Results 5,051–5,100 of 5,254 found.
Worry of the Dollar?s Collapse Is Overblown
by Frank Wei, CFA,
The fundamentals for the dollar could not be worse. The U.S. economy has continued to struggle, the federal deficit has skyrocketed, and the government has adopted super-easing monetary policies and aggressive fiscal spending. But anxiety over a potential dollar collapse is overblown. A gradual decline appears more likely, according to Frank Wei of FundQuest in this guest contribution.
Leveraged Index Mutual Funds Evolve to Meet Market Needs
by Direxion Funds,
Until recently, leveraged index funds had daily objectives, rebalancing their leverage at the end of each trading day in order to match their stated exposure rate. This characteristic made it necessary for investors to monitor them daily in order to both track and manage the exposure rates applied to their investments in the funds. Direxion Funds has released the first monthly-rebalanced leveraged funds, and they explain how they operate. We thank them for their sponsorship.
Guns N' Leeches
by Mariko Gordon,
No investor likes to see poor performance. But not all "bad returns" - even those of equal magnitude - are treated equally. In this guest contribution, Mariko Gordon takes a look at two common forms of underperformance and explains why one is often viewed much less favorably than the other.
Stay the Course or Plot Another?
Is it reasonable for investors' objectives to change along with major fluctuations in their wealth? In these instances, sticking with the current portfolio may not be the best option - even for long-term investors. In this guest contribution, Ted Ponko of Klein Decisions argues advisors need a reliable way to determine when to stay the course and when to plot another.
The ?V? Points Downward
Long-term equity investors face a critical juncture. They can believe a V-shaped economic recovery is imminent, if not underway, and valuations for broad-based equity indexes properly reflect an end to the "decrepit decade" of return-less risk in US markets. Or they can believe true economic recovery - growth, not just stability - is still a long way off and US equity valuations are in bubble territory, not reflective of the rough terrain ahead. We provide our thoughts.
Letters to the Editor ? Fama-French and the Active-Passive Debate Redux
Last week, two active management proponents responded to our article, Luck vs. Skill in Mutual Fund Alpha Estimates, on the latest research from Ken French and Gene Fama. This week, a reader takes on one of those responses and Michael Edesess, author of our article, says the debate between active and passive management is really a sidelight to the real issue - which is excessive fees.
Managing Downside Risk in Retirement Planning
Boston University professor Zvi Bodie advocates a retirement investment strategy that offers investors some of the upside potential in equities tempered with downside protection against bear markets and a low-risk inflation hedge via heavy allocation to TIPS. Geoff Considine examines Bodie's strategy and shows that it will work very effectively, including in a bear market like the one just experienced.
Letter to the Editor - Leveraged and Inverse ETFs
Responding to Tom Lydon's article last week, In Defense of Leveraged and Inverse ETFs, a reader says leveraged and inverse ETFs are not aspirins to be sold over the counter; instead, they are prescription drugs that may cause serious adverse effects and thus warrant a black-box warning.
Asset Allocation Perspective from American Century Investments
Scott Wittman,Senior Vice President, Asset Allocation at American Century Investments reflects on the one-year anniversary of the near-meltdown by our financial system and provides perspective on what kind of recovery may be coming. We thank American Century Investments for their sponsorship.
Don?t be Misled by Morningstar?s Box Score Results
Morningstar has published its latest Box Score Results, showing the performance of active managers across each of the nine style boxes. We report these results, along with those of another study by William Thatcher of the Hammond Group, which explains why Morningstar's results can be highly misleading.
Three Ways to Inspire Clients
Given the beating their portfolios have taken and the general mood of skepticism, often your goal when meeting with clients is to have them leave feeling more optimistic and upbeat about their future prospects and in particular about your role as their advisor. Dan Richards offers three ways to uplift your clients' spirits, while confronting today's crucial issues and building your credibility.
Life in and after the NBA Financial Planning for Professional Athletes
During a 13-year career that began in 1987, Chris Dudley was called on to defend some of the greatest centers in NBA history - among them Shaquille O'Neal, Robert Parish, and David Robinson. While developing a reputation as an exceptional shot-blocker and rebounder, Dudley also devoted time to preparing for his post-basketball career - as a financial advisor - and he shares with us his thoughts about financial planning for the professional athlete.
