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Results 51–88
of 88 found.
NASCAR, Firefighting, and Investing
by Roger Nusbaum of AdvisorShares,
Over the weekend at the Geico 500 at the Talladega Superspeedway, the underside of the Number 3 car driven by Austin Dillon caught fire in spectacular fashion. Someone on Dillon’s pit crew advised him to keep driving to the point where one of the racetrack fire crews was positioned which resulted in an instantaneous response and faster suppression of the flames.
Social Security & Portfolio Withdrawals; It’s Complicated
by Roger Nusbaum of AdvisorShares,
The Wall Street Journal ran a blog post that outlined Michael Kitces’ argument for delaying Social Security which can be summed up by saying it should be thought of it as an asset in a portfolio so by waiting, the value of your asset grows.
The Active/Passive Debate: Others Weigh In
by Roger Nusbaum of AdvisorShares,
In the most recent AdvisorShares Alpha Call Josh Brown and Michael Batnick from Ritholtz Wealth Management discussed at length the importance finding the right strategy and then taking the time to understand the strengths and weaknesses of whatever you decide is the right strategy.
Is a Lost Decade for Performance Coming?
by Roger Nusbaum of AdvisorShares,
Game plan the composition of your portfolio for the long term. There will be periods of generally good performance in the market (this will be most of the time) and the occasional declines (12-18 months is a normal duration) and a portfolio’s strategy and composition need to account for cycles and rotating performance leadership. No segment of the market can be the best for all times.
The Active Passive Debate Evolves by Necessity
by Roger Nusbaum of AdvisorShares,
Daily Alts took a stab at the topic of evolving asset allocation and the blurring of the line between active and passive citing work/theory done by Eaton Vance. As a starting point, and something we’ve been talking about here for several years, the basic 60/40 may be losing some of its effectiveness especially on the 40 side, the fixed income portion, because interest rates are so low and as we learned from the most recent Fed statement may stay lower for longer. The article also considered a blurring of the line between active and passive management.
The Benefits of Tiny Withdrawal Rates
by Roger Nusbaum of AdvisorShares,
For about the last year we have been blogging about the concept known as tiny houses. In that time interest has proliferated in terms of new websites devoted to the concept as well as at least four TV shows about tiny houses. The show Portlandia just had a bit making fun of tiny houses in a sketch where the toilet and the office were the same space as was the bathtub/shower and TV area.
Hedge Funds on the Comeback?
by Roger Nusbaum of AdvisorShares,
A few days ago I stumbled across a post from CIO titled Reports Of My Death Have Been Greatly Exaggerated that chronicles the outflows from hedge funds last year and posits whether a comeback might be around the corner but with generally lower fees. The lower fee angle of the article seemed to focus on negotiating a lower fee with the manager. Of course lower fees are available through the various exchange traded products that one way or another replicate the exposure but doing so without the so called ‘2 and 20’ fee structure.
Loan Fund Primer
by Roger Nusbaum of AdvisorShares,
Last week the Riksbank (the Swedish central bank) dropped its benchmark interest rate to -0.10 and as of earlier this week Sweden’s ten year sovereign debt was yielding 0.50%. So Sweden is now the latest country to make headlines about extreme central bank policy to stimulate growth.
The Trouble With Zero
by Roger Nusbaum of AdvisorShares,
We have watched the decline in crude noting the slow decline that started in June that then turned into a crash starting at around $75 at Thanksgiving. The circumstances of crashes are always “different” but the market action is very similar almost every time and the oil market is showing the same pattern for now.
Retirement Realities and Contingencies
by Roger Nusbaum of AdvisorShares,
Stites on Estates took an interesting look at retirement intentions versus retirement reality along with a reiteration of the dismal statistics about how little savings people who are working have accumulated as well as how few dollars people have put away when beginning their retirement.
The Benefits of Proper Risk Budgeting
by Roger Nusbaum of AdvisorShares,
William J. Bernstein had an interesting op-ed in the Wall Street Journal titled How To Tell If Your Retirement Nest Egg Is Big Enough. Anytime the term nest egg pops up in a post I feel compelled to make the Lost in America reference when Julie Hagerty loses the nest egg at the tables in Las Vegas almost immediately after they hit the road and Albert Brooks tells her to never use the words nest and egg in the same sentence ever again.
11 Investing and Personal Finance Hacks
by Roger Nusbaum of AdvisorShares,
You?ve probably seen one or two of the listy articles about life hacks which are little tricks that can make the day to day routine a little easier. Some are for very mundane aspects of life like using a paper clip to mark the spot where the roll of tape starts or laying a wooden spoon across a pot of boiling water to prevent it from boiling over. I saw one of these lists a few days go where one of the hacks was a little off the beaten track, suggesting you always carry bolt cutters with you.
Barron?s Makes The Case For Active Management
by Roger Nusbaum of AdvisorShares,
The Barron?s cover story made the case for active management outperforming passive indexing when interest rates rise citing the history that supports the notion from past periods of rising rates with the underlying logic being that ?rising rates go hand-in-hand with outperformance of smaller stocks, which active managers tend to favor? as well as part of active management including what to avoid which is a concept we have discussed here many times before.
How Can The Bond Bull Keep Going?
by Roger Nusbaum of AdvisorShares,
In our Weekly Market Update we have made an effort to track the deflationary story being told in the global fixed income markets, specifically sovereign yields have continued to trade lower defying what most investors thought was possible; Swiss 10 year debt recently yielded 25 basis points. A while back I quoted a Seth Klarman Tweet about German debt trading at multi-century low yields.
MLPs Werent Supposed To Decline
by Roger Nusbaum of AdvisorShares,
Most income investors will know at least a little about Master Limited Partnerships more commonly referred to as MLPs. Most MLPs are tied to the transportation of energy products. They collect royalties as the energy product moves through their pipeline (this is a very common structure). Fundamentally, the movement of MLPs should not be vulnerable to price movements of the underlying energy product. The royalty collected is what it is.
Jorge Posadas (Financial) Slump
by Roger Nusbaum of AdvisorShares,
Add Yankee great, Jorge Posada to the long list of names of professional athletes who have been done in by their investment advisors. There are of course several accounts of this around the web but according to the NY Post he lost millions on a real estate deal and in a hedge fund run by his advisors. The Post implies he has not been totally wiped out but that Posada and his wife, who are referred to as nave in the article, have taken a meaningful blow to their net worth.
Grandma Got Run Over By A Dividend Portfolio
by Roger Nusbaum of AdvisorShares,
Forbes had a very short article titled High Yield Grandma which offers a brief profile of a woman who has overcome a few setbacks and has a very substantial investment portfolio worth $3 million. As the clever title implies she focuses on dividend stocks.
The All Everything Portfolio? No Such Thing
by Roger Nusbaum of AdvisorShares,
Barry Ritholtz has had some good fun torching Tony Robbins All Weather Portfolio for having too much in bonds and commodities as well as being to backward looking and being put forth as a one size fits all. The latest was in his WaPo column dated December 5, 2014.
Learning From Mistakes Made By Pension Funds
by Roger Nusbaum of AdvisorShares,
Forbes took a look at How Pension Funds Make Investing Too Complex. The issue was hedge funds and private equity funds that tend to be expensive, opaque or both. These types of direct investments also tend to be illiquid in terms of having long waiting periods before investors can get their money out.
Experts Weigh In On Solving Retirement
by Roger Nusbaum of AdvisorShares,
There were a couple of very interesting retirement articles posted last week that are worth pointing out. The first on was from the LA Times and focused on research and comments on the research from Alicia Munnell from the Boston College Center for Retirement Research which, cutting to the chase, concludes most people will not have the retirement they hope for in financial terms.
A Yield Play Without Any Yield?
by Roger Nusbaum of AdvisorShares,
On Friday a recently launched IPO fell about 15% on an earnings report that was poorly received by markets leaving the stock down 39% since its first day of trading in June. Naming names becomes difficult for compliance reasons but as a hint it is an infrastructure name and you would probably need to read the name two or three times to figure out the word.
Alternative Investments: The Right Expectations
by Roger Nusbaum of AdvisorShares,
Every year around this time we hear about the fiscal year investment results for the various college endowments and typically there is much written about the endowments and 2014 is no exception but this year most of the attention seems to be on the extent to which various forms of alternative investments have been a drag on endowment results after years of their having provided outsized gains.
The Media?s Incomplete Coverage of the Active/Passive Debate
by Roger Nusbaum of AdvisorShares,
Barron?s revisited the debate between active and passive portfolio management with it?s conclusion revealed in the article?s title; Go Active for Bonds, but Index Your Stocks. This is an important issue for market participants to explore and the revisit every so often.
What if Grantham is Right?
by Roger Nusbaum of AdvisorShares,
There were two articles recently both exploring the same possible outcome; that investor returns from capital markets could be much lower in the coming years. No matter what markets end up doing, advisory clients and do-it-yourselfers still have financial plans that likely require some amount of growth over time in order to have a chance of succeeding without something, such as desired lifestyle or working longer than hoped for, having to give.
IPOs: Hot Again
by Roger Nusbaum of AdvisorShares,
Last week the Wall Street Journal gave a rundown of what has been a very hot IPO market. The Journal reported that there were 42 listings in the first two months of 2014 compared to 20 from the same timeframe in 2013 and keep in mind 2013 was a very good year for IPOs.
Stanford Wonk Argues In Favor Of Levered Equity Funds
by Roger Nusbaum of AdvisorShares,
A long-time reader sent a link to an article from Forbes titled Leverage Your Way To A Richer Retirement. The article considered research done by Jason Scott at Financial Engines which looked at completely revamping the 4% rule (the 4% rule pertains to the optimal withdrawal rate for a retiree take from their portfolio without exhausting their funds).
The Important Role of Country Funds in a Diversified Portfolio
by Roger Nusbaum of AdvisorShares,
As most investors know, foreign equity markets have had a rough time of things performance-wise for the last couple of years relative to domestic equity markets. While Quantitative Easing may or may not be to blame, after years of generally outperforming the US in the previous decade the new decade has been a different story.
If You Can?t Retire at 30 Then How About 38?
by Roger Nusbaum of AdvisorShares,
A couple of weeks ago we looked at an article from MarketWatch about a couple, now 39, who ?retired? when they were 30. They live frugally, one way or another accumulated a pretty decent nest egg in their 20?s and took the time to become financially literate.
Investor Refresher (An Intersection of Investing and Firefighting)
by Roger Nusbaum of AdvisorShares,
Anyone who has read my blog for any length of time may recall my active involvement with the local volunteer fire department where I live in Northern Arizona. Occasionally my work in the investment industry intersects with some aspect of firefighting and one such intersection just occurred last week.
What Harvard Can Teach Us About Portfolio Management
by Roger Nusbaum of AdvisorShares,
The takeaway for advisors is the need to make sure clients truly understand their time horizons and that their portfolios are being navigated toward their time horizon versus responding to short term events like a Green Mountain Coffee (NASDAQ:GMCR) popping 30% on a deal with Coca Cola (NYSE:KO) or a stretch of poor returns for emerging markets.
A Decline in January Draws Attention to Portfolio Protection
by Roger Nusbaum of AdvisorShares,
January was a bumpy month for domestic equities as the S&P 500 declined by 3.5%. Perhaps the decline was influenced by the even larger decline in emerging markets, an earnings season that was viewed by some as disappointing or for no reason at all (markets dont always have a reason for what they do).
Bear Markets: Different Ingredients, Same Market Behaviors
by Roger Nusbaum of AdvisorShares,
While it is logical that markets are complex, the reality is that the level of complexity changes over time. The level of complexity started to increase last year when now former Fed Chairman Ben Bernanke first introduced the idea of what has come to be called tapering.
Do Portfolio Diversifiers Belong in Client Portfolios?
by Roger Nusbaum of AdvisorShares,
The big idea is that the stock market goes up more often than not but when it does go down it scares the hell out of clients. During these large declines some advisors will use tools like gold, hedge fund replicators, absolute return, market neutral, funds that sell short or any other products that tend to not look like the stock market to try to spare clients from the full effect of the decline.
Turning Asset Allocation Upside Down
by Roger Nusbaum of AdvisorShares,
After the second 50% drawdown of the US equity market in one decade, the investment industry began to reassess the idea of what asset allocation should look like. Unlike the 1980s and 1990s, financial professionals can no longer rely on an almost static 60/40 or 70/30, watch the equity portion triple in 15 or 20 years and then flip the whole thing to fixed income for a safe 6%.
Results 51–88
of 88 found.
