Investors are, or soon will be, opening their year-end statements. If you had a good portion of your portfolio allocated to stocks you most likely had a very good year. If you had a taxable account with a good amount of municipal bond holdings you saw the value of those securities fall over the months of November and December. You may have still done OK but losses are always a bit disconcerting. A chart of the iShares National more ...
If the crippling financial events of 2008 and 2009 proved one thing, it's that investors need to rethink the entire philosophy of "portfolio management."
Today, some of the best-performing managers around the world manage their portfolios more ...
Eric Linser, CFA | Jan. 25, 2010
It is the time of year when market pundits offer predictions for how the coming year will pan out. Such forecasts should always be taken with large grain of salt, given the dynamic nature of markets and the inherent unpredictability of the future. Moreover, successful investing requires flexibility, humility and openness to a range of possible outcomes. This mindset is particularly important in the present environment, given more ...
Investors Pay the Government to Hold Their Debt?
Green Valley Wealth Advisors | Nov. 23, 2009
For the first time in seven decades,Treasury bills are paying no interest while stocks continue to appreciate -- a divergence in US financial markets that might be perilous if Fed Chairman Ben more ...
recovery, interest rates, inflation, Muni bonds, global perspective & more
Eric Linser, CFA | Sept. 21, 2009
Here is our monthly perspective on events and trends affecting the economy, the financial markets, and investment management. First, let's take a look at an interesting chart and commentary from Morgan Stanley's chief European market strategist, Mr. Teun Draaisma, as to how much further the stock market could rally. We'll take a more ...
Phil Diamond, CFA | Sept. 8, 2009
TIPS are much in the news these days and also in the hearts of many investors. Is this the right approach? That depends. If you are looking at TIPS as a long-term hedge against inflation, then TIPS make a lot of sense, nearly all the time. As a tactical move, in anticipation of nearby inflation, we’re not so sure.
Let’s take a step back and look at TIPS before we go forward. TIPS, or Treasury Inflation-Protected more ...
Phil Diamond, CFA | Aug. 17, 2009
Last Friday (August 14th), investors received news that the University of Michigan/Reuters Consumer Sentiment Index fell to 63.2 from 66.0 in July. The expectation was for a gain to 69.0. Surprise! This number likely caused our drop that day. Stocks turned in a very summer performance last week, shifting on an almost daily basis based on news. The recent upward trend is still in force, but it is starting to lose momentum. One more ...
Eric Linser, CFA | Aug. 12, 2009
Here, I show you various charts of multiple asset classes. Take my thoughts to heed and actively implement broader diversification into your portfolios.
Key:
Dow Jones Ind = Dow Jones Industrial Average (US large stock index)
S&P 500 = S&P 500 (US large stock index)
NASDAQ = NASDAQ (US mid-large stock index, no financials)
Russell 2000 = Russell 2000 more ...
I remember an advertisement in the 1980's with GM trying to rekindle the Oldsmobile brand but proclaiming that "It's not your father's Oldsmobile." It obviously didn't work, and in 2004 the last Olds rolled off the assembly line. In a similar vein, the tried-and-true static asset allocation that has been preached for ages of having your investments allocated 60% to stocks (equities) and 40% to bonds (fixed income) has gone the way of Oldsmobile or for that matter, GM.
Well, I think more ...
Green Valley Wealth Advisors | Aug. 11, 2009
It is the story of the tortoise and the hare - one of Aesop's fables - about how a hare was one day ridiculed by a slow-moving tortoise. In response, the tortoise challenged his swift mocker to a race. The hare, confident of winning and having left the tortoise far behind, took a nap. When he awoke, he found that his competitor, crawling slowly and steadily, had already won the race.
There are similar stories more ...
Eric Linser, CFA | July 24, 2009
California Gov. Arnold Schwarzenegger and state lawmakers have negotiated a compromise to close the state's $26 billion + budget deficit, but don’t hold your breath that it will get done easily – it will actually take years to truly close the gap. From the looks of it, it’s mostly accounting gimmicks, deferring expense recognition, delayed implementation of programs, and taking money from cities and counties that truly need more ...
Recently, we were reminded of just how unpredictable the market can be. And while we can't really control the market, we can remember some basic fundamental truths1 that will help us weather any storm.
Twelve fundamental truths of investing
1. Over the long term, stocks have had greater total returns than bonds.
2. Over the long term, bonds have had greater total returns than money market funds.
3. On average, stocks are much riskier than more ...
Eric Linser, CFA | June 15, 2009
With the markets on the right trajectory as of recent, it seems safe to come out of our bunkers again. The rocky start to the year has revealed an almost unprecedented opportunity for investors -- a chance for a fresh start to 2009. After an abysmal start in January and February, March, April and May have rewarded investors with a nice sustained 3-month rally which has brought us back to being flat to up for the year. Just as the more ...
Disclaimer: All articles are for informational purposes only and do not constitute offers/solicitations to sell or purchase any security or investment product or service; this information is provided solely for your personal use and is not intended to be investment advice; all investments are subject to risks, including possible loss of the principal amount invested; diversification does not protect against a loss in a declining market or ensure a profit; stocks of companies in emerging markets are generally more risky than stocks of companies in developed countries; foreign investing involves additional risks including currency fluctuations and political uncertainty; prices of mid- and small-cap stocks often fluctuate more than those of large-company stocks; investments in bonds are subject to interest rate, credit, and inflation risk; past performance is no guarantee of future results; nothing constitutes tax or legal advice; investment products described herein are not bank deposits; are not insured by the FDIC or any other governmental entity; are neither obligations of, nor guaranteed by Green Valley Wealth Advisors, LLC. We are not responsible for the accuracy or content on third party websites; any and all links are offered only for use at your own discretion; and our privacy policies do not apply to linked websites.
