Global Equity Valuations
The global equity markets continue to experience disappointing returns. In discussions with clients, my advice is a reminder that the research shows that developing a strategic asset allocation plan and staying the course through rebalancing is the prudent course of action. The European sovereign debt crisis is in its third year and continues to create […]
Retirement Income Strategies
I was recently challenged by an investor couple attempting to determine the amount of annual spending they can make based on their portfolio. How, they asked, can we make a rational decision when we do not know the future return in investment markets, the future rate of inflation or their life expectancy? My general rule […]
More on Portfolio Inflation Strategies
\A May 2011 lengthy article by Gahagan and Martin, suggests a modest, permanent allocation to inflation-hedging -assets , such as TIPS, commodity futures, and REITs. The interesting part of the article is a discussion of how different inflation-hedging assets perform across the inflation cycle. For example, TIPS perform best in an inflationary period of less […]
Hedging Inflation: Comparing Commodity Futures and TIPs
I have generally recommended the use of Treasury Inflation Protected Securities (TIPs) as a hedge against inflation. Are Commodity Futures an attractive inflation hedge similar to TIPs? In a March 2011 article, author Geetesh Bhardwaj, addresses the use of various investments as a hedge against unexpected inflation. (Let me know if you would like a […]
Combating Investor Overconfidence
In my discussions with clients and prospects, one of the recurring themes is how, as their investment advisor, I can best provide advice contrary to their bias, intuition, or reaction to current business/economic events. An example is the current investor bias toward equities since the stock market has performed so well recently and bonds are […]
Investing for Retirement Income – Part 1
A sense of security comes from seeing a regular monthly income from your investment portfolio. Especially when one is retired or is dependent on investment income to meet everyday expenses. In the investment community, bonds are considered second class citizens. Investors are told that holding bond funds is done primarily to reduce the overall portfolio […]
