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 June
15 2010 - Vol 4, Issue 24
Dear Reader,
Our readership grows every month and in May we set new records, with
over 43,000 unique visitors and nearly 200,000 page views.
If you want to deliver your message to our highly targeted audience
of financial advisors, please contact us
here.
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The market downturn has caused a rethinking of many core
principles underpinning investment advice, chief among them the
role of asset allocation. We talk with Yale's Roger Ibbotson
about the impact of market returns and active management in
explaining return variance and the role of asset allocation going
forward.
Do your plan sponsors understand what it means to be a fiduciary
and act prudently in that capacity? Are they aware of recent
regulatory changes and how these may impact their fiduciary
duties? Joe Lee, head of BlackRock's Advisor-Sold DC Distribution,
discusses the opportunity advisors have to build and strengthen
relationships with plan sponsors in the current environment.
We thank them for their sponsorship.
Harvard's Niall Ferguson is arguably today's leading economic
historian. In this interview, Ferguson discusses the current
troubles and future outlook for Europe. We provide a transcript
and a video.
Last week Dan Richards conducted a webinar focused on the key
decision that will drive advisors' long term success. Richards
talks about what advisors can learn from the success of Apple,
Google, Coke and Walmart.
More articles below...
Today, multiple referrals sourcesare required for profitable
growth, Whether you're just getting started or have a network already
in place, Ani Yessaillian offers steps can help you sharpen the
focus and efficiency to cultivate relationships to client gatekeepers.
Technology provides new options to the traditional hand-written thank-you
note. Kristen Luke offers three options to consider,
depending on the demographics of your referral sources and the
resources available in your firm.
In a letter to the Editor, a reader responds to our
article last week, Five Strategies for a Rising Rate Environment.
Lastly, we highlight submissions to Advisor Market Commentaries.
We welcome guest submissions from our readers. For more
information, here are our guidelines.
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newsletters, we can send you a text-only version. Please send
an email to feedback@advisorperspectives.com requesting the
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Asset Allocation Matters, But
Not as Much as You Think
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Roger Ibbotson, the founder of Ibbotson Associates, has published
new research showing that active management and market movements matter
a lot more than asset allocation in explaining the variation of returns
over time. We also look at Ibbotson's new funds designed to
take advantage of the liquidity premium.
Asset Allocation Matters, But Not as Much as You Think
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BlackRock Examines an Altered
Fiduciary Landscape
Do your plan
sponsors understand what it means to be a fiduciary and act prudently
in that capacity? Are they aware of recent regulatory changes and how
these may impact their fiduciary duties? Joe Lee, head of BlackRock's
Advisor-Sold DC Distribution, discusses the opportunity advisors have
to build and strengthen relationships with plan sponsors in the current
environment.
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Today's Top Economic Historian:
The Path to European Stability
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Strategy Advice from Apple and
Google
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Over the past twenty years, there's been an explosion in
research into what differentiates companies that succeed from those who
fail, and what predicts which stock prices will outperform and which
will lag. As an example, the June issue of the Harvard Business
Review featured an article titled "The Coherence
Premium," summarizing research on top performers across a variety
of industries.
Strategy Advice from Apple and Google
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Three Steps to Start Building a Powerful
Center-of-Influence Network
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The Great Thank-You Note Debate
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Any thank-you note you send will have some impact and is
infinitely better than not showing gratitude at all. You should
evaluate the preferences and mindset of your clients and centers of
influence as well as evaluate your own capacity to implement the
option, to make the right choice for your firm.
The Great Thank-You Note Debate
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Letter to the Editor -
Strategies for Rising Rates
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Highlights from Market
Commentaries
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The recent G-20 communique
is a further confirmation that structural and balance sheet realities are
imposing themselves on the global economy. Compared to what the world has
known for the last 40 years, this results in a highly unusual
configuration of growth, debt and deficits. It also raises legitimate
questions about the prospects for self-sustaining private sector
recoveries in industrial countries. Finally, it loudly illustrates the
limitations of cyclical policy responses and international coordination,
as well as associated problems with unintended consequences and
collateral damage.
On the Need to Listen Carefully to What the G-20 is
Saying by Mohammed El-Erian of PIMCO
High growth and financial stability in emerging economies are helping to
facilitate the massive adjustment facing industrial countries. But that
growth has significant longer-term implications. If the current pattern
is sustained, the global economy will be permanently transformed.
Specifically, not much more than a decade is needed for the share of
global GDP generated by developing economies to pass the 50 percent mark
when measured in market prices.
Can Emerging Markets Save the World Economy? by
Mohammed E-Erian and Michael Spence of PIMCO
The fundamental problem with the global economy today is that we have not
accepted the word 'restructuring' into our dialogue. Instead, we have
allowed our policymakers to borrow and print extraordinarily large
band-aids to temporarily cover an open wound that will not heal until we
close the gap. That gap is the difference between the face value of debt
securities and the actual cash flows available to service them. The way
to close the gap is to restructure the debt. This will require those who
made the bad loans to accept the associated losses.
Extraordinarily Large Band-Aids by John P. Hussman of
Hussman Funds
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