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Sign up here for a free webinar, "The Fiduciary
Opportunity" on March 16 at 4pm EST where Envestnet discusses the
rules governing advisors. Join them for this free webinar to learn
more about the pending legislation and the implications to the financial
industry.
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Followers of Jeremy Grantham know his consistently accurate
long-term forecasts well, as well as his ability to identify and avoid
asset bubbles and steer clients into high-performing asset classes. Grantham's
prescience is remarkable but not irreplicable. Geoff Considine
shows that his Monte Carlo simulations nearly match Grantham's forecasts,
and he reviews the implications for asset allocations.
Scott Wittman, Chief Investment Officer for American
Century Investments, provides his quarterly review of macro-economic
factors and trends which influence the tactical weighting decisions for
American Century's asset allocation funds. In the article, Wittman
reviews and comments on recent events, trends and expected short-term
future changes in monetary, fiscal, industrial, trade, regulatory,
political and financial macro economic factors. We thank them for
their sponsorship.
We wrote in the past about the perilous situation of public
pension systems nationwide, and the Massachusetts state pension system
is no exception. The severe problems Massachusetts faces -
created by years of generous worker benefits and declining asset values - mirror
challenges faced by many other states.
In this guest contribution, Michael Nairne examines a
manager's track record, and highlights the critical question of persistence
in performance - whether a manager's past performance is predictive of
future performance. Certainly, he says, considering the avalanche of media
articles on top winning funds and the endless sales pitches to investors
trumpeting "best in class" managers, one would assume that
there is some reasonable level of persistence in performance...
Last week, Wealthcare Capital Management's David Loeper accused Roger
Schreiner, of Schreiner Capital Management, of "playing a shell
game" and "stacking the deck," in regard to
Schreiner's $100,000 challenge to passive managers. Schreiner
responds, and says that passive advocates miss the point that relying
only on diversification is insufficient to protect against downside risk.
For the past two weeks, the world's eyes were on the Winter Olympics in
Vancouver, focusing on those athletes who excelled, pulling away from
the pack with multiple medals. Watching the Olympics, however, isn't just
about athletes achieving their goals. As Dan Richards writes,
financial advisors looking for guidance on hitting their own goals can take
away nine important lessons.
Robert Pozen is the chairman of MFS Investment Management and a
senior lecturer at the Harvard Business School. In this interview
with Dan Richards, he discusses the financial crisis, Social
Security, and the mutual fund Industry. We provide a transcript
and a video replay of the interview.
In our letters to the Editor, a reader responds to our article How to Squander $170 Billion, and another responds to a
claim that clients are moving away from their existing advisory
relationship as a result of recent market events.
Lastly, we highlight submissions to Advisor Market Commentaries.
We welcome guest submissions from our readers. For more
information, here are
our guidelines.
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