Finance After Auschwitz
by Michael Lewitt,
We are again privileged to provide an excerpt from Michael Lewitt's HCM Market Letter. In this installment, Finance After Auschwitz, Lewitt examines the dangers posed by Iran, whether the market is overvalued, the future of securitization, and what should be done about the private equity industry.
Marketing with LinkedIn: Create Your Own Group
Participating in various groups is one way you can utilize LinkedIn as a marketing tool, but for the more ambitious marketers, having your own group offers even greater opportunities. Kristen Luke offers step-by-step instructions to create your own group.
Advice as Art
Giving advice to clients is a delicate art, like creating a beautiful symphony from a group of musical instruments. In this guest contribution, advisor Jason Branning explains how you can offer advice to clients that transcends mere projections or proposals, and becomes something more.
In Defense of Leveraged and Inverse ETFs
by Tom Lydon,
Leveraged and inverse exchange traded funds (ETFs) have been a lightning rod for controversy. Reasonable concerns underpin criticism of them, but these funds are largely misunderstood. Tom Lydon sets the record straight and identifies those investors for whom leveraged and inverse funds are appropriate.
Work Smart by Building Thinking Time into Your Day
Consistently committing the time to think critically can lead to a dramatic boost in overall productivity. So how do we go about ensuring we're "working smart"? Dan Richards offers five opportunities to build thinking time into your business - you can do this annually, quarterly, monthly, weekly ... or even daily.
Michael Moore ? Take This!
Vitaliy Katsenelson doesn't do movie reviews, and he hasn't watched Michael Moore's previous movies. But when a Denver Post reporter invited him to a private showing of Moore's latest flick, "Capitalism: a Love Story," its subject matter enticed the Russian-born author to check it out, and he has a few choice words for Moore and his anti-capitalistic views.
Seven Ways to Reach Prospects in the New Normal
by Nancy Opiela,
Extravagance is out and frugality is in. Finding happiness in what we can afford is what sells. With many investors implicitly or explicitly bracing for the New Normal and lower returns from the capital markets, advisors need to rethink their marketing programs to be consistent with their clients' tempered expectations.
Five Secrets to Effective Communication
Advisors may think they are excellent communicators, but in Beverly Flaxington's experience many have a lot to learn. Whether they are developing new business, engaging with centers of influence, introducing themselves to new prospects, or simply building existing relationships, five key techniques can improve their communication skills.
Luck vs. Skill in Mutual Fund Alpha Estimates
by Michael Edesess,
A long-standing research thread has shown that professionally-managed portfolio returns strongly resemble a random walk about the market average. This is interpreted to mean that professional money managers cannot predictably beat the market. A new study by Eugene Fama and Kenneth French uses a novel statistical approach to add evidence to that record- but with an important caveat.
A Tale of Two Depressions: October 2009 Update
Barry Eichengreen and Kevin H. O'Rourke update their article, "A Tale of Two Depressions," and report that global industrial production shows clear signs of recovery, but weak consumer spending in the US may prevent a rapid recovery.
Green Shoots and Head Fakes in Housing
The greenest of all green shoots - the recent rise in housing prices - is little more than a mirage, according to Whitney Tilson, founder and CEO of T2 Partners, a New York-based hedge fund and mutual fund manager. "It's likely the news of home price stabilization will turn out to be the mother of all head fakes," Tilson said. He spoke to a group of financial analysts in Boston last week.
SpeedReading® People for More Productive Client Relationships
by Paul D. Tieger,
In our relationship-driven industry, it is critical to understand how to best communicate with each client and prospect. Most people assume that people want to be communicated with in the ways that they prefer. However, as Paul Tieger explains in this guest contribution, different personality types require information to be communicated differently.
Analyst Viewpoints: Market Perspectives from Janus' Seven Global Sector Teams
The retail, financial and healthcare sectors are critical drivers of economic recovery. The analysts at Janus examine the latest trends in these industries, and assess which companies are best positioned to capitalize on opportunities in both the short and long term. We thank Janus for their sponsorship.
