Sanity and Savings are Paramount for Today’s Investor

“Rates probably won’t rise until almost no one on earth is expecting them to. When that happens, it will hurt,” blogs Jason Zweig of The Wall Street Journal. Underscoring the strange financial climate where bonds are paying near nothing and stocks have risen to all-time highs, Zweig points out that we’ve been here before. Inflation-adjusted […]

The Stubborn Bull Market Continues to Advance

While waiting for the other shoe to drop has become a favorite pastime for many in the investment community, the current bull market appears to be pretty sturdy. Precisely why, according to The Wall Street Journal’s Steven Russolillo, “more milestones could be in the offing.” Data from the Investment Company Institute shows that, post-Brexit, investors […]

Bide Your Time in an Overbought Market

Although current market conditions might make assets vulnerable to reversal, that doesn’t necessarily mean a drop is imminent. When asked whether recent gains in the S&P 500 mean it’s time to take profits, a recent Wall Street Journal blog quotes Instinet executive director Frank Cappelleri as saying, “At some point it will be,” he says, […]

A Conversation with Nuveen’s Bob Doll

Making predictions can be pretty dicey business in general, but particularly when it comes to matters of the economy. A recent Investment News article recapped an interview with 36-year veteran portfolio manager Bob Doll (chief equity strategist at Nuveen Asset Management) that focused on his predictions for the year and his general economic outlook. While […]

In Factor Investing, Integration is a Plus

Portfolio diversification is a known strategy for minimizing risk, but these efforts can be thwarted if the diversified securities react in a similar way to market conditions. Factor investing is designed to reduce this risk by adjusting holdings based on specific attributes, and returns have been shown to increase if several factors are combined. A […]

Zweig: Avoid Higher Risk When Yields are Low

It seems that yield-starved investors are turning to high-risk investments in what Jason Zweig of The Wall Street Journal recently termed, “a reckless lunge.” Since June 30th, inflow to ETFs specializing in bonds from emerging-market countries has hit $1.2 billion. And, so far this month, investors have poured $2.8 billion into high-yield ETFs holding “junk” […]

How the Brain Handles Buying and Selling

We’ve written often about the role that human behavior plays in investing. While logic and reason are contributing factors, emotions hardly take a back seat. In a recent issue of Enterprising Investor, Shreenivas Kunte, CFA, shares some perspective on the different degrees to which buying and selling take an emotional toll on the investor. Human […]

Zweig: Gold Is Not All That Glitters

In the summer of 2015, Jason Zweig wrote an article for The Wall Street Journal in which he claims that investing in gold (which was trading at around $1,130 an ounce) was a “leap in the dark.” In a WSJ blog earlier this month, he writes “Gold is up 20% since I ridiculed it; the […]

Bill Gross on Weak Credit: Do Not Pass Go

It might sound like an oversimplification to discuss the current state of the credit markets in terms of a Monopoly game, but that’s exactly what Janus fund manager William Gross does in a recent Barron’s article. In particular, Gross compares a player’s passing of “Go” and collection of $200 as representing “new credit that is […]