To Be, or Not to Be: Bullish click for ginormous graphic Source: MARKet Perspectives May 2018, Mark A. Lehmann, Global Strategist Portfolio Management My friend Mark Lehmann has been a strategist at UBS for decades; his research (rarely available to the public) is always fascinating and thought-provoking. The chart above is a perfect… Read More The post Bull Markets & P/E Multiple Expansion appeared first on The Big Picture.
I will be speaking today at the Vanguard Connect event on the Malvern HQ campus in Pennsylvania. It is a privilege being the only person invited to present to their troops who is not a Vanguard employee. Our topic today will cover everything from having an ensemble practice, creating portfolios, how we systemize everything,… Read More The post Vanguard Group Connect Conference appeared first on The Big Picture.
How to Avoid Getting Sick From Financial Markets Start with understanding what can, and cannot, be controlled. Bloomberg, June 20, 2018 Major stock indexes have given up much of their year-to-date gains after the past several days of selling. The year is days away from being half over, and the Standard & Poor’s… Read More The post Market Crashes are bad for your health appeared first on The Big Picture.
“How do you guys have time to manage money, between tweeting and writing and tv and radio?” This question comes along surprisingly often. (I would argue it is precisely backwards). It fundamentally misunderstands the composition of an RIA portfolio and what a financial planning firms should be focused on. It imagines a daily grind where… Read More The post Our Exorbitant Privilege appeared first on The Big Picture.
Michael Batnick, Ritholtz Wealth Management director of research, discusses investing mistakes by the likes of Warren Buffett and Stanley Druckenmiller and how hard it is to beat the market. How the best investors reacted to their worst investments How the best investors reacted to their worst investments from CNBC. Source: CNBC The post The Best Investors’ Worst Investments appeared first on The Big Picture.
Why to Keep Your Inflation Anxiety in Check Yes, prices are rising faster, but all signs suggest it won’t amount to much. Bloomberg, June 18, 2018 For those feeling the vague pangs of inflation anxiety — nothing special, just the plain-old-run-of-the-mill cost of living price increases — this one is for you. This… Read More The post Why Inflation Is Not a Problem (Yet) appeared first on The Big Picture.
It’s alarmingly easy for a total stranger to gain total control over the life of a senior citizen. We enlisted a group of celebrities to offer a warning about predatory behavior…in a legal guardian or a hippo. Guardianship: Last Week Tonight with John Oliver Source: HBO The post John Oliver on Guardianship appeared first on The Big Picture.
Ranking What Helps or Hurts Investment Returns …. Bloomberg, June 11. 2018 What drives the returns of any portfolio? Specifically, from the moment someone starts saving for retirement, until the day they begin to take their required minimum distribution at age 70½, what are the factors[i] that determine just how successful that portfolio… Read More The post Hierarchy of Portfolio Success appeared first on The Big Picture.
I have been thinking about an intriguing issue: Where do returns come from? No, not which Fama-French factors are a source of outperformance, but rather, in the real world, what is it that leads any given portfolio to achieve a satisfactory level of returns relative to all of the surrounding events? Its a nuanced and… Read More The post What Determines How Well Any Portfolio Performs? appeared first on The Big Picture.
Smart Beta Performance Isn’t Worth the Cost The higher fees offset sporadically better returns. Bloomberg, June 8, 2018 Last summer, we looked at fundamental indexing, which is perhaps better known by the catchy marketing phrase “smart beta.”1 The practice uses metrics such as book value, earnings and dividend yield to assemble investment portfolios,… Read More The post Is Smart Beta Having Performance Issues? appeared first on The Big Picture.
This afternoon, I am speaking at the Inside Smart Beta Conference, playing the role of curious skeptic in the room. ETF.com’s CEO Dave Nadig is going to grill me on why we have not moved $850 million of client assets into Smart Beta holdings. A few caveats are in order: First, I find the term “Passive… Read More The post Elephant in the Smart Beta Room appeared first on The Big Picture.
I am thrilled to welcome the latest addition to the RWM team, Blair duQuesnay. I know Blair for over 15 years (we both worked in the Chrysler Building in NYC years ago). She brings a lot to the table for our firm: CFA, CFP and IAR,* all important qualifications for the senior roles we have in… Read More The post Welcome, Blair duQuesnay! appeared first on The Big Picture.
Via Mark Rzepczynski, we get a brilliant reminder that the issues concerning most investors are for the most part, not surprises to Mr. Market. Long before something makes it to the front page news, or even C6, someone else saw something and acted upon it already. By the time something has been published, it has… Read More The post News is Old appeared first on The Big Picture.
Never Mind the Millionaires. Here’s Advice From Billionaires. The richest offer life lessons about how they got where they are. Bloomberg, May 25, 2018 Last month, I described an email that promised vast riches if I would adopt “The Millionaire Mindset.” This is the sort of silly wishful thinking I hate:… Read More The post Ignore the Millionaire Mindset; Try the Billionaire Behavior Set Instead appeared first on The Big Picture.
Ed Yardeni is the president of Yardeni Research Inc., a provider of independent global investment strategy research. Previously, he was chief investment strategist and managing director of Prudential Equity Group; he also served as chief investment strategist for Deutsche Bank. Yardeni recently published “Predicting the Markets: A Professional Autobiography.” He discusses why pessimistic economists miss technological… Read More The post MIB: Dr. Ed Yardeni appeared first on The Big Picture.
How Public Pensions Can Start Healing Themselves A series of questions and answers can help. Bloomberg, May 21, 2018 Our discussion last week about representatives of the League of California Cities urging the CalPERS, the state’s huge pension fund for public employees, to juice up investment returns generated a lot of interesting feedback.… Read More The post Advice for Pension Funds and Endowments appeared first on The Big Picture.
The Markets Don’t Care About Your Wants or Needs Thinking outside the box probably is a mistake. Bloomberg, May 18, 2018 You may have reasonable expectations of what you can expect from your investments during the coming years and decades. But regardless of what your risk-adjusted return expectations are, the first rule of economics… Read More The post Mr. Market is “Your Needs” Agnostic appeared first on The Big Picture.