December 21, 2010 - Vol 4 Issue 51
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Debunking Ken Fisher
By Robert Huebscher
In his latest book, Debunkery, Ken Fisher achieves his goal of dispelling many common investment myths and, in doing so, offers his philosophy on how individuals should manage their money. While most of the advice he offers is unequivocally correct, he also makes egregious errors on some serious matters.
Gundlach: Are Taxes Too Darn Low?
By Robert Huebscher
One way to avert the crisis posed by growing fiscal deficits is a significant tax increase, according to Doubleline's Jeffrey Gundlach. Although he did not advocate this policy, in his conference call with investors last week he said the strain of fiscal deficits poses as yet unanswered challenges to the economy and the markets.
Ed Hyman: We Are Not Japan
By Katie Southwick
Despite his worrisome outlook earlier this year, the ISI Group's Ed Hyman provided an upbeat forecast of the US economy, arguing that we are in the midst of an economic recovery that will lead to expansion. We are demonstrating that we are not Japan, he said.
Two Words that Get Prospects' Attention
By Dan Richards
When approaching business owners, some advisors talk about taking a wealth management approach to provide integrated advice around their finances. That approach, however, is too vague and generic.
Three Ways to Tweak Your Marketing
By Kristen Luke
Even the best marketers can improve upon their existing successful campaigns and marketing messages. Here are my three recommendations for how to tweak your marketing for better results.
Challenging John Hussman's Forecast
By George Vrba
In a recent commentary, John Hussman listed 10 occasions which provided warnings of market declines. My model, Improving on Buy and Hold, does not confirm his current warning.
How Much Smid-Cap Exposure is Best?
By John Quigley, CFA and John Bright, CFA
Small- to mid-cap stocks have outperformed since 1999 and have attracted considerable attention. We offer a few things to consider in determining how much exposure to smid-cap stocks you should maintain.
Letter to the Editor
A reader asks a question in reference to the article, The Kings of Cash Flow - Investing in Tomorrow's Potential Winners Today, which appeared on November 16. The authors of that article respond.
Highlights from Market Commentaries
Below are the three most widely read commentaries during the last week:
Staying the Course No Longer Works!
'Staying The Course No Longer Works,' and 'Modern Portfolio Theory is Dead,' have been popular headlines with the financial media. It sure sounds good; after all, why would any investor willingly subject their portfolio to the massive losses of 2008 and early 2009? So does that mean that long term strategic investing is out the window? One of our core beliefs is that to earn market returns an investor needs to be in the market.
Staying the Course No Longer Works! by Harold Evensky of Evensky & Katz
The Case for Dividend-paying Stocks
Despite all the noise that the Democratic left is making, the tax bill is going to pass very soon. There is a tangible positive effect here from the tax bill and pertains to dividends. Under the deal, the top tax rate on dividends will stay at 15%. If most of the spasm in the bond market is behind us, one would have to think that a focus on dividend growth is going to have some payoff with the taxation uncertainty put to bed. The U.S. nonfarm nonfinancial corporate sector is sitting on $1.93 trillion of cash/equivalents, which is at a 51-year high representing 7.4% share of total assets.
The Case for Dividend-paying Stocks by David Rosenberg of Gluskin Sheff
Germany in a Lose-Lose Situation
The problem is that Germany's current approach - centered on dealing with liquidity problems now and solvency centered later - is not working. A liquidity approach that delays the day of reckoning may be good regional politics, but it's bad economics. It does not restore sustainable growth to the periphery, and it exposes the core to contamination. Rather than simply doubling up on a faltering liquidity approach, the time has come for Germany to lead a more holistic solution focused on addressing the periphery's debt overhang and competitiveness problems.
Germany in a Lose-Lose Situation by Mohamed El-Erian of PIMCO