|
|
Advisor Perspectives
Insights into the world of high- and ultra-high net worth investing
May 5, 2009- Vol 3, Issue 18
|
|
|
|
|
|
|
|
In the long-term performance race against
inflation, stocks are the hands-down winner, outpacing inflation
9.7% to 3.0% since 1926. But that history is characterized
predominantly by modest inflation, with one big exception - the 1970s, when
double-digit inflation contributed to a bear market. We look at new research showing the effectiveness of
different asset classes as inflation hedges, and Zvi Bodie explains the implications for retirement
portfolios.
We touched a few nerves last week with our critique of Standard and Poor's SPIVA study, where
we raised doubts about S&P's claim that passive management does better in bull markets than in bear markets.
We publish letters from two of our more
vocal critics, along with our response.
Rather than asking for donations online, the Obama campaign's on-line advertising
had the single-minded objective to get
people to sign up for their email list, agreeing to receive more
information. As Dan Richards explains,
the reason for this was quite simple - obtaining an email address and the owner's agreement to receive future communication
about the campaign was vastly more valuable than a single donation.
More articles below...
Hawaii-based advisor John Robinson is the
author of several articles on safe withdrawal rates, and he reviews our
recent article, A Safer Four Percent Withdrawal Rule.
We respond to Robinson's critique.
In this guest contribution, Robert Pardes
discusses the "intellectual chasm" - a professional,
cultural and practical divide that has perpetuated a universal failure to fairly balance risk and reward for the benefit of
the economy at large. Across the public and private
sectors, this chasm lies at the root of
the current financial crisis.
Advisors looking to creatively and
inexpensively increase visibility can use locally-oriented search engine optimization (SEO)
for their web sites and blogs. Mark Forman, in this guest
contribution, offers three tips for
successful SEO.
Lastly, we highlight submissions to Advisor
Market Commentaries.
We welcome guest submissions from our readers. For more information, here are our guidelines.
If you are experiencing problems opening or navigating through our
newsletters, we can send you a text-only version. Please send an
email to feedback@advisorperspectives.com
requesting the "text-only" version.
If you have received this newsletter in error, or you do not wish to
receive future newsletters, please reply to this email with the word "unsubscribe" in
the subject line.
|
|
|
|
|
|
|
In theory, equities should perform well during inflation. They
represent real assets, and as the prices of these assets rise, so should
equity prices. In this case, though, history and theory are at
odds. We speak with retirement expert Zvi Bodie about new research on
the effectiveness of different asset classes as inflation hedges.
Defending Against Inflation: A New
Look across Asset Classes
|
Active
versus Passive: Readers Respond
|
|
One reader claims our critique of S&P's SPIVA study ignores the more
important question of whether skillful managers can be identified in
advance, and another objects to our criticisms of S&P's methodology.
We respond to both readers.
Active versus Passive: Readers
Respond
|
A
Prospecting Tip from Barack Obama
|
|
The ultimate
objective for advisors hasn't changed - it's to secure a face-to-face
meeting with a qualified and interested prospect. But advisors need to
fundamentally rethink how to make that meeting happen. More and more, you
will need to cultivate and nurture prospects by being more patient and
introducing upfront value.
A Prospecting Tip from Barack Obama
|
A
Critique of Our Article "A Safer Four Percent Withdrawal Rule"
|
|
John Robinson has written extensively on the subject of safe withdrawal
rules, and he raises a series of criticisms of our article on this topic,
including our methodology for pricing TIPS and the default risk in the
municipal bond market. We respond to each of the points raised by Mr.
Robinson.
A Critique of Our Article "A
Safer Four Percent Withdrawal Rule"
|
Reform
and the Intellectual Chasm
|
|
With a mandate to implement change, Robert Pardes says we must be
relentless in our pursuit for new ideas. Acknowledging the intellectual
chasm is essential to inspire the reform that can move America
past this crisis into a new era of prosperity and influence.
Reform and the Intellectual Chasm
|
Three
Tips for Going Local with Search Engine Optimization
|
|
If your local branch of the public library had a large portion of books
with plain, white spines lacking titles or author names, you'd likely
ignore those books in favor of the ones whose titles or authors you could
read easily on the spine. Your website and blog postings must be easy for
search engines to index-in the way that you want them to be indexed. That's
the essence of Search Engine Optimization.
Three Tips for Going Local with
Search Engine Optimization
|
|
Highlights
from Advisor Market Commentaries
|
|
As Nouriel Roubini notes, a few years back, before this crisis erupted,
several economists were concerned about the sustainability of the large
global imbalances fueled by the so-called Bretton Woods 2 (BW2) system.
These economists recognized in the tendency of emerging (export-led)
economies to manage their exchange rate systems the origin of large trade
and current account surpluses that, via large foreign reserve accumulation,
were financing the mirror of those surpluses, namely the large U.S.
trade and current account deficits.
Read the commentary
John Mauldin casts doubt on claims that the recession is ending, and
provides an enlightening look at recent data purporting to show signs of
increased consumer spending. Mauldin also looks at whether there is
any substance to the claim "sell in May and go away" - as you read
this section, though, ask yourself whether there is any
"causation" behind the "correlation."
Read the commentary
|
|
Advertise
in Advisor Perspectives
|
|
Our newsletter goes to over 75,000 RIAs, wealth managers, and financial
advisors. See how you can deliver your message to our sophisticated
audience.
Read more
|
|
Advisor
Perspectives
Box 380
Lexington, MA 02420
(781) 376-0050
|
|
|
|
|
|
