Advisor Perspectives
Advisor Perspectives
Insights into the world of high- and ultra-high net worth investing
March 11, 2008- Vol 2, Issue 11
 
 
 
 
 
 
 
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Consumer spending is the engine behind the US economy, representing 71% of GDP.  We spoke with Craig Johnson, a leading expert on consumer behavior and spending patterns, about the trends in the underlying data.  Johnson's views may be in the minority, but he is decidedly upbeat in the face of fears of a recession.

Commodities are shunned by many advisors, who argue that they provide returns that offer little if any advantage over inflation.  Well-known author Craig Israelsen shows the role commodities can play in a diversified portfolio, and rebuts some of the traditional arguments against commodities as an asset class.

Industry veteran William Donoghue responds to our article last week about Morningstar'shedge fund ratings, and argues that Morningstar is biased toward passive investment strategies, which he believes are the wrong choice for today's markets.

Lastly, Darrell Aviss, author of last week's article on Swiss-based asset protection schemes, addresses a reader's question about the downside and risk of these investment vehicles.

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Is Consumer Spending Signaling a Recession?

Widely-reported consumer spending data is fraught with errors that delay and miscategorize trends in the most critical component of our economy.  Craig Johnson, CEO of Customer Growth Partners, explains these biases and why he believes the American consumer may keep GDP growth in positive territory.

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Commodities as an Asset Class

As an asset class, commodities diversify a portfolio because of their low correlation to all other asset classes.  Author and finance professor Craig Israelsen provides the data behind this claim, and measures the performance improvement commodities offer to hypothetical portfolios over the last 38 years.

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Biases in Morningstar's Approach

Industry veteran William Donoghue responds to our article last week on Morningstar's hedge fund ratings, and takes on the broader subject of biases against funds of funds and separate accounts that he argues are better positioned to outperform in the current bear market environment.

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The Risks of Swiss Annuities

Darrell Aviss discusses two risks of Swiss-based investment strategies - confronting the psychological challenge of overseas investing, and the currency exposure to the Swiss franc.

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Advisor Market Commentaries Now Live

Advisor Market Commentaries is now live.  This is an initial and controlled release, and we look forward to expanding this feature over the next several months.  Read commentaries from prominent advisors, including Harold Evensky, Lew Altfest, Ron Roge, Rick Ferri, Paul Merriman, Ray Ferrara, and others.

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