I’m posting an e-mail I received this morning about what the CFA Institute has been lobbying for with regards to relevant financial regulatory reform. It highlights the CFA Institute’s commitment to the integrity of the financial industry and the investment advisory profession. It also highlight the aspects of the bill that are the most important for consideration, to help further better operating markets in the future: Dear CFA Institute Member:…
This is a great article from Morningstar about “Understanding Currency Risk”. In my reviews with clients I am constantly discussing the currency risk exposure we have in some of our investments. Namely, the Capital World Bond Fund from American Funds. However, as this article points out, the same currency risk can be seen in other securities as well, including stock funds. So, while the Euro is down about 12% in…
I think this is a very insightful (and not overdone) article about investor psychology and what could trigger the next market panic. Most of the items listed here I agree with, except maybe for the technical “death cross”, which is primarily due to that fact that I don’t subscribe to technical analysis. I’ve pasted the article from RIABiz.com, an industry news source, and its guest columnist Rob Isbitts (June 15,…
This opinion article from The Economist highlights the precarious fiscal positions of governments around the world. While these governments have largely been successful in staving off a deeper financial crisis last year by coordinating efforts to stabilize banks and the financial sector, they are now themselves a risk. It highlights the difference in fiscal situations between Germany, UK and the US. Notably, the US has the most wiggle room fiscally…
Below is a link to a Bloomberg article that highlights the recent report from The Institue for Supply Management-Chicago Inc. It publishes a business barometer that signals economic expansion or contraction, depending on whether the number is over 50 or below 50, respectively. Its latest number is 59.7 and shows, while the Euro-zone continues to cause much uncertainty for the global markets, the US recovery is still on track. (Click…
Most investors don’t know what the “fiduciary standard” means. In short, it means the adviser is looking out for the best interest of its clients at all times and will/must disclose any conflicts of interest that arise from the adviser’s business dealings. As a registered investment adviser Bear Mountain Capital is subject to this “fiduciary standard”. However, the main wire-house firms (Morgan Stanley, UBS, Merrill/BofA, etc.) are not… nor are…
I’m posting an article a friend turned me on to. It is published by Mark Heschmeyer of the CoStar Group. There is a lot of discussion regarding a double dip recession, with some claiming that the catalyst for the second leg down will be the implosion of the commercial real estate market. This article points to a different trend, showing that there is a healthy amount of activity in the…
This is an article from Morningstar.com on Roth IRA Conversions. It notes the significant change in tax law for Roth IRA’s for 2010. (Click Here to Read Article from Morningstar.com)
The CFA Institute dedicates an entire session to what drives investors behaviors. There are three themes to this topic and I’m going to highlight the first theme they focus on in this post: Heuristic-driven bias. Its a fascinating subject matter primarily because all investors, whether they be inexperienced or sophisticated, fall prey to these bias’ during their investing lifetime. Guarding against them is an ongoing endeavor. Heuristic-driven bias is based…
Below is a link to a Morningstar article discussing Jack Bogle (founder of Vanguard) and his perspective on investing. There are some very good points that I have also put forward when selecting funds for clients portfolios, they inlcude: ” Choose low-cost funds; don’t chase hot returns or managers; look for consistency, tax efficiency, and evidence of risk control…” Where we do not agree is his perspective on the role…