A Quarter-End Letter to Send Clients
Last fall, Dan Richards began posting quarter-end letters that advisors could adapt for their own use. Many advisors have told him that they have received an outstanding response to the letters they sent as a result, and Dan provides a template for a third-quarter letter.
Retailers Face the New Frugality
Whether they sell high-end designer clothing or tractors and pet food, retailers across the country are girding for leaner times. Consumer spending has dropped to 10% below its historical trend line, creating a landscape with far too many stores and far too much merchandise for consumers' thinning wallets to support. Along with the CEOs of Fortune 500 retailers, we attended a conference in New York last week looking at trends in consumer behavior, and we file our report.
Turning Intention into Action
Dan Richards' recent article, A Wakeup Call for Advisors: Turmoil at the Top of the Market, drew by far the largest response of any his articles in the last year and a half. Focusing on a number of recent articles on affluent investors leaving existing advisors, the article laid out five strategies to respond to this trend. Of course, laying out the strategies is the easy part - it's acting on them that's tough - and Dan offers suggestions for advisors looking for a way to prioritize their action plan.
Strategic and Tactical Perspectives on Gold
There are good reasons for investors to maintain a long-term strategic allocation to gold, which has clear, positive portfolio benefits (due to low correlation to other asset classes). That said, gold is in an historic run-up in value and has been generating unsustainably high returns. Because of its high price and rising volatility, Geoff Considine argues there is significant tactical risk in gold.
Social Networking is Still Networking
Why do some expect that social networking should produce results in a matter of a couple of months? It is still networking and should be handled in the same manner. As Kristen Luke explains, merely advertising your business may work if you are a restaurant or hotel, but it doesn't work in a relationship-oriented business like financial advising.
Taste Testing Investment Style Sausages
by Ron Surz,
Equity indexes, like those offered by Russell and S&P are the investment-world equivalent of sausages - chopped up pieces of meat in tightly wrapped packages. Most shoppers buy sausages based on brand name, as do investors when they choose their benchmarks. In this guest contribution, Ron Surz dissects these index sausages and explains the real differences in their ingredients.
A Tale of Two Investors
by Brian Murphy,
Just as Dickens contrasted the fortunes and misfortunes in England and France in his classic novel, A Tale of Two Cities, today the divergence is painfully apparent in those who plan to accumulate wealth for their retirement and those who seek excess returns in their portfolios. In this guest contribution, advisor Brian Murphy tells the tale of two clients - one who aggressively sought alpha and the other who passively built retirement wealth.
The Case Against Inflation
Investors should expect extremely low inflation - just slightly above zero - for the indefinite future, according to Connie Everson, the Managing Director and co-founder of the Capital Markets Outlook Group, a Boston-based economic consulting firm that serves institutional investors throughout the world. Everson delivered her remarks to an audience of financial analysts in Boston last Thursday.
Interview: Jeff Mortimer, CIO of Charles Schwab Investment Management
Jeff Mortimer is Senior Vice President and Chief Investment Officer-Charles Schwab Investment Management, Inc. (CSIM). Mortimer has overall responsibility for approximately $240 billion in Schwab Funds and managed accounts. We spoke with Mortimer two weeks ago about the economy and why he believes the market has already priced in the bad news trumpeted by the media.
The Financial Market Solution to Carbon Emissions
While health care remains the hot topic on Capitol Hill, another piece of legislation is poised to gain similar attention. Regulating carbon emissions to address the threat of global warning is a top priority of the Obama administration, and its favored approach is to create a "cap-and-trade" market. John Parsons, an expert in the field, explains how this financial market solution might work.
Will Momentum Move Your Portfolio?
Instead of mixing value and growth stocks, investors would be far better served by combining value and momentum stocks, according to Cliff Asness, co-founder and Managing Principal of AQR Management. In fact, momentum has "kicked butt" when compared to growth over the last 80 years, Asness said.
Disaster Management, The Green Beret and Lamaze Way
by Mariko Gordon,
Few of us respond as easily or effectively as we might like in the face of disaster. In this guest contribution, Mariko Gordon takes a look at why, and offers three things to keep in mind the next time you're in the midst of a crisis, financial or otherwise.
Results 5,051–5,100 of 5,254 found.