People need to change the way they think about buying assets during a panic, argues the author of today’s article, who notes that “Despite the seemingly obvious upside to buying during the current panic, many investors (even those sitting on lots of cash) are afraid to do so. This seems to be partially an issue with uncertainty around a further decline, but it also seems to be a framing issue as well.” How can investors go about “reframing the upside”? CLICK HERE.
With the bull market in its 10th year, the stock market challenging all-time highs, and assorted economic and political concerns, investors may be considering rotating out of growth stocks and into value stocks – but the author of today’s article advises “value investors had better be very cautious about what sort of ‘value’ they are looking for”, noting that “they often ignore or overlook the signs that a value trap is just about to eat into their assets.” He proceeds to outline “11 specific areas that investors need to consider when it comes to value investing now that the stock market has again challenged new all-time highs.” For more, CLICK HERE.
“Asset allocation is typically the most important aspect of portfolio management so understanding how the various asset classes performed is instructive when trying to understand your results,” explains the author of today’s article before sharing his updated “asset allocation quilt” – which shows the returns (and respective rankings) for each asset class for each of the past 10 years – and some important takeaways from it. What insights can be gained from the inclusion of 2018’s returns in the quilt? CLICK HERE.
Fear-driven selloffs in the market are powerful phenomena, but, as the author of today’s article notes, “for those who can tune out the fearful noise and focus on the fundamentals of beaten down, high-quality companies, great returns can be at hand.” He proceeds to highlight what he sees as an irrational selloff in process right now – and which may present an opportunity. Specifically, this is the selloff among asset managers, where many of the most well-known names are down double digits from their 52-week highs. For more, CLICK HERE.
While the trading of cryptocurrency assets is garnering a great deal of interest, today’s article notes that some investors are looking to be able to trade traditional assets – such as stocks, bonds, options and gold – in the same manner – and the author proceeds to highlight “three new operators [that] are among those developing trading platforms to meet this need, with blockchain-based tokens pegged to the underlying assets.” To read more about these three up-and-coming trading platforms, CLICK HERE.
At the recent Abu Dhabi Petroleum Exhibition & Conference a number of senior oil executives agreed that, come this time next year, the price of crude oil will essentially be where it is today – around $60 a barrel. The author of today’s article, however, disagrees with that forecast, predicting that oil will have risen to $80 a barrel by November 2018. Why does he believe that the decline in volatility seen in other assets will not necessarily apply to oil? CLICK HERE.
Be it value, growth, momentum, size, low volatility, some blend thereof – or something else entirely, factor investment strategies have been gaining popularity. In fact, one survey conducted this year found that almost half of asset owners reported using some kind of smart-beta strategy in their asset allocation. So why does the author of today’s article liken the use of factor strategies by some investors to the use of drugs by addicts? CLICK HERE.
If you knew that a series of economic crises were going to begin in less than 24 hours, in which of these five asset classes would you invest money for a 10-year period: real estate, gold, bonds, stocks or cash? According to one survey, the “investment of choice” of Americans is real estate – a choice that the author of today’s article sees as severely misguided. What do the returns of these asset classes for the 10-year period starting October 2007 indicate about where one’s money would be best placed? CLICK HERE.
“Finding deals is no easy task in this type of market,” acknowledges the author of today’s article. But for those willing to do a little dumpster diving in the hunt for potential deals, he proceeds to identify what are among the worst-performing asset classes (and worst-performing stocks and funds within those asset classes) of the past three years. What are these asset classes, stocks and funds – and what does the author advise is the critical question investors should ask themselves “when sorting through the bargain bin”? CLICK HERE.
Will it be cryptocurrencies? Low-volatility plays? Internet retailers? Something else? An investment strategist at Charles Schwab has attempted to identify the asset class where the next potentially damaging bubble could emerge – risking the portfolios of not only investors with significant exposure to that particular asset, but all investors. What is his conclusion after analyzing the most popular candidates for bubbles against the classic profile of a potentially damaging bubble – and what are the implications for investors? CLICK HERE to find out.