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Advisor Perspectives
Insights into the world of high- and ultra-high net worth investing
December 23, 2008- Vol 2, Issue 52
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We want to wish all our readers a Merry
Christmas and a Happy Holidays!
Vanguard founder and former CEO John
Bogle's most recent book is Enough.
True Measures of Money, Business and Life. In the book and in our interview, Mr. Bogle reflects on
the excesses that mark so many segments of our society today, and considers
just what "enough" means in money, business, and life.
The nomination of Mary Schapiro to serve
as SEC Commissioner may be the worst
possible selection, according to industry veteran Bob Veres. In this guest contribution, Veres contends
that Schapiro's track record does not demonstrate sensitivity to the
regulatory issues facing independent financial planners and wealth managers.
Managed futures has
been one of the few strategies offering positive
returns in 2008, and we look at the source of this
out-performance. Bruce Fraser's article reviews the ways in which
advisors can participate in managed futures and identifies the critical
risk factors.
Since their creation in 1998, Roth IRAs have
enjoyed ever-increasing popularity as a tax-savvy alternative to
conventional tax-deferred retirement savings, such as traditional IRAs and
traditional 401(k) salary deferral contributions. In this guest
contribution, authors Ben Norquist and Mike Slemmer look at opportunities becoming available as a result of
changes to the tax laws.
Jay Light, Dean of the Harvard Business School, provides his assessment
of the credit crisis and what challenges
remain for policy makers. Light also shares his thoughts
on the future role of the SEC and the plight of the Detroit automakers.
Two of our articles last week - In
Defense of "Faux Planners" and Diversification - When More is Less -
drew a host of letters to the Editor.
In the former case, most of the responses supported John Robinson's
contention that the CFP certificate should not be a prerequisite to using
the Financial Planner title. In the latter case, several readers
disagreed with Dave
Loeper's
claims regarding the lack of benefits from diversification, and we include
Loeper's response to those claims.
Lastly, we highlight some recent Advisor Market Commentaries.
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Our Interview with John Bogle
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Our interview with
John Bogle covers a range of topics, including his outlook for 2009 and his
views on an appropriate asset allocation for today's markets. He also
addresses how to reform the mutual fund industry, how to restructure
executive compensation, and what advice he would offer President-elect
Barack Obama regarding leadership skills.
Read the article
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The
Empire Strikes Back - Reflections on Mary Schapiro's Nomination as SEC
Commissioner
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Bob Veres argues
that Mary Schapiro's track record with FINRA (the successor to the NASD)
demonstrates a bias toward stricter regulation of independent advisors,
rather than of NASD broker dealers, despite the fact that the most
egregious and harmful abuses occurred in firms regulated by the NASD.
This does not bode well for independent advisors. Veres supplies a
link for advisors to advocate their positions on the "change.org"
web site.
Read the article
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Managed
Futures: An Overlooked Asset Class
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One sector that has proved a bright spot in this ugly market is worth the
attention of financial advisors and wealth managers: managed futures.
Managed futures are the second-best performing hedge fund strategy in the
Credit Suisse/Tremont Hedge Fund Index, delivering 15.6% returns through
November.
Read the article
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Roth
IRA Conversions - a Golden Opportunity for Advisors and their Clients
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Investment advisors are hungrier than ever for positive news to share with their
clients - it has been scarce as of late. Thankfully, there are bright spots
on the horizon for retirement planning. Imminent changes to the Roth IRA
rules will open the door to over $1 trillion dollars in potentially
convertible retirement plan assets on January 1, 2010
- good news for clients and for advisors looking for new ways to grow their
businesses.
Read the article
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Jay
Light: This Time is Different
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Jay Light says
this time is different. In a conference call with alumni December 16, the
Dean of the Harvard
Business
School
said the origins and effects of the current crisis are unlike those we've
seen before. And it is definitely more dangerous than any of the
previous half-dozen market downturns he has endured.
Read the Article
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Letters
to the Editor - In Defense of "Faux Planners"
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The article last week by John Robinson, In Defense of "Faux
Planners", contended that the CFP certificate should not be
required to use the title Financial Planner. A number of readers
wrote in, mostly in agreement with Mr. Robinson's position.
Read the Article
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Letters
to the Editor: Diversification - When More is Less
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The article last week by Dave Loeper, Diversification - When More is Less,
argued that the more "sophisticated" and highly diversified
portfolios recommended by many in the industry actually under-performed a
"boring" less diversified portfolio. Several readers
objected to Loeper's claims and we also present Loeper's defense to these
objections.
Read the Article
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Highlights
from Advisor Market Commentaries
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We highlight recent submissions to Advisor Market
Commentaries:
Harold Evensky of Evensky & Katz provides his response to the Madoff
debacle, explaining to his clients the warning signs that should have been
heeded.
Read the Commentary
In case you did not see it last week, here is the letter provided by hedge
fund due diligence firm Aksia to its clients regarding Madoff.
Read the Commentary
Ray Ferrara of The ProVise Management Group offers some interesting
commentary on the size of the bailout packages to date, and (you will have
to read to the end for this) some staggering analysis of market performance
in the last 100 days.
Read the Commentary
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Advisor
Perspectives
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