The Specialty Investments Channel

Aflac: A Valuation Conundrum? Fairly Valued Dividend Aristocrats: Part 1 of 7

Aflac (AFL) is a Dividend Aristocrat that has increased its dividend for 35 consecutive years. However, it is only one of seven Dividend Aristocrats that I consider attractively valued in light of the current bull market. Therefore, this will be the first in a series of seven articles where I will cover these seven attractively valued Dividend Aristocrats.

Six Tips to Take DC Plans to the Next Level

Tax reform. Interest-rate hikes. Regulatory questions. Inflation. There’s always a reason to put off making changes to your company’s defined contribution (DC) plan. But some improvements will be good for your plan and participants no matter what happens.

On My Radar: Global Macro Outlook & Probable 7-, 10- and 12-Year Equity Market Returns

This week’s On My Radar is an investment outlook piece. While current trend evidence remains bullish, you’ll see valuation data below that tells us the coming 7-, 10- and 12-year equity market returns are not so good. Your and my clients are expecting 10% forward returns; however, due to extremely high valuations they are likely get 0% to 2%. Trouble spots? There are many.

Weighing the Week Ahead: Is This as Good as It Gets?

Last week I wrote that there was so much on the calendar that it was impossible to choose a single theme. This week presents the opposite problem. In the wake of the big news, what will command attention? As I studied the data, I was struck by the confluence of record results.

Slaughtering the High-Dividend Sacred Cow

At least for tax-advantaged investors, dividends are irrelevant: They are neither good nor bad in terms of forward-looking return expectations. Therefore, while there is no reason to exclude dividend-paying stocks, focusing solely on them leads to less diversified (less efficient) portfolios.

The Case for International Dividend Quality – Offsetting Home Country Bias with Quality

For decades, dividend income has been a crucial component of a stock investor’s total return, often surpassing capital appreciation in volatile markets for many investors. However, blindly focusing on yield in the international sector could be dangerous to an investment portfolio’s health.

Often, a seemingly generous dividend yield may actually signify a weak share price tied to negative news not yet revealed in the quarterly dividend. This is why we believe investors in international dividend stocks must be confident that the dividend being paid is sustainable over the long term.

Retirement Income Planning Takes a Flexible Approach

If you are like many people, you probably have put plenty of thought into what your ideal retirement would look like. Maybe it involves exotic travel, pursuing a favorite hobby or spending more time with friends and family.

My Proposed Bet with Buffett

Here’s a new bet with Warren Buffett based on a portfolio oriented around risk parity and factors.

Long-Short Factor Investing

Here’s what investors consider when deciding whether to invest in long-only or long-short factor strategies, including relative and absolute return goals.

Weighing the Week Ahead: Where is the Fear?

With a light economic calendar, there is plenty of air time for pundit pontification. The record-setting market still has many shaking their heads. Many, after noting the many world problems, are asking: Where is the fear?

The Ten Worst Mistakes Advisors Make

I’ve seen many positive changes in the advisory business over the past three decades. Fees have gone down and diversification has gone up. Advisors are a large part of the reason flows are moving from expensive active to low-cost passive funds. This has been good for our clients. Still, we have further to go, and having advisors address these 10 failures in their practices will help us get there.

Quarterly Update: October 2017

The modest growth rate is contributing to the length of the current economic expansion, and American households are in the best financial shape in years. Our 3Q17 Quarterly Update report discusses the economic expansion and its impact on equities, fixed income, and more.

Can Momentum Investing Be Saved?

Momentum is one of the most compelling factors in theoretical long–short paper portfolios, but live results of momentum strategies fall short of theoretical returns. Thoughtful implementation, a careful sell discipline, and an avoidance of stocks with stale momentum can narrow the gap between paper and live results.

Q4 Market Outlook: Six Trends to Watch

Last quarter saw stocks globally continue to rise. The relatively accommodative monetary policy environment and improved global growth were strong drivers. However, as we head into the fourth quarter, I think it’s important that we recognize the potential for greater disruption — in terms of both geopolitics and monetary policy — which can cause greater volatility in capital markets.

The Science and Art of Multi-Asset Investing

Generating consistent returns under uncertain conditions is a challenge. Can multi-asset strategies make the job a little easier? We think so. But a lot depends on how they’re designed.