Month: May 2015

“The stock market is a voting machine rather than a weighing machine. It responds to factual data not directly, but only as they affect the decisions of buyers and sellers.”- Graham and Dodd, Security Analysis Earnings drive stock prices, so says investing lore. As earnings rise, stock prices move higher. As earnings fall, stock prices […]

Bond Math and the Elephant in the Room

  • Markets
  • Charlie Bilello

What are you expecting from the bond portion of your portfolio over the next six years? 5%? 6%? 7%? These would all have been reasonable expectations in the past, but past is not prologue, especially when it comes to investing. Whatever number you were thinking of, it is likely too high. Why? The largest Bond […]

The greatest fear in the investment management industry is not what one might expect. It is not losing money but the fear of not making enough money when the market is moving relentlessly higher. This “fear of missing out” strikes terror into the heart of portfolio managers as clients will simply not tolerate it; it is […]

Seven Years of Famine for Savers

“The seven lean, ugly cows that came up afterward are seven years, and so are the seven worthless heads of grain scorched by the east wind: They are seven years of famine.” – Genesis 41:27 If the futures market is correct, the U.S. Federal Reserve will continue to hold the Fed Funds rate at 0% […]