A popular song and a recent article in The Wall Street Journal reminded us of Edmund Burke’s quote and how important history is to the long-term success of common stock ownership.

We revisit this “Who do you trust” meme this morning because of what I have been saying the past few weeks. After identifying the selling climax low of December 24, when 48.5% of stocks made new lows, I recorded two 90% upside days (90% of volume and upticks came on the upside).

In this issue, Research Affiliates assesses the potential impact of a bear market in U.S. stocks on emerging markets and discusses regulatory reporting requirements.

Public pension plans are destroying investors’ wealth by allocating assets to separate account managers, private equity and hedge funds.

Early on in my career, I learned there are four psychological reasons investors buy (listed from strongest to weakest).

Today’s late-cycle environment gives investors an opportunity to re-evaluate the risk and return potential of their portfolios. Since the depth of the financial crisis, core stock and bond allocations have delivered exceptional returns with modest volatility. But future returns will likely be muted even as risk increases.

While investors should be cognizant of the complexities and risks around Brexit, they should be just as aware of the opportunities in select U.K.-based businesses.

Unexamined thinking about where numbers come from and how they work will lead to dangerous math mistakes. This article will show how to make your advice less precise but more helpful.

So, I need to apologize to everyone for not being able to do a verbal recorded call last week, or write a missive the last three sessions of the week. The problem was that while in NYC my media events began around 6:00 a.m., followed by more media events, then it was portfolio manager meetings.

How can an individual build a defined-benefit element into his or her retirement-income portfolio? Is there a way to structure a floor income during retirement that can’t be outlived?

Last year was a watershed in the size of official gold purchases, as central banks added 651.5 tonnes to their holdings. Not only is this a remarkable 74 percent change from 2017, but it’s also the most on record going back to 1971.

Is money market fund AUM growth signaling changing expectations?

Harold Evensky's quarterly letter to his readers.

We’ve collected the following tributes to Jack Bogle from among the authors who contribute to Advisor Perspectives and other prominent individuals in the investment industry.

Investors are likely looking at their portfolios and trying to determine how the volatile fourth quarter impacted their returns and how it impacted progress toward their financial goals. Having the market (Russell 3000® Index) pull back -14% in a single quarter and drop -5% for the year is tough, but for taxable investors, the possible tax hit will add insult to injury.

"Time is Archimedes’ Lever in Investing - Archimedes is often quoted as saying, 'Give me a lever long enough and I can move the earth.' In investing, that lever is time. The length of time investments will be held, the period of time over which investment results will be measured and judged, is the single most powerful factor in any investment program.

Global airlines are expected to log their 10th straight year of profitability—an industry first. And with incomes expanding worldwide, air travel demand is projected to outpace economic growth for the next couple of decades.

In a new quarterly letter to GMO’s clients, head of asset allocation Ben Inker looks back on a confounding 2018 and discusses how to assemble a portfolio of attractive assets looking ahead.

Will emerging markets stocks rebound in 2019? Attractive valuations, strong forecast earnings growth, structural reforms, and an abating dollar headwind suggest they will.

Asset allocation proposals--helping an investor visualize how a particular asset allocation can best help them meet their goals--are a mainstay of winning new clients. But proposals can also be used to generate new business from existing clients. One way is through introducing the concept of asset location: allocating assets across the various accounts within a household to be more tax-efficient.

Ned Davis wrote the book “Being Right or Making Money” in 1991. As most of you know, Ned is one of the best on Wall Street. The book resides on my desk, because I often refer to it.

Alma Volker scribbled the note, quoted above, in the margin of a 1911 economics textbook, Outlines of Economics, written by Vassar College Professor Herbert Elmer Mills. Later her son, Paul Volker, who has served six presidents over his long career in public service, shared his regret of never discussing economics with his Mom in his recent book Keeping At It.

It appears the “Powell Put” has been exercised as the Fed chief declares no “pre-set” course on rates and no “hesitation” to change its balance sheet runoff. But does the economy still need Fed accommodation, or do markets just want it?

2018 will be broadly remembered as a year when nothing worked and daily stock market volatility spiked. This contrasted with 2017 where seemingly everything pushed higher, and volatility was low. But in 2018, nearly every single asset class and all but one major stock market index (Brazil) around the globe posted negative returns.

Stock market participants for most of the past few years have eschewed protection. It was all about making large amount of gains. Almost every advisor lost clients from “cocktail party” conversations about who had made the most money recently.

Recently, much has been written, and said, about a retest. The reference is about the major indices pulling back to their recent December closing lows, creating a double-bottom in the charts.

