Tag Archives: Equities

Inside Factors: Value Investing

The godfathers of value investing, Graham and Dodd, pioneered the approach back in the 1930s. Since then, academics and practitioners have documented the value effect. However, given its widespread adoption and implementation, there is still no single consensus as to why value stocks provide above-market returns. Explanations broadly fall into two camps: the rational and Read more […]

Home Price Bricks in Your Portfolio

In this post, we look at whether adding a home price index, as part of a multi-asset bundle, to a hypothetical portfolio could potentially improve its attributes. We created two portfolios, one comprised of equities and bonds (portfolio A), and a second that contained the elements of portfolio A plus commodities, home prices and infrastructure Read more […]

Let Me Count The Ways To Get To 8%

Recently I visited a few pension plans and it amazes me how the policy views on risk differ to meet seemingly similar return goals. The National Association of State Retirement Administrators (NASRA) reported earlier this year that of 126 major state and municipal systems, 32 had set an assumed rate of return between 7.5% and 8%, 37 Read more […]

Investing and keeping it Simple! Part Two

The ongoing debate around the inadequate financial literacy in this country continues. We often  attribute this to the slow growth of our mutual fund industry, which still have a sea of investors who need to wake up to understanding the benefits of this industry. I ran a quick poll in my personal network of family Read more […]

Keep those flowers short on Valentine’s day

Historically (from 1928), as defined by the S&P 500, 52.1% of the trading days are up (average +0.745%) and 46.2% are down (average -0.789%).  For Valentine’s day there is a thorn. On February 14th the market has been up only 40.0% of the time and down 56.9% of the time (it was flat in 1944 Read more […]

Indian Fixed Income or Equities: Know your onions!

The fixed income market is quintessential for the growth of the economy. They serve as one of the mediums for the government to raise money. In India the fixed income market has been attaining the depth as well as maturity over the years and the government securities play a dominating role. The on-the-run 10 year Read more […]

The Dow Jones Industrial Average in 2013? Yeah, that went well…

A steadily improving economy and no small amount of performance-enhancing stimulus from the Fed re-enthused equity investors in 2013, leading the Dow Jones Industrial Average to finish in record territory. Let’s go to the tape: Impressive Climb – The DJIA finished the year at 16,576.66, up 3,472.52 or 26.50%.  That performance leaves us with the Read more […]

Income Beyond Bonds

With both short- and long-term interest rates in the basement, income-sensitive investors have naturally begun to look to equities.  Significantly, the yield on the S&P 500 now exceeds that of the 10-year U.S. Treasury bond – a relationship last seen in approximately 1958.  But if some equity yield is good, does that mean that more Read more […]