The Keys to Successful Tactical Management
Terri Spath is chief investment officer at Sierra Investment Management. She is responsible for market and economic analysis, portfolio allocation, investment strategy and building client solutions. In this interview, she explains how tactical management differs from market timing, and why it will excel in the current environment.
Gundlach Disagrees with Mnuchin and Powell
On inflation and Fed policy, Jeffrey Gundlach disagreed with comments made by Treasury Secretary Steven Mnuchin and Fed Chairman Jerome Powell. But Gundlach’s views were in line with the consensus on those key issues – inflation will not spike dramatically higher and the Fed will continue with its planned rate hikes.
A New Platform that Offers Insurance Products to Fee-Only Advisors
David Lau is the founder and CEO of DPL Financial Partners, a firm focused on the distribution of commission-free insurance products geared toward the RIA and fee-based advisor channel. In this interview, he discusses his suite of products and related services.
Gregg Fisher – The Advantage of Multi-Factor Investing
Gregg S. Fisher founded Gerstein Fisher in 1993 based on a vision of offering a quantitative investment management approach grounded in sound economic theory and more efficiently implemented through technology. In this interview, he discusses the virtues of multi-factor investing and which factors are attractive in today’s market.
The Dishonest Claims about Healthcare
A recent paper from the World Economic Forum – the group that runs the Davos conference – stated that Americans pay more for healthcare than other countries but get inferior outcomes. That rhetoric was amplified by Warren Buffett, when he called health care costs a “hungry tapeworm” eating into the American economy. But, before you assume that Americans are not getting good value for their health care dollars, let’s look at the data.
Our Survey Results: The Asset Managers Advisors Recommend to Their Peers
We recently surveyed over 1,500 advisors to see which asset managers they are most likely to recommend to their peers. Here are the fund companies and ETF providers that came out on top in seven different categories.
Jeremy Siegel’s Predictions for 2018
Jeremy Siegel almost never gives a one-year forecast for stocks, but last week he predicted that U.S. equities will end the year with gains of as much as 10%. That may seem meager for investors who have benefited from double-digit gains in seven of the last nine years, but Siegel said this year will be far better for stocks than it will be for bonds.
Mark Yusko’s 10 Surprises for 2018
Did you know that etherium was the best-performing asset in 2017, up 9,312%? Among those who hope to identify the non-consensus outperformers in 2018 is Mark Yusko. In the tradition of Byron Wien, he identified his 10 biggest surprises for 2018.
Dylan Grice: Three Untrue “Truths” in Our Age of Disruption
Challenging conventional wisdom is a mainstay of financial conference speakers. I have seen few do so as effectively as Dylan Grice, who dismissed three mainstays of accepted beliefs, most notably that the value premium will deliver risk-adjusted outperformance.
Albert Edwards: The Trigger for the Next Market Correction
Fear of overvaluation – particularly for U.S. equities – has driven far too many investors to miss the strong bull market. For market bears to be proven right, according to Albert Edwards, it will take one or more of several triggers.
Investment Grade – Why Now?
The Osterweis Total Return Fund (OSTRX) seeks to preserve capital and attain long-term total returns through a combination of current income and moderate capital appreciation. The fund invests primarily in investment-grade securities and employs tactical shifts in sector allocation, interest rate/yield curve risk and credit quality, attempting to capture return across credit, interest rate and volatility cycles. Its inception date was 12/30/16 and it is managed by lead manager Eddy Vataru.
Gundlach’s Forecast for 2018
Emerging markets and commodities present the best investment opportunities for this year, according to Jeffrey Gundlach. Those to avoid include the S&P 500, which he claims will show a loss for 2018. His larger warning was that most of the good news on the economic front is already priced into the capital markets.
Advisors to Increase Allocations to Actively Managed Non-U.S. Equity Funds
Over the next six months, 34% of financial advisors will be increasing their allocations to actively managed non-U.S. equity funds by more than 3%. Advisor Perspectives obtained this data from a survey conducted over the last month, for which it received responses from 778 advisors.
Jeremy Grantham on Profit Margins and American Prosperity
Have profit margins risen to a permanently higher plateau? Are average Americans better off than they were a generation ago? I had the opportunity to discuss those questions, which are centrally important to investing and economic policy, with Jeremy Grantham a couple of weeks ago.
The Ten Best Practice-Management Articles You Probably Missed
Great articles don’t always get the readership they deserve. We’ve posted the 10 most-widely read practice-management articles for the past year. Below are another 10 that you might have missed, but I believe merit reading.
Jeremy Grantham and Lucas White on Climate-Change Investing
Jeremy Grantham co-founded GMO in 1977 and serves as the firm’s chief investment strategist. Lucas White is the lead portfolio manager for the GMO Climate Change Strategy. In this interview, Jeremy and Lucas discus the risks and opportunities in climate-change-focused investing.
How North Korea Evades Sanctions
If sanctions against a target regime can be thought of as antibiotics, then North Korea has largely become drug-resistant. Indeed, North Korea is exhibiting “superbug” traits, increasingly impervious to sanctions, according to John Park.
Gundlach: The Goldilocks Era is Over
Easy monetary policies during the post-crisis period have propelled equity prices higher and driven bond yields lower. But as central banks reverse their quantitative easing (QE) and raise rates, this “Goldilocks era” will come to an end, according to Jeffrey Gundlach.
Six Themes That Will Drive the Next Five Years
Those looking for an optimistic forecast for U.S. equities can turn to Northern Trust. Bob Browne, its chief investment officer, identified six themes that will drive the capital markets over the next five years. Taken together, they translate to 5.9% annual returns for U.S. stocks over that period, which includes 2017.
Neil Hennessy – The Opportunities in Mid-Cap and Japanese Stocks
Neil Hennessy is a portfolio manager and chief investment officer at Hennessy Funds. In this interview, he discusses the compelling opportunities in mid-cap and Japanese stocks, and what RIAs should be doing in advance of the next market correction.
Albert Edwards – The Fed Credit Bubble and What It Will Do to the Markets
For nearly 25 years, the EU has held together despite challenges from bankrupt institutions, separatist movements and members with widely divergent economic prospects. But that cohesion is being tested, according to Albert Edwards, by countries that are losing their competitiveness. But his greater concern is the impact the Fed-induced credit bubble will have on the markets.
Should You Invest with the Fund Manager of the Year?
Morningstar’s Fund Manager of the Year is one of the most coveted awards in the mutual fund industry. Indeed, fund companies devote enormous resources to promoting award recipients. But should advisors invest their clients’ funds with those winners?
Tony Soprano, Going to the Movies and Investment Returns
Should you worry if organized crime has infiltrated the boards of the companies you own? Can you learn anything about how your investments will perform based on movie theater receipts? Two recent research studies answer those questions.
Keynesian Spending Does Not Lead to Higher Debt
In the 80 years since Keynes published his General Theory, few questions have been as controversial as whether or not government spending can stimulate a weak economy. New research shows that stimulus spending indeed does work, even for countries facing high debt burdens, unemployment and inflation.
Vanguard’s Chief Economist – Automation is Not Killing Jobs
Rapid technological advances are transforming the global workplace. But fears that automation will permanently destroy American jobs are misplaced, according to Joe Davis. Instead, the jobs that require “uniquely human” skills will proliferate, Davis said.
Behind the Success of a Top-Performing International Fund
Greg Dunn is a portfolio manager for Thornburg Investment Management. He manages the Thornburg International Growth Fund (TINGX), which has outperformed its benchmark by 540 basis points over the last 10 years. In this interview, he discussed his investment philosophy and what drove that outperformance. Please visit Thornburg Investment Management at booth 123 at Schwab IMPACT.
The Case for Owning Gold
Thomas Kertsos is a portfolio manager and senior research analyst at First Eagle Investment Management. He is the manager of the First Eagle Gold Fund (SGGSX), which, as of June 30, has returned 5.37% since its inception, on 8/31/93. That is 645 basis points better than its benchmark, the FTSE Gold Mines Index (-1.08%).
Navigating the High-Yield Market
Andrew Susser manages the MainStay High Yield Corporate Bond Fund (MHCAX). Over the last 15 years, the fund has ranked in the 12th percentile of its Morningstar peer group; its annualized return was 8.45%, 395 basis points ahead of the AGG and 95 basis points greater than its peer-group average. In this interview, he discusses the opportunities in the high-yield market.
Bob Rodriguez – We are Witnessing the Development of a “Perfect Storm”
Bob Rodriguez, FPA’s now-retired portfolio manager, earned many awards and distinctions during his 33-year career. In this interview, he talks about the role of the Fed in the price-setting mechanism. “When the markets finally do break, as they always have historically, ETFs and index funds will be destabilizing influences,” he says. Please visit FPA Advisors at booth 123 at Schwab IMPACT.
Apply for the Focus Group on Active Management
The purpose of this focus group is to gather advisors’ observations on actively managed US equity funds. This focus group will take place as a private APViewpoint conversation.
Advisors who are not part of the focus group will not be able to view this conversation, and advisors who are part of the focus group will not see the responses of the other participants.
If you are selected to participate in this focus group, you will be required to thoughtfully answer a series of questions, at your convenience, over a seven-day period. It will take approximately an hour to answer the questions. At the completion of the seven-day period, Advisor Perspectives will pay you $100, either to your PayPal account or as an Amazon gift card (your choice). Alternatively, you may designate that the $100 be donated to one of four charities: the American Red Cross, the USO, the Foundation for Financial Planning or the Jimmy Fund (a cancer-research organization).
To participate in this focus group, you must meet the following criteria:
- Be an RIA or dual-registered advisor;
- Have at least $250 million in assets under management (AUM);
- Be involved in your firm’s selection of mutual funds for client portfolios;
- Your firm must have at least a 10% allocation to actively managed US equity funds; and
- Not plan to decrease this allocation in the next six months.
Join an On-line Focus Group on Active Management and Earn $100
An anonymous sponsor is looking for 30 advisors to participate in an online focus group to be hosted on APViewpoint. The purpose of this focus group is to gather advisors’ observations on actively managed US equity funds. This focus group will take place as a private APViewpoint conversation.
The Pension Crisis and the Muni Bond Market
Underfunded pension plans grab the headlines. But that’s not what drives prices in the municipal bond market, according to Tom Doe. It’s the interplay between supply and demand – and right now yields are depressed due to a shortage of high-quality bonds.
How Trump’s Tax Policies Will Affect Subchapter S Corporations
Many wealthy clients, especially owners of closely-held firms, have interests in subchapter-S corporations. The tax policies proposed by the Trump administration will have a significant impact on them, according to Toni Nitti.
Pershing INSITE: Three Views on Alternative Funds
If you’ve attended as many advisor conferences as I have, you know that panel discussions featuring speakers whose firms have booths in the exhibit hall are rarely more than a “pitch fest” – an opportunity for panelists to promote their firms’ strategies. However, a panel on alternative investments at the Pershing conference last week was an exception.
Pershing INSITE: Jack Lew’s Warning: “Don’t Blow a Hole in the Deficit”
While generally upbeat about global economic prospects, former Treasury Secretary Jack Lew warned policymakers against “blowing a hole in the deficit” by cutting taxes and pursuing aggressive fiscal policy measures.
Harry Markopolos – Who Exposed Madoff – Has Uncovered a New Fraud
Harry Markopolos, the investigator who exposed Madoff, has uncovered a new fraud. The unfunded status of the pension fund of the Boston Transit Authority is $500 million bigger than previously thought. This will have a significant impact on the municipal bond market, especially if it turns out that the problems are endemic among similar pension funds.
Finding Value Globally Across Asset Classes
Jae S. Yoon is the chief investment officer and a portfolio manager at New York Life Investment Management, where he oversees approximately $293 billion in assets. In this interview, he discusses valuations across global asset classes and where he sees the greatest opportunities.
Jack Bogle on the Limits of the Fiduciary Rule and the Future of the Advisory Industry
Speaking two weeks after his 88th birthday, Jack Bogle called the fiduciary rule “silly” and said that financial advisors’ fees are heading lower. Indeed, he said, advisors are destined to charge hourly or retainer fees, like lawyers and accountants.
Jeremy Siegel versus Robert Shiller on Equity Valuations
Should you reduce allocations to U.S. equities given the conventional wisdom that prices are “rich” and “due for a correction”? Jeremy Siegel says no; investors should expect 5% real returns from stocks over the long term. But Robert Shiller thinks that number should be much lower.