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 GMO: Two Questions We Can't Answer
By Robert Huebscher
Its reputation was built on stellar returns achieved with long-term bets on undervalued asset classes. Current market conditions, however, pose two unanswerable questions for GMO - leaving the firm with an uncertain strategy for its equities and fixed-income allocations.
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Our Current Perspective on the Global Economic Outlook
Sponsored Content by American Century Investments
As we proceed through the first quarter of 2012, the U.S. economy continues to drift- not in recession, but far from the level of growth and dynamism we would like to have. Meanwhile, global economic growth has slowed as the world anticipates a solution to the European sovereign debt crisis. In short, we are in a period of uncertainty, not only about how key events will unfold, but about the timing associated with their future progress and resolution.
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Jack Bogle: The Triumph of the Index Fund
By Robert Huebscher
Jack Bogle has spent his career selling investors on virtues of index funds. In a talk last week, he spoke triumphantly, as if the battle is all but over.
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Career Opportunities
As a service to our clients, we are posting career opportunities for firms that seek to add financial advisors and planners to their staff.
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The Top Three Myths about Women Investors
By Lisa Kueng
Successful marketing requires an understanding of your target market. Too often, however, advisors are misled by outdated industry ideas and strategies that have shifted over time. Advisors who target women investors should avoid myth-based errors that others have made.
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The Secret to Motivating your Team
By Dan Richards
Many advisors struggle with staff members who regularly fall short in terms of work ethic, attention to detail or ownership of outcomes. Getting the most out of your team is essential, and a new book illuminates an effective way to build motivation in your organization.
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Success: The Enemy of Creativity
By Justin Locke
Creativity and imagination are universal human traits, yet it's a common idea that certain countries are more creative than others. Can this notion have any basis in fact?
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Questions of Character
By Michael Lewitt
As a long-time investor in leveraged companies, the character of management has long informed my decisions of where to direct capital. There is no margin of safety when you invest in a company managed by dishonest or reckless managers, or a management team that has a history of placing its own interests before those of its shareholders or creditors. The same is true of choosing an investment manager.
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Letter to the Editor - Jeremy Grantham
A reader responds to Michael Edesess' article, Jeremy Grantham: This Time is Different, which appeared last week.
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Our Most Read Article from Last Week:
Jeremy Grantham: This Time is Different
By Michael Edesess
Jeremy Grantham is a paradox. A man who has said many times, 'This time it's different are the four most dangerous words in the English language,' is now saying - loud and clear - this time it really is different.
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Highlights from Market Commentaries
Here are the top three commentaries from last week.
 What Goes Up Must Come Down!
Whilst we at GMO fret over evidence of the strained nature of profit margins, the ever bullish Wall Street analysts expect profit margins to continue to rise! Witness Exhibit 4. In our search for evidence of a structural break, this simple-minded extrapolation gives us some comfort because the Wall Street consensus has a pretty good record of being completely and utterly wrong.
Tags: Equities US
What Goes Up Must Come Down! by James Montier of GMO
 The First Sign of Weakness in Corporate America
Negative earnings surprises are on the rise in the US: over half of the S&P 500 has reported and 30% of the companies have reported negative earnings surprises versus a long-term average of 24%. However, negative earnings surprises are significantly higher outside the US. Additionally, recent economic data suggest that a revival of the US household sector may be underway. We expect the secular outperformance of US assets to continue.
Tags: Equities US
The First Sign of Weakness in Corporate America by Richard Bernstein of Richard Bernstein Advisors
An Angry Army of Aunt Minnies
The steepest market plunges on record (e.g. those following the 1973-74, 1987, 2000 and 2007 peaks, among others) have generally followed an overvalued speculative blowoff coupled with divergent interest rate pressures. This is why we take the "overvalued, overbought, overbullish, rising yields" syndrome so seriously. Indeed, the outcomes are usually negative on average even without rising yields, but the yield pressures tend to add immediacy. Notably, the emergence of this syndrome has provided accurate warning of oncoming losses both historically, and also as recently as 2010 and 2011.
Tags: Equities Bearish US
An Angry Army of Aunt Minnies by John P. Hussman of Hussman Funds
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