This article, originally published in Worth magazine, looks at some do's and don'ts for increasing cash flow in today's low-interest rate environment.
Altair's Jason Laurie details the dangers (and common practice) of chasing higher-yield investments in this Worth magazine article.
For wealthy families, 529s may not be the optimal way to save and pay for education. Altair's Rebekah Kohmescher explains in this Worth magazine article.
Ultra-short-duration bond funds seek to improve on the strategy underlying money market funds. By holding a variety of fixed income instruments with very short average durations in a fund structure, investors may be able to achieve higher yields from the current market environment than they typically could in a money market fund, albeit with little additional volatility and limited sacrifice of liquidity.
A study by Morningstar for the decade beginning in 2000 suggests that average investors underperformed the mutual funds they invested in by 1.5 percent per year due to investing near highs and exiting near lows. The fear of making a mistake is especially heightened in those who retire or sell a business. They are faced with investing the majority of their wealth for the first time—and in a very turbulent market.
This issue of Eton's Investment Outlook explores the concept of confidence level, using the familiar example of airline travel to illustrate our need for higher confidence levels in certain activities than in others. An investor’s level of confidence, both desired and actual, is a key driver in the Goals-Based Investing framework. This article describe how confidence levels are a function of our priorities, our time horizon, and the amount of portfolio risk we assume when investing.
History shows a number of scenarios could lead to significant losses for bond investors. Based on an examination of fixed-income markets since 1919, researchers found that even the most gradual rate increase scenario models an annualized return expectation of 0 percent for almost six years.
Each investor—whatever his or her background, experience or training—should employ a systematic protocol in the pursuit of growth and stability. An investment process should embody an investment philosophy. Grounded by best practices, this philosophy should stem from a set of beliefs that prescribe how to generate superior risk-adjusted returns in varying market environments and cycles.
Every investor knows about Yale University and the extraordinary success of its endowment portfolio. Indeed, many families have tried to emulate Yale’s approach to asset management, for obvious reasons. Unfortunately, fewer people are aware of of the Norway Government Pension Fund. While there are certainly aspects of the Yale Model that are useful to private investors, the Norway Model seems to speak much more directly to families and, equally important, seems to be implementable by all but the smallest family investors.
Emerging markets have been recognized for quite a while as a place where investors can earn greater returns than in developed economies due to higher economic growth, strong balance sheets and more attractive demographics. Although investing in emerging markets remains an area of opportunity for investors, navigating an emerging market economy is challenging.