Copper Better Hedge than Gold

While gold has been the popular inflation hedge over the past ten years, copper was a better bet according to a recent Bloomberg article. “While data show that broad community indexes provided the best bang for the buck during periods of rising costs in the U.S., the red metal stands out. According to the article, […]

Bond Yields Will Probably Stay Low

The bond market continues to cause confusion for experts, writes a Charles Schwab strategist in a recent Barron’s article. Since the end of the recession in 2009, it argues, “consensus expectations have called for higher bond yields and the death of the 35-year bond bull market. Yet, 10-year Treasury yields are now nearly 200 basis […]

Amidst Conflicting Signals, Keeping Cash May Be Prudent

In an environment where markets look expensive and are sending conflicting signals, keeping a store of cash might not be a bad idea. This according to a recent article in The Wall Street Journal. According to the article, lower bond yields and swollen equity markets are “sending conflicting signals; the former reflecting the lackluster picture […]

Hulbert Cites Bear-Market Warning Indicator

  In a recent MarketWatch article, Mark Hulbert presents a market-timing indicator that “has a better historical track record than the cyclically adjusted price to earnings ratio” made famous by Nobel Laureate Robert Schiller. The indicator, he writes, is the “average portfolio allocation that U.S. households have to equities,” which has reached its current level […]

Former FPA Manager – Bob Rodriguez – Shares Market Insights

Robert (Bob) Rodriguez, former managing partner at asset-management firm FPA, shared insights and opinions regarding various market-related topics in an interview recently published in Advisor Perspectives. Here are some highlights: On mean reversion:  Rodriguez emphasizes that a mean reversion will occur. He shares his belief that the “standards in the industry are being compromised; monetary policy […]

Activist Dan Loeb is Sweet on Nestle

In a letter released to investors last month, Dan Loeb’s hedge fund Third Point announced that it owns approximately 40 million shares in Switzerland-based Nestle SA, according to a recentBloomberg article, referring to the $3.5 billion stake as “the biggest bet of his two-decade career as an activist investor.” According to the article, the move […]

Buffett’s Patient Approach to Investing

In a recent article for Forbes, Validea CEO John Reese discusses Berkshire Hathaway’s current stockpile of cash and how Buffett, who Reese refers to as a “Patient Investor”, approaches both choosing opportunities and making investments with care. Reese cites a Bloomberg article that describes Buffett’s investing principle: “There’s no need to chase deals,” it says, […]