by Wade D. Pfau
Through inertia and stubbornness, old ideas die slowly. Financial advisors maintain a dismal view about reverse mortgages. However, much has changed in just the past few years. Revisit your outdated thinking with an open mind about a tool that is on the cusp of more widespread use.
by Sponsored Content from Invesco
Due to its simplicity, market-cap weighting has long been a popular means of calculating the value of market indexes. But as an investment strategy, market-cap weighting has limitations – frequently resulting in outsized proportions of overvalued stocks, and less-than-optimal exposure to undervalued stocks. Smart beta solutions seek to expand investors’ options by providing exposure to objective, rules-based methodologies that harvest returns from specific investment factors or deliver broad market exposure through alternative weighting strategies.
by Michael Edesess
Several criticisms – I counted three – have been leveled at the AGG bond index recently. I explored these critiques in a wide-ranging conversation with John C. Bogle, renowned founder of The Vanguard Group. My conclusion is that two of these three criticisms are inconsequential or mistaken while the third is meaningful and significant.
by Dan Richards
Given today’s competing demands for attention, it’s never been harder to get in front of affluent prospects. But here’s is one statistic that will get you in front of wealthy investors...
by Kristen Luke
How do you find good COIs with whom you can trade referrals? Follow these steps to create a powerful COI network:
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
We all get along in our firm, and that’s the problem. Issues go unresolved because no one wants to rock the boat. People don’t raise their concerns because our firm leader is the consummate “nice guy.” How do I bring issues up without being the bad guy?
by Bob Veres
I envision a world where advisors are vetting a growing number of nontraditional investments for their clients.
by Michael Finke
I will show that an eminently effective way to fund retirement is through a deferred-income annuity, particularly if it is purchased through an IRA as a qualified longevity annuity contract (QLAC). The advantages of purchasing a QLAC include the ability to avoid RMDs.
by Dan Solin
I have found the single most significant factor in increasing my clients’ closing ratio has been their willingness to substantially upgrade their wardrobe. In this article, I will discuss my experience with men. Next week, I will discuss dress for women.
by Liz Ann Sonders of Charles Schwab
I’ve written many times about equity market valuation being both in the eye of the beholder and a function of the chosen indicator. Even the most common valuation metric—the price/earnings (P/E) ratio—has many derivations. The table in this report is a summary of most of the common (and somewhat less common) valuation metrics, and a subjective assessment of whether they are sending an inexpensive or expensive message about the stock market presently.
by Russ Koesterich of BlackRock
BlackRock Global Chief Investment Strategist Russ Koesterich discusses the case for Treasury Inflation Protected Securities in the current environment.
by Andy Fleming of Heartland Advisors
Year-over-year global trade growth, as measured in U.S. dollars, has turned negative for the first time in more than six years. While those predicting a recession have jumped on this bandwagon, a closer look at how Americans are spending money tells a different story. Consumer spending is up a healthy 6.9% since the 2007 pre-recession levels, yet those dollars are being spent in different areas. While we’d welcome an uptick in global trade, we believe without it, investors can still profit by following the spending.
by Bryce Coward of GaveKal Capital
It’s quite easy to get carried away with the drawing of conclusions based on a few technical chart patterns (and we are not doing that here!), but this chart is just too ugly to at least go unmentioned. What we’re looking at is the percent of stocks in our own Gavekal Capital International DM Americas Index that are at least 10% off of their 200-day high.
by Brian Wesbury, Robert Stein of First Trust Advisors
We are watching Christmas season sales data very carefully, but we also warn investors that the early data are not very useful. No matter what initial readings show, the underlying fundamentals look relatively strong.
by Robert Doll of Nuveen Asset Management
U.S. markets were relatively quiet last week due to the Thanksgiving holiday. Economic data were generally positive and investors seemed less concerned about increasing evidence that the Federal Reserve will raise rates at its policy meeting in December. The S&P 500 Index was up fractionally for the week. Smaller capitalization stocks outperformed, as did the consumer staples and energy sectors. Outside of the United States, Chinese stocks sold off sharply on Friday as investors grew nervous about policymakers’ latest attempts to regulate the Chinese brokerage industry.
by Gershon Distenfeld of AllianceBernstein
If you bought a high-yield exchange-traded fund (ETF) over the past two years and still own it, you’ve probably lost money. But don’t fret. This might be an ideal time to change course.
by David Carroll of Cleary Gull
The standard response is that the market favors Republican candidates due to their more business-friendly posture favoring lower taxes and less regulation. History, however, is on the side of the Democrats. Since 1945, the average annual gain of the S&P 500 under a Democratic president was 9.7%. Whereas, under a Republican in the White House, the average annual return was only 6.7%. What gives?
by Jeff Miller of NewArc Investments, Inc.
Back from a quiet, holiday-shortened week, market participants face an avalanche of data and plenty of FedSpeak. This is an irresistible combination for pundits, who will parse each economic report with emphasis on what it might mean for the Fed. In light of many Fed promises, they will all be asking: Will the Fed really be data dependent?
Recent dshort Posts
The S&P 500, which has alternated between gains and losses for eleven sessions, started December on a positive note. The index opened at its intraday low and surged to its morning high a few minutes later. It then exhibited some indecision through the early afternoon before rising to its 1.07% closing gain just three ticks off its intraday high. Will the index continue its pattern of alternating between gains and losses in tomorrow's session? Or could we be seeing the start of a holiday rally?
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 62.6%.
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.
Quick take: At the end of November the inflation-adjusted S&P 500 index price was 89% above its long-term trend, an increase from 84% the previous month.
About the only certainty in the stock market is that, over the long haul, over performance turns into under performance and vice versa. Is there a pattern to this movement? Let's apply some simple regression analysis to the question.
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.
Today the Institute for Supply Management published its monthly Manufacturing Report for November. The latest headline PMI was 48.6 percent, a decrease of 1.5% from the previous month and below the Investing.com forecast of 50.5. This was the first month of contraction in 36.
Quick take: Based on the November S&P 500 average of daily closes, the Crestmont P/E is 92% above its arithmetic mean and at the 97th percentile of this fourteen-plus-decade monthly metric.