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 Baijnath Ramraika, Prashant Trivedi
Most, if not all, quantitative systems are designed by selecting factors that were present in successful investments/trades over a selected back-test period. That process, however, too often results in strategies that fail to produce results that are as successful as in the historical data. Here’s why.
by Daniel Solin
In an article last week, I discussed how an understanding of three behavioral biases (in-group, confirmation and illusion-of-control bias) can help you gather more assets. Today, I will tackle another prevalent bias – negativity bias – and provide suggestions for how to use knowledge of its effects to your advantage.
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 have hired the best individual contributors anyone could find. Individually, they are strong performers, but they trip over one another whenever they have to agree on ways to meet client needs. Are there incentives or punishments I can dole out to change this dynamic?
by Larry Swedroe
Mario Gabelli is one of the highest paid executives in America, having earned $88.5 million in 2014 – more than the leaders of all other publicly traded asset-management firms. But have the investors in his mutual funds been as richly compensated when compared to what they would have earned in comparable, passively managed funds?
by Dan Richards
All advisors want their meetings to be productive – resulting in deeper relationships and buy-in to your recommendations from clients, open conversations with prospects about their needs and honest discussions about how you can help. An email from an advisor last week pointed to research from commercial pilots and surgeons that can make your meetings a better use of your time.
by Michael Lebowitz
For the last five years, bond market experts have unfailingly and wrongly predicted a rise in interest rates. If the current rate-hike fears prove unfounded again, municipal-backed closed-end funds (M-CEFs) is an asset subclass likely to perform well. Here are eight such funds to consider.
by James Tierney, Jr. of AllianceBernstein
The minimum wage is rising across the US, and fast-food companies are feeling the pinch. In our view, watching how companies cope reinforces the importance of a selective approach to stockpicking.
by Ivy Global Real Estate Team of Ivy Investment Management Company
There are many drivers of recent short-term price changes for publicly traded real estate companies in the current market environment. These include changes in the market’s outlook for economic growth, for interest rate movements, for central bank actions and even the issues surrounding Greece and Ukraine.
by Jerome Schneider of PIMCO
On July 23 2014, the Securities and Exchange Commission (SEC) formally approved additional reforms for money market funds. These changes will directly impact institutional investors and definitively alter the dynamics of liquidity markets.
by Tyler Howard of Saturna Capital
George Taylor's "Hemline Index Theory" has persisted since 1926, but is it true? If you search long enough, or mine enough data, you are bound to find correlations that, while statistically robust, have no meaningful explanatory power.
by William Smead of Smead Capital Management
Storm clouds seem to build by the day. Many investors have an ongoing love affair with a few large-cap and more futuristic companies, yet they have corrected the prices of any stock with disappointing earnings or an attachment to the production of commodities.
by Mohamed A. El-Erian of Project Syndicate
Greeks and other Europeans may fault Yanis Varoufakis, Greece's former finance minister, for pursuing his agenda with too little politesse while in office. But the essence of that agenda was – and remains – largely correct.
by Jeremy Grantham of GMO
Chief investment strategist Jeremy Grantham reviews "10 topics that really matter, at least in my opinion. They can all be viewed as problems: potential threats to our well-being"
by Ben Inker of GMO
In a new quarterly letter to GMO's institutional clients, co-head of asset allocation Ben Inker examines the impact on a range of global asset classes of "price-insensitive market participants" who may "buy assets for reasons other than the expected returns those assets may deliver."
by Richard Bernstein of Richards Bernstein Advisors
Our research suggests that while many are fearful of the unknown, investors should embrace, not fear, illiquid asset ETFs.
Recent dshort Posts
Today's seasonally adjusted 267K new claims was slightly better than the Investing.com forecast of 270K. The four-week moving average at 274,750 is just over 8K above the 15-year interim low set in mid-May.
The Advance Estimate for Q2 GDP, to one decimal, came in at 2.3 percent, a substantial increase from the 0.6 percent of Q1, which is an upward revision from -0.2 percent prior to today's annual revisions. Today's number came in a tad on the light side of most mainstream estimates. The WSJ survey of economists had median and mean forecasts of 2.6 and 2.7, respectively. Investing.com was looking for 2.6.
We have added Millennials to our series of employment demographics. The general consensus is that the Millennial cohort consists of people born between the early 1980s to the early 2000s. In this study we will focus on the Bureau of Labor Statistics data for the those born between 1981 and 2000.
Earlier today the National Association of Realtors released the June data for their Pending Home Sales Index. The NAR reports that "after five consecutive months of increases, pending home sales slipped in June but remained near May’s level, the highest in over nine years." The adjacent chart gives us a snapshot of the index since 2001.
The latest Conference Board Consumer Confidence Index was released this morning based on data collected through July 16. The headline number of 90.9 was a significant drop from the June final reading of 99.8, a downward revision of June's initial 101.4. Today's number was below the Investing.com forecast of 100.
Today the Richmond Fed Manufacturing Composite Index jumped 7 points to 13 from last month's 6. Investing.com had forecast no change at 6. Because of the highly volatile nature of this index, we include a 3-month moving average to facilitate the identification of trends, now at 7.7, indicating expansion.
With this morning's release of the May S&P/Case-Shiller Home Price we learned that seasonally adjusted home prices were down fractionally month over month and rose across the country over the last 12 months but at a slower pace. The seasonally adjusted 20-city index, the most closely watched of the Case-Shiller series, was down -0.2% from the previous month. Nonseasonally adjusted it was up 4.9% from a year ago.