under very favorable terms when others were in desperate need of that cash.
The Adaptive Markets Hypothesis: A Step in the Right Direction
We have all been taught to “play by the rules” since the very beginning of our lives. Our parents did the best they could to teach us rules of proper behavior. That list of rules continued to grow longer the older we got, governing our day to day interactions with others.
Investment Wisdom or Just Grumpy Old Men?
In one of our meetings, Justin asked a question of me. He said, “Why is it that the only investment managers telling people to be careful are old timers like you? Jeremy Grantham of GMO, whose seven year forecast is negative in all asset classes other than emerging markets. Howard Marks, whose most recent memo “There They Go Again…Again” strongly suggests people be cautious in their investing today.
Don’t Lose Your Position – It’s a Bull Market
Most of us believe that experience in an occupation, measured by time spent on the job, leads to higher productivity for the employer and greater income for the employee. I agree that this belief holds true for most occupations.
Dr. Hendrik Bessembinder Asks the Question, “Do Stocks Outperform Treasury Bills?”
Our lives often seem to be dominated by numbers. Social Security numbers, drivers’ license numbers, account numbers… an unlimited number of 0’s and 1’s residing in thousands of databases, many of which are designed to keep track of our every move. Most of these numbers used to identify us are not necessarily wanted.
What Will the Fed’s Balance Sheet Changes Mean for Agency MBS?
The Federal Reserve’s balance sheet has been grabbing headlines recently, and with good reason: the Fed’s three massive bond buying programs, used to stimulate the US economy during and after the 2008 financial crisis, have left the central bank holding trillions of dollars worth of Treasury and agency mortgage-backed securities (MBS).
A Lesson on Black-Box Investing: Kurt Lindner and the Lindner Dividend Fund
The CFA Institute’s second quarter 2017 Financial Analysts Journal included a research article penned by Martijn Cremers, professor of finance at the University of Notre Dame, entitled “Active Share and the Three Pillars of Active Management: Skill, Conviction, and Opportunity.”
Our Five Year Forecast for the S&P 500
The vast majority of businesses manage their operations according to a plan. That plan may be as simple as an entrepreneur writing down a few goals on a napkin, or as complex as a massive set of instructions covering the day to day, month to month, year by year, or decade by decade actions required to maximize profits.
Should Investors Let the Speculators Play Their Games Today?
Now that I am an honored member of the “gray-beard club” of investment managers, I can reminisce fondly back to the time when I first entered this business and began learning my trade with the utmost confidence of the “cute, fuzzy, teddy bear” youngster I was.
The New World of Portfolio Management for Retirees
One of the greatest strengths of American capitalism is how it addresses the problems faced by its citizens. The greater the problem, and the more lives impacted by the problem, the more entrepreneurs, academics and government officials there are seeking solutions.
The Risk Reduction Characteristic of Dividends
Three decades ago Sir John Templeton provided 22 rules for investment success to William Proctor who then shared these rules in his book, The Templeton Touch. Templeton’s first rule was: “For all long-term investors, there is only one objective – maximum total real return after taxes.”
Changing an Industry through Regulation: The Department of Labor’s Conflict of Interest Rule
We all know that our government and its agencies are very good at reacting to a real or perceived crisis with new laws and regulations designed to reduce the chances of another similar event occurring. The most recent example of this concerns the cost and availability of health care.