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 […]

Can Active Investing Still Generate Alpha?

Back in 1984, Warren Buffett wrote an article entitled “The Superinvestors of Graham-and-Doddsville” (referring to the book Security Analysis co-authored by Benjamin Graham and David Dodd) in which he argues that passively managed funds can generate alpha for investors (beat the market) more so than actively managed funds. In the July issue of Advisor Perspectives, Larry Swedroe […]

The Risk of Market Timing

Again and again, investors are advised against trying to time the market, but it somehow fails to keep them from “doing dumb things with their savings.” At least that’s the opinion of Spencer Jakab, who writes on the subject and much more in his new book entitled “Heads I Win, Tails I Win”. Earlier this […]

Your Emotions and the Stock Market

A critical element in successful investing is “how you react to feelings of both discomfort during the market’s fear cycle and invincibility when markets are booming,” writes Marty Leclerc earlier this month for Forbes. During periods when share prices drop, he says, data shows that most investors want to end the discomfort, which is the […]

Some Tasty Stock Picks in Organic Foods

Along with the country’s growing interest in eating healthier comes an ever-increasing appetite for organic food. Sales in this segment have grown by double digits every year since 1990 (from $3.6 billion in 1997 to $43.3 billion in 2015), and the segment’s consolidation continues with the recent announcement that French company Danone will purchase WhiteWave Foods (maker […]