Everyone knows how to win. Few know how to lose. Yet the secret to making money in the various markets is knowing how to lose. How to control your losses.

Today I’ll look at the conventional wisdom that the tax burden of an investment strategy increases with its turnover. In addition, I’ll discuss why short selling is perceived to be particularly tax inefficient.

Jeffrey Gundlach said that 2019 will mark the start of a period when bond markets must reckon with the rising federal deficit. In his most passionate comments ever on this topic, he said the exploding national debt and liabilities involving pension funds, state and local government governments and Social Security have reached a stage that is “totally unthinkable.”

Keeping an eye on how the municipal bond calendar will influence new issues and investing opportunities is wise advice. With the muni market expected to remain robust in 2019, investors and their advisors need to watch the calendar for new issues that best meet their specific financial goals and investment strategies.

One of the possible implications of a less aggressive Fed in 2019 is a weaker dollar. And once the dollar starts to lose ground relative to other world currencies, the price of gold could rocket up to as much as $1,500 in the blink of an eye.

I expect to spend this year Living Dangerously. Yes, I’m thinking of the 1982 film starring a very youthful Mel Gibson and Sigourney Weaver, based on an earlier Christopher Koch novel. It has an Asian setting and features corrupt politics, neophyte journalists, international intrigue plus a gender-bending Chinese dwarf. If you aren’t sure how all those fit together, then welcome to 2019. We are all stuck in this craziness and can only make the best of it.

Just seven short weeks ago, the floating-rate loan market was standing tall with a 4.0% year-to-date return through October. Not only were loans on pace for the 5%+ calendar year mark that many anticipated, they had performed with remarkably low volatility and a performance profile that trumped all major asset classes.

The U.S. Federal Reserve has roiled markets with its latest rate hike and comments from Chairman Jerome Powell, who disappointed many investors as insufficiently dovish in his December 19 remarks.

Equity markets send a timely reminder about diversifying into alternatives.

Looking back over the past 12 months, I’m not surprised to see that my five most popular and widely shared posts of 2018 involve gold (with one exception). With many stocks falling into correction territory or worse, the yellow metal emerged as a standout asset in the fourth quarter on safe haven demand.

With only one trading day left in 2018, the price of gold has so far beaten the S&P 500 Index for the month of December, the fourth quarter and the year. What might surprise some readers is that it’s also outperformed the market for the century.

Watch out indeed, for 2017’s December low was violated in February 2018 and the rest, as they say, is history. Accordingly, it will be interesting to see what the December Low Indicator says in 2019.

As global markets increasingly ponder how long US economic growth can continue, Franklin Equity Group’s Ed Lugo says he’s looking for potential investment opportunities outside the United States. He explains why he sees opportunities in Europe and Asia, despite concerns about Brexit negotiations and a slowing Chinese economy.

Global markets are jittery as we start the new year with the same volatility drivers in place as last year. In our view, it's time for your clients to expect and prepare for periodic bouts of volatility.

Gold is back! So far this quarter, the yellow metal has crushed the market, returning around 6 percent versus negative 15 percent for the S&P 500 Index. Gold miners, though, have been the top performer, climbing a phenomenal 12.3 percent.

In spite of its recent track record, value is not dead. It’s just been wounded a few times since the financial crisis, as investors favored growth-oriented segments of the market amidst easy monetary policy.

Commodity traders appear excited about gold again as stocks are on pace for their worst year since 2008, and their worst December since 1931.

Early last week we published our collective 2019 outlook summary and today’s report will put some more visual meat on the bones of that summary.

Recently, our email box has been filled up with questions like this one from one particularly bright Raymond James financial advisor, namely, Michael McCormick of the venerable Chicago-based money management firm of McCormick Retirement Group, who wrote, and we responded...

One of the most remarkable trends in the financial markets has been the decline of publicly traded U.S. equities. About half as many stocks are listed as there were 25 years ago. What is driving this phenomenon and what are the implications for investors?

Recent fundamental changes in the leveraged finance markets mean that actively managing credit exposure is more important than ever.

It is important to remember, that “Risk” is simply the function of how much you will lose when you are wrong in your assumptions. 2018 has been a year of predictions gone horribly wrong.

Wheaton Precious Metals announced that it reached a settlement with the Canadian Revenue Agency (CRA), the equivalent of the IRS. “We expect the stock to react positively to the news given the tax dispute was an overhang,” Credit Suisse analysts shared in a note to investors today.

The trade conflict and Fed rate policy are buffeting markets at a time China was already grappling with debt challenges at home. But the volatility may be masking good economic fundamentals globally, reform efforts in China, and attractive investment opportunities.