Category Archives: Equities

The Little Cousin to TIPS

We explored the topic of building a 30-year TIPS portfolio in a previous blog.  If the numbers we threw around seemed too big (USD 5,000 or USD 10,000 per year over a long period of time) for a Millennial, don’t lose heart.  The U.S. Series I Savings Bonds (or I Bonds) provide an easy way Read more […]

In Which Market Cycles Do Active Funds Add the Most Alpha?

Those who invest in active funds may expect portfolio managers to deliver excess returns over their benchmark indices for the fee they paid.  However, results from the SPIVA® (S&P Indices Versus Active) India Scorecard suggest this may not always be the case.  The scorecard, which is a biannual report, attempts to capture the performance of Read more […]

Active Fund Management in South Africa Continued to Struggle in 2016

Equity markets in South Africa, as measured by the S&P South Africa Domestic Shareholder Weighted (DSW) Index ZAR, increase 5% in 2016.  Aside from the GDP contraction experienced in the last quarter of 2016, conditions were generally improving in the country.  For example, the South African rand strengthened during the year and the municipal elections Read more […]

Diversification and Risk Management

Recently, I attended a session by an expert on good health.  I was pleasantly surprised to learn that besides diet and exercise, emotional and spiritual health is essential to a holistic lifestyle. When there are many elements to achieving a certain goal, it is of primary importance that each of those elements is included and Read more […]

Active Management Underperformance in 2016 Generally Higher Than in Previous Years

European equity markets, as measured by the S&P Europe 350, went up 3.44% in 2016, yet the average performance of active managers invested in Europe was negative, whether measured on an asset-weighted or equal-weighted basis.  Over the one-year period, more than 80% of active managers invested in European equities underperformed their respective S&P DJI benchmark. Read more […]

How Now The Dow? A Q1 Retrospective.

With March in our rear view mirror, let’s take a quick look at some highlights from the Dow Jones Industrial Average’s performance during the first quarter of 2017: In Short – The Dow Jones Industrial Average ended the first quarter of 2017 at 20,663.22 – up 900+ points for a 4.56% YTD return. Biggest Themes Read more […]

SPIVA® India Year-End 2016 Scorecard: Underperformance of Active Funds Versus S&P BSE Benchmark Indices

Various events during the second half of 2016, both global—such as the U.S. Federal Reserve rate hike and the U.S. elections—and domestic—such as passage of the GST bill in Parliament and demonetization—kept Indian markets volatile.  Over the one-year period ending December 2016, Indian equity markets underperformed Indian bond markets.  The S&P BSE 100, which seeks Read more […]

Rising Interest Rates – Boon or Bane for Pan Asian Dividend Strategies?

In December 2016, the U.S. Fed raised the interest rate for the second time in the current rate hike cycle.  Three more rate hikes were expected for this year, one of which took place in March.  In a low interest rate environment, companies that have increasing dividends or offer high dividend yields look attractive to Read more […]

Reading between the lines of China’s “Twin sessions”

China’s National People’s Congress, the annual plenary session of China’s legislature, is done and dusted. No major policy upheaval ahead the 19th Party Congress in November. Nonetheless, the shift in tone in the government work report have shed some light on China’s policy direction. 1. Tone shifted from “maintaining growth” to “containing risk” The theme Read more […]

Rising Rates Arrive

Which of the figures below belong together?   It’s obvious, even if analogies aren’t your strong suit, that A is like C and B is like D.  A and C are not like B and D. The economic relevance of this simple visual exercise is this: At its March 2017 meeting, the Federal Open Market Read more […]