Money and Finance
- John Mauldin's Outside The Box: Game Changer - By Ed Easterling
Investors are confronting the reality of the current secular bear market. It is both the consequence of the previous secular bull market and the precursor to the next secular bull. The duration of the current secular bear period is uncertain. Should inflation...
- Use The Market's Short-termism To Your Advantage
Here's a general criticism that I often hear about investing in companies with economic moats: Companies with economic moats always look expensive and they trade with premium multiples to the market. How can we invest with a suitable margin-of-safety...
- An Easy Mistake Made By Dividend Investors
Dividend investing can seem deceptively easy. If you want to generate, say, a 5% yield from your dividend portfolio, you only need to buy a group of stocks that provide a weighted average yield of 5%. Then just sit back and watch the money roll in. Or...
- The Ten Points Of Income Investing
1. Income investing is a separate and distinct strategy It's not growth, it's not value -- income comes first. (See: The Income Investor's Manifesto) 2. Discipline and patience are behavioral prerequisites Great dividend-producing...
- 5 Rules For Building A Dividend-focused Portfolio
So you want to build a dividend-focused portfolio... To borrow a phrase from Dickens, it may be the best of times and the worst of times to do so. You can still build a dividend portfolio with a respectable average yield today, but strong market performance...
Money and Finance
CornerCap Special Report: THE AFTERMATH OF 2008 - A Look at the Lasting Impact of the Credit Crisis
The panic of 2008 is still among us, judging from investor behavior. Most investors are putting a premium on safety at almost any price. This article looks at the lasting impact of the credit crisis: Does it mean we are in a different investment era? Are defensive portfolios that seek extra yield the only prudent strategy in this difficult time?
Key Messages
Market volatility and the fallout of the credit crisis have had a profound negative impact on expectations and investment strategