May 8, 2012 - Vol 6 No 19
Economic Blogger Mike "Mish" Shedlock's wife has ALS, better known as Lou Gehrig's disease. Mish is not asking for anything for his family, but has sponsored a raffle for ALS research. Please consider buying one or more tickets or making a small donation to the
Les Turner ALS Foundation.
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| Richard Bernstein:
US Assets will Outperform over the Next Decade
By Robert Huebscher
Prior to founding the firm that now bears his name, Richard Bernstein was the chief investment strategist at Merrill Lynch & Co. In this interview, he discusses why he expects US assets - both equities and fixed income - to be the outperformers among global markets over the next decade.
| Volatility: The "Godfather" Asset Class
Sponsored Content by American Century Investments
Michael Corleone's famous line in Godfather II, "Keep your friends close, but your enemies closer," can be applied to volatility. Often thought of as the investing enemy, volatility can play an important role in the financial professional's arsenal as a portfolio diversifier. In this article, American Century Investments discusses the opportunities and challenges associated with incorporating volatility as a hedge in multi-asset portfolios.
| Annuities versus Systematic Withdrawals:
Understanding Tax Effects
By Joe Tomlinson
Given the complexity of most annuities, analysis of them typically only considers pre-tax results. But taxes matter. As we will see, tax impacts vary by the specific type of annuity you're considering, and will make the difference between annuities being cost effective or a drain on cash flow.
| Q2 Outlook: "Sell in May" May Not Work This Year
Sponsored Content by OppenheimerFunds
Chief Economist Jerry Webman explains why he believes the U.S. economic recovery is real and CIO Art Steinmetz talks about how stocks are as cheap compared to bonds as they have been in decades.
| Mohamed El-Erian and David McWilliams:
The Key to Resolving Europe's Crisis
By Robert Huebscher
Dealing with a crisis requires three things, according to Jack Welch, General Electric's former CEO. Define your reality - not as you would like it to be, but as it is. Do something about it. Then, third, acknowledge that the crisis wasn't half as difficult as you thought it was. Germany is the key player in Europe's crisis today, and it is still struggling to accurately define its reality.
| Three Qualities that Define Top Performers
By Dan Richards
Regardless of market conditions or the business environment, some advisors inevitably expand their business at the expense of their peers. A new research report identified three common traits among those who were able to show sustained growth in their practices.
| Why the Best Conductors Sent Us Home Early
By Justin Locke
As a professional speaker, I focus on leadership and management. But I have a major handicap to overcome: the conventional wisdom that a core goal of leadership is to motivate greater effort.
| The Adjusted Gold/XAU Ratio as an Indicator of Forward Returns for Gold Stocks - An Update
By Georg Vrba, P.E.
The latest data have a clear message for investors: gold stocks are attractively priced.
| Can You Make Great Sushi Out of Crappy Fish?
By Mariko Gordon
What does it take for a tiny sushi restaurant in Tokyo to earn a Michelin three-star rating? The answer offers insights for stock-picking (really!). Here are seven suggestions for determining which analysts are most worthy of your attention.
| Letter to the Editor
A reader responds to Bob Veres' article, How to Respond to the Bachus-McCarthy Bill, which appeared last week.
| Highlights from Market Commentaries
Here are the top three commentaries from last week.
Release the Kraken
The problem for the stock market is that the 13-year journey of underperforming T-bills - with wicked collapses and break-even recoveries - is most probably not over.
Tags: Equities US
Release the Kraken by John P. Hussman of Hussman Funds
Tuesday Never Comes
The current acceleration of credit via central bank policies will likely produce a positive rate of real economic growth this year for most developed countries, but the structural distortions brought about by zero bound interest rates will limit that growth and induce serious risks in future years. Gradually higher rates of inflation should be the result of QE policies and zero bound yields. Focus on securities with shorter durations bonds with maturities in the 5-year range and stocks paying dividends that offer 3%4% yields. Real assets/commodities should occupy an increasing percentage.
Tags: Equities US Monetary Policy
Tuesday Never Comes by Bill Gross of PIMCO
Newsflash: The Dividend Aristocrats Found The Lost Decade
Volatility can only hurt you if you react to it. And you should not react to it unless there is a real fundamental deterioration with the fundamentals of the businesses you own. If fundamentals are strong and price falls, then buy more if you can, or hold if you cant buy more. The very best companies can remain profitable even during our most severe economic challenges. Consequently, when you can find these companies on sale, regardless of what caused it, I believe you should consider optimistically investing in them. It sure beats taking losses that you dont need to absorb.
Tags: US Investment Themes
Newsflash: The Dividend Aristocrats Found The Lost Decade by Chuck Carnevale of F.A.S.T. Graphs