Advisor Perspectives
Advisor Perspectives
Insights into the world of high- and ultra-high net worth investing
January 2, 2008- Vol 2, Issue 1
 
 
 
 
 
 
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The falling value of the US dollar was one of the most significant macro economic trends during the last year.  But what was bad for the dollar was good for the markets.  Our article examines the implications of a weak dollar on trade, interest rates, monetary policy, and ultimately how it will affect the equity markets.

Last week we presented an analysis by researchers at FundQuest, showing which investment categories benefit from active versus passive strategies.  Brent Bentrim, who runs an advisory firm in South Carolina, comments on this study and the role of turnkey asset management programs (TAMPs) in an RIA practice.

We expanded last week's list of our most popular stories from our top five to our top ten.  Our distribution grew in 2007 from approximately 29,000 to 45,000 recipients, and this is an opportunity for our new readers to catch up on some of our older articles.

Lastly, we wish all our readers a happy Holiday season and a happy, healthy, and prosperous New Year. 

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Why the Falling Dollar is Good for the Market

The dollar lost 9% of its value to the Euro this year, and nearly 16% to the Canadian dollar, our largest trading partner.  But what has been troublesome for many tourists has been a boon for US companies and the stock market.  We look at the historical data and show why a falling dollar helps equities in today's markets.

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Letter to the Editor re FundQuest's Study of Active and Passive Management

Our article last week on FundQuest's study of the investment categories that benefit from active versus passive management drew a lot of interest.  We publish a letter to the Editor addressing the research methodology used in the study and questioning the role of turnkey asset management programs, such as FundQuest, within an RIA practice.

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Our 10 Most Popular Stories from 2007

Below is our ranking of the ten most popular stories from 2007.  Our editorial staff monitors this list closely, and three topics stand out as having the greatest interest for our audience:  interviews with thought leaders in the industry, strategies for identifying successful active fund managers, and profiles of successful investors, such as the Yale Endowment.  Expect more coverage of these topics in 2008, along with coverage of new topics that will help RIAs and wealth managers better serve their clients.

1 - Yale Endowment's 2007 Asset Allocation Targets: How Applicable Are They to Your Clients' Portfolios?

2 - How High Are Today's P/E Ratios?

3 - John Bogle on Active Management, Diversification, and the Future of the Mutual Fund Industry

4 - Harold Evensky: How to Fund the Distribution Phase of a Retirement Account

5 - Our Interview with William F. Sharpe

6 - From Yale University: New Research Confirms the Value of Active Management

7 - Burton Malkiel on Indexing, Active Management, China, and the Value of Financial Advisors

8 - An Assault on Style Boxes

9 - Rebalancing Revisited: Keeping Portfolios on Track During Volatile Markets

10 - Identifying Mutual Fund Managers that will Beat the Market
Advisor Market Commentaries

We are introducing a new feature that will be a compendium of year end market commentaries from RIAs.  We discuss this project and how you can participate.

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