Monthly Archives: November 2012

Tactical Investing’s Failure in 2012 (and why we still can’t predict the future)

(This post is in response to Josh Brown, aka The Reformed Broker’s post today titled A Graveyard for Tacticians.  You can read the original post in its entirety here: http://www.thereformedbroker.com/2012/11/30/a-graveyard-for-tacticians/) Josh has a great piece up today demonstrating how absolutely fruitless tactical investing (let’s just call it market timing, ok?) can be in practice.  Most of these […]

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About that “Analyst Report” your broker just read.

Wonder if it was written by this guy? This is Morgan Stanley’s analyst report on Lehman Brothers (LEH) on June 30th, 2008.  Two months later LEH filed for the largest corporate bankruptcy in history and stockholders were wiped out. On June 30th: 2) LEH was at $22.25 3) Target price: $31.00 Note the “Overweight” rating […]

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Obscenely high fund fees? Just hide ’em!

Managed futures funds are among the hottest “alternative investments” available through a mutual fund chassis right now.  The funds part out assets to Commodity Trading Advisors who speculate and trade in financial and commodity futures contracts.  These CTAs rarely make long-term investments but instead employ high-turnover strategies in an attempt to out-trade their competition. These […]

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Everyone is guilty – Charles Ellis on underperformance of active managers

(Aside – Charles Ellis is brilliant and those interested in the active vs. passive debate should be sure to pick up his book “Winning the Losers Game: Timeless Strategies for Successful Investing.” Additional disclosure: Ellis serves as a director to Vanguard, whose products we recommend for client portfolios.) In the most recent Financial Analyst’s Journal, the […]

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Why Investment Management still falls short of a profession

Doctors, Lawyers, CPAs. More than just what your father wanted you to be when you grew up.  They are our professions. Generally, trusted advisors who have advanced degrees and we recognize their expertise.  We recognize that these individuals are professionals, trusted to give their best advice to patients and clients. For a number of reasons, […]

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Why the election doesn’t matter for your portfolio

(It is 7:24am MST on 11/6/12.  Polls in Colorado and in most of the nation are open). If you’re investing, it is for the long term.  Everything else is speculating. And investing should mean a very broadly diversified global portfolio of equities and bonds. So what are the long-term factors for investment success?  One of […]

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Gross to advisors: use my fund!

I about spit my coffee onto my screen when I read this gem of a headline from IndexUniverse.com: “Bill Gross: Dump BND & AGG; Buy BOND “ (full story here, published 9/20/12) This is just too good to pass up.  At IndexUniverse’s Inside Fixed Income conference, Gross stood up and declared that his strategy ($BOND, […]

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