Posts filed under “Investing”

Asset Classes: Real 10-Year Expected Return


Source: Research Affiliates

 

Rob Arnott of Research Affiliates writes:

In a world of low bond yields and slow economic growth, historically realized 5-6% real (7-8% nominal) asset class returns may be unrealistic expectations for the future.

In other words, assets with above-average valuations may not deliver the sort of returns people came to expect before the credit crisis.

What’s an investor to do?

Thankfully, we have a chart.

 

Continues here

Category: Asset Allocation, Investing, Markets

You Are Worrying About the Wrong Things

No, you are not going to die from Ebola. To quote a wag on Twitter, “More Americans have been married to Kim Kardashian than have died from Ebola.” But the latest scare does have a small positive: It provides me with yet another opportunity to lecture you about how incredibly dumb your lizard brain is….Read More

Category: Investing, Politics, Psychology, Really, really bad calls

What Town Should We Visit Next?

  We just got back from D.C. where we visited lots of existing (and future) clients. We also met lots of folks who were interested in LiftOff. We are planning our next trip for earlier next year, and decided to throw this open to the crew: What town should we visit next? If you would…Read More

Category: Asset Allocation, Investing

Emerging Market Maker

Neat little interactive tool to play with some aspects of overseas investing by comparing emerging markets across key metrics:   Click for an interactive graphic. Source: BlackRock

Category: Data Analysis, Digital Media, Economy, Investing

Market Sell Off May Not Have Run Its Course Yet

The change in tone in the equity markets is unmistakable: There is a palpable tension that leads some money managers to shoot first and ask questions later. The net result of that anxiety can be seen in the flood of new money into U.S Treasuries, which ever so briefly drove the yield on the 10…Read More

Category: Cycles, Investing, Markets, Trading

Are Falling Oil Prices Driven by Rising Supply or Falling Demand? (Yes)

It’s been impossible to miss the headlines screaming about oil: Prices Plunge! Multiyear lows! Supply glut! Dollar rally! My concern is less about a supply glut and more about falling demand. Despite a dearth of signals that a recession may be on its way, falling oil prices can be a sign that consumers are getting…Read More

Category: Energy, Investing

Correction or New Bear Market ?

Here we are, 10-plus months into the year, and we have nothing to show for it. At least, that is the case if we measure our progress by the gains (or losses) of the Dow Jones Industrial Average. The index is now unchanged for the year after last week’s losses. The previously one direction market…Read More

Category: Cycles, Investing, Quantitative, Trading

Successful Investors *Adapt (*or go Extinct)

Dave Nadig of ETF.com has some very kind things to say about our latest project: “Right now, on our home page, we have evidence of what I think is the most important trend we’re seeing in financial services. It’s not a product launch, or a clever structure or a brilliant way to make money now….Read More

Category: Apprenticed Investor, Asset Allocation, Investing

What If You Were the World’s Greatest Stock Picker® ?

Even if you could pick huge winners, could you hold them? Barry Ritholtz Washington Post, October 5, 2014       Let’s imagine for the moment that you are the World’s Greatest Stock Picker®. You have an uncanny talent for ferreting out “the next Microsoft” — companies that are on the sharpest edge of what’s…Read More

Category: Apprenticed Investor, Investing, Psychology

Predict This!

Over the years, I have discussed how little I care for predictions (see “The Folly of Forecasts“). We have chatted about how poor Wall Street is at making forecasts, wondered why they keep at it and revealed the secret to making better predictions. But the bottom line is that you humans are terrible at forecasting…Read More

Category: Investing, Quantitative, Really, really bad calls