|
|
Advisor Perspectives
Insights into the world of high- and ultra-high net worth investing
June 23, 2009- Vol 3, Issue 25
|
|
|
|
|
|
|
|
The majority of academic studies
conclude that active management does not
add value for investors. However, a closer look at how many
studies were conducted reveals several
flaws in their methodology that are not as well-known as the
accepted conclusion about active versus passive management. Guest
contributor Ken Solow revisits work by
two Yale researchers showing the value added through active management.
You want to succeed on the strength of
your own decisions. Envestnet provides essential tools,
services, and a broad selection of investment offerings that empower
financial advisors to successfully go
independent. As an independent advisor, you make your own
choices and build your business the way you know is best for you and your clients. We
thank them for their sponsorship.
John Williams of Shadow Government Statistics is best known for
exposing inaccuracies and biases in government reporting of data - most
notably the understatement of the CPI index. Williams says the US economy is on the brink of hyperinflation which will
render the dollar worthless, as happened recently to Zimbabwe's local currency.
Even with the 40% market recovery since March, many investors are still very anxious and looking for guidance and
direction from their advisors. One way to respond to this demand
is by sending clients a mid-year letter
with your thoughts on where we are today and an outlook for the period
ahead. Dan Richards has prepared a
template for you to use.
Ted Wong's article last week, Moving
Average: Holy Grail or Fairy Tale?, drew a large number of questions and comments from
readers.
E-mail marketing is no longer
a new marketing channel, but if used effectively it can become a powerful marketing and relationship building
tool for financial advisors. In this guest contribution,
Dan Sommer explains the benefits of e-mail-based marketing and provides tips to get started down this path.
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 use the
"Safe Unsubscribe" button at the bottom of this email.
|
|
|
|
|
|
|
What if an academic study proved that individual fund managers actually do
outperform their benchmarks with persistence in a statistically significant
way? If truly active fund managers, as opposed to closet indexers, were
shown to be able to beat their style-specific benchmarks, then perhaps the
idea that investors should put their brains to sleep because markets are
efficient would become less attractive.
Compelling Evidence That Active
Management Really Works
|
Financial
Advisors Find a Desired Alternative to Wirehouse Brokerage Firms
|
|
Envestnet was
founded on the belief that independent financial advisors, given the right
tools and the most advanced technology, could seize a competitive edge by
matching the scope of products and services offered by the largest
brokerage houses and wealth management firms. Advisors can also
leverage comprehensive practice management resources and investment
expertise that allow them to further build their practice.
Go Independent
|
|
|
|
Hyperinflation is
imminent, says John Williams, for one basic reason: Government debt cannot
be financed in the long-term, as the unfunded liabilities from entitlement
programs (Social Security, Medicare, and Medicaid) will overwhelm our
ability to service our debt. Williams estimates the size of these
liabilities at over $65 trillion as of the end of fiscal year 2008 (about
five times that of our GDP), and expects them to grow to $75 trillion at
the end of fiscal 2009.
The Road to Zimbabwe
|
A
Mid-Year Letter to Your Clients
|
|
As you think about staying top of mind with clients, consider sending a mid-year
letter using the template Dan Richards provides. The investment of
time required could pay big dividends in client peace of mind and be the
difference between keeping clients and losing them.
A Mid-Year Letter to Your Clients -
Introduction
A Mid-Year Letter to Your Clients -
Template
|
Letters:
Moving Average: Holy Grail or Fairy Tale - Part 1
|
|
We present a number of questions and comments from readers on Ted Wong's
article last week on moving average systems.
Letters: Moving Average: Holy Grail
or Fairy Tale - Part 1
|
Reach
Clients and Prospects Through Their In-Boxes
|
|
Dan Sommer provides a game plan and tips for advisors to get started with
an e-email marketing campaign. He discusses the benefits of e-mail
marketing, how to develop and build your distribution list, how to create
content, and how to measure success.
Reach Clients and Prospects Through
Their In-Boxes
|
|
Highlights
from Advisor Market Commentaries
|
|
John Mauldin writes that his premise for uttering the heresy "This
Time It's Different*" is that the fundamental nature of the economic
landscape has so changed that comparisons with post-WWII recoveries is at
best problematical and at worst misleading.
This Time It's Different*
The arguments for why one should sell the cat, pawn the mother-in-law and
use the proceeds to buy gold are well known: The Fed is printing money
faster than you can read this, which will result in inflation; the
government is borrowing like a drunken monkey, so the dollar will be
devalued; this will debase all currencies, so the only thing that will save
you is the shiny metal. However, Vitaliy Katsenselson offers some
arguments why one should think twice before jumping in bed with gold bugs.
Five Reasons to Avoid the Gold Rush
|
|
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
|
|
|
|
|
|
