by Wade Pfau
Income annuities provide payments precisely matched to a client’s longevity while stocks provide opportunities for greater investment growth. The question remains whether clients should hold bond funds in their retirement income portfolio.
by Sponsored Content from Invesco
- Convertible securities uniquely combine equity and bond features.
- In my view, convertibles are attractive today due to their historical performance during rising interest rate periods.
- I examine asset class performance during each of the last 10 periods of US rising interest rates.
by Dan Richards
Every advisor would like to get more done in less time – and many look to moving to a paperless office and to other breakthroughs in technology in order to do just that. But a recent conversation with an advisor reminded me that to increase your productivity, it’s the small changes that matter.
by Michael Lebowitz
Clear-headed reason shows that unless one is an executive whose compensation is tied to metrics influenced by the effects of share buybacks, there are few instances that support this use of corporate resources. Indeed, shrewd investors can profit at the expense of companies that have aggressively bought back shares.
by Daniel Solin
To be a successful advisor, you need to understand how risk affects the decisions investors make and what you can do to make those decisions more objective and responsible. Demonstrating value at a time when investments are becoming more of a commodity is a popular topic in advisor-industry circles.
Find career opportunities for firms that seek to add financial advisors and planners to their staff. Read more to find out how to post opportunities at your firm.
by Beverly Flaxington
I hired a team member a couple of years ago who was very seasoned with an excellent background and a track record of success. He arrived, and all of a sudden he wasn’t motivated, didn’t return client calls in a timely fashion and had no fire in the belly. He wants ownership, but I need to see motivation to give it.
by Joe Tomlinson
Managed-payout funds promise to meet retirees’ need for sustainable lifetime income without relying on annuities. To see whether this promise can be fulfilled, I’ll answer three questions: What’s the best design for such funds? How do they compare to annuities? Can retirees do even better by combining managed-payout funds and annuities?
by Dan Richards
In a previous article, Dan Solin pointed to research on how performance improves if people dress in a more professional fashion. But my recent conversations with advisors and clients suggest that while dressing up can have a positive impact, you can overdo it. In fact, in some cases it makes more sense to dress down.
by David Schawel
Are we nearing the end of the equity bull market? An ominous signal is coming from recent activity in the M&A market.
by Darin Turner of Invesco Blog
Infrastructure is the backbone of every economy, providing essential public services such as water supply, energy and mobility. And for investors, infrastructure also has the potential to provide unique benefits.
by John Hussman of Hussman Funds
In economics, we often describe “equilibrium” as a condition where demand is equal to supply. Textbooks usually depict this as a single point where a demand curve and a supply curve intersect, and all is right with the world.
by Liz Ann Sonders, Brad Sorensen, Jeffrey Kleintop of Charles Schwab
Peak earnings season is behind us, Greece is not in imminent danger of exiting the euro, Europeans have headed out on vacation and the US Congress won’t be far behind. After a volatile start, the US market appears to be settling into a more typical summer pattern—for now.
by Chuck Carnevale of F.A.S.T. Graphs
The primary attractions supporting investing in bonds or other fixed income instruments have traditionally been high income and safety. People invest their principal in bonds and receive a stated interest rate (coupon) over the life of the bond and are given the promise of having their principal returned at maturity. Under normal times, bonds would typically pay a higher rate of interest than the dividend rate on stocks. Consequently, bonds have acquired the reputation as low risk and high income instruments.
by Jennifer Thomson of GaveKal Capital
With slightly more than half of the constituents in the MSCI World Index having reported 2Q results, we thought it would be useful to take a look at the trend in sales and earnings so far. In the developed world, about 54% of those companies that have reported sales results have surprised positively, led by the Health Care and Financials sectors. The most negative sales surprises have been concentrated in the Consumer Staples, Materials, and Industrials sectors.
by Scott Brown of Raymond James
Following Fed Chair Janet Yellen’s monetary policy testimony in mid-July, the odds of a September rate hike seemed about even. That doesn’t mean that the Fed’s decision would be a toss-up at the time of the meeting. When the September 16-17 policy meeting rolls around, it should be pretty clear what the Fed will do (or not do). Rather, that policy outlook reflected the uncertainty in the economic data that would arrive between now and the September FOMC meeting. However, just two weeks later, the evidence is pointing to a likely delay.
by Michael Canter, Matthew Bass of AllianceBernstein
US mortgages today have little in common with the risky loans made before the housing crisis. But some market participants aren’t treating them all that differently. We think that’s a mistake—and an opportunity.
by Michael Winchell of Larkin Point Investment Advisors LLC
For the past 30 years, the paradigm portfolio holding 60-percent stocks and 40-percent government debt seemed to exhibit a reasonable mix of both growth and protection, being a simple allocation the market beta of two very liquid asset classes with low (occasionally negative) correlation.
by Hale Stewart of Hale Stewart
The Fed’s policy statement was the main economic event this week; its opening paragraph began, “Growth in household spending has been moderate and the housing sector has shown additional improvement; however, business fixed investment and net exports stayed soft.”
Recent dshort Posts
For the past few years we've been following a couple of transportation metrics: Vehicle Miles Traveled and Gasoline Volume Sales. For both series we focus on the population adjusted data. Let's now do something similar with the Light Vehicle Sales report from the Bureau of Economic Analysis. This data series stretches back to January 1976. Since that first data point, the Civilian Noninstitutional Population Age 16 and Over (i.e., driving age not in the military or an inmate) has risen 62%.
The Q Ratio is a popular method of estimating the fair value of the stock market developed by Nobel Laureate James Tobin. It's a fairly simple concept, but laborious to calculate. The Q Ratio is the total price of the market divided by the replacement cost of all its companies.
The BEA's Personal Consumption Expenditures Chain-type Price Index for June shows core inflation below the Federal Reserve's 2% long-term target at 1.29%. The latest Core Consumer Price Index release, also data through June, is higher at 1.76%. The Fed is on record as using Core PCE data for its primary inflation gauge.
Quick take: Based on the July S&P 500 average of daily closes, the Crestmont P/E is 96% above its arithmetic mean and at the 98th percentile of this fourteen-plus-decade monthly metric.
The Federal Reserve System consists of twelve Federal Reserve Banks, twenty five branches, and the Board of Governors in Washington, D.C. Each bank serves a larger regional district. Five out of the twelve Federal Reserve Regional Districts currently publish monthly data on regional manufacturing: Dallas, Kansas City, New York, Richmond, and Philadelphia. Here we introduce an overview of all five with an overlay and average of historical data.
Here is a new update of a popular market valuation method using the most recent Standard & Poor's "as reported" earnings and earnings estimates and the index monthly average of daily closes for the past month. For the earnings, see the table below created from Standard & Poor's latest earnings spreadsheet.
With the release of today's report on June Personal Incomes and Outlays we can now take a closer look at "Real" Disposable Personal Income Per Capita.
The June nominal 0.39% month-over-month increase in disposable income drops to 0.16% when we adjust for inflation. The year-over-year metrics are 2.61% nominal and 2.28% real.