The Investment Strategies Channel

Jack Bogle on the Limits of the Fiduciary Rule and the Future of the Advisory Industry

Speaking two weeks after his 88th birthday, Jack Bogle called the fiduciary rule “silly” and said that financial advisors’ fees are heading lower. Indeed, he said, advisors are destined to charge hourly or retainer fees, like lawyers and accountants.

Equity Growth Stars: Bargains in Disguise

Investors are wary about US stock multiples. But elevated valuations of high-growth stocks may be deceiving. Growth overachievers that can deliver persistent fundamental strength often make a mockery of their short-term valuations in hindsight.

Stronger Global Growth and Inflation Set the Stage for Bond Market Volatility

In this Q&A, Kathleen Gaffney and Henry Peabody share their outlooks for the bond market and the impact of stronger global growth, and how they seek to position the Multisector Income strategy.

The Price Clients Pay for SRI/ESG Investing

Socially responsible investing (SRI) has captured nearly a quarter of U.S.-based assets. New evidence from one of the world’s largest sovereign wealth funds shows that those investors are sacrificing significant performance. Indeed, they are giving up more than 1% a year – effectively doubling the typical 1% AUM advisory fee.

Should Investors Fear Another Watergate?

We have a very quiet week for economic reports. The housing data are quite important, but it will be a Tuesday story without legs. The White House drama will be compelling for the media. Whether investors like the idea or not, we should expect another week of news that is mostly political.

The Most Important Stock Investment Lesson I Ever Learned

My investing career officially started in 1970. However, for several years prior to that time I was an avid and interested student of common stock investing. My initial lessons were taught by studying the behavior and practices of the most renowned stock investors.

Testing DALBAR’s Claims about Mutual Fund Investors

DALBAR’s report is commonly cited as “proof” that mutual fund investors have historically made poor market-timing decisions. While DALBAR does not publicly disclose its approach, in this article I use a transparent and industry-accepted methodology, based on publicly available data, to demonstrate that investors’ returns have not been nearly as bad as DALBAR claims.

Timing Intelligence? A Response from Dalbar

It is unfortunate that Blanchett’s article misses the central point that the Quantitative Analysis of Investor Behavior (“QAIB”) measures the mutual fund investor experience and not the areas raised as concerns. In fact, the author admits by his ignorance of its contents that he has not read the report that he so roundly criticizes.

Market Cap to GDP: An Updated Look at the Buffett Valuation Indicator

With the latest monthly close and the GDP Q1 Advance Estimate data, we now have an updated look at the popular "Buffett Indicator" -- the ratio of corporate equities to GDP. The current reading is 133.2%, up from 125.2% the previous quarter. It is currently at an interim high.

Moving Averages: April Month-End Update

Valid until the market close on May 31, 2017

The S&P 500 closed April with a monthly marginal gain of 0.91% after a fractional loss of 0.04% in March. All three S&P 500 MAs are signaling "invested" and two of the five Ivy Portfolio ETFs — Vanguard Total Stock Market ETF (VTI) and Vanguard FTSE All-World ex-US ETF (VEU) — are signaling "invested".

Sentimental Journey

Like a good attorney, we rarely ask a question for which we don’t have the answer. In the case of looking at sentiment in the economy and in the stock market, we like watching to get a feel for what our professional and individual investor clients are going through to see if it matches what we are hearing and seeing.

Should Investors Let the Speculators Play Their Games Today?

Now that I am an honored member of the “gray-beard club” of investment managers, I can reminisce fondly back to the time when I first entered this business and began learning my trade with the utmost confidence of the “cute, fuzzy, teddy bear” youngster I was.

Penske Automotive Group: Growth, Value and Dividend Growth Hiding in Plain Sight

Introduction Finding attractive investments in the dividend growth space has become a real challenge in today’s overheated market. This is especially true if you limit yourself to looking in the obvious places. Simply stated, you won’t find any bargains today in the Procter & Gambles, Johnson & Johnsons and Coca-Colas.

Weighing the Week Ahead: How Should Investors Cope with Geopolitical Risk?

Last week I suggested that the market might be ready for some real news—corporate earnings. That is still a key topic, but attention is focused on world events.

ETFs’ Total Costs Underappreciated

ETFs can have significant costs that aren’t entirely evident in expense ratios. From transaction to holding costs to ETF composition, the total costs of ETFs can be a significant drag on returns, which are coming under the microscope, as are the robo-advisors that typically use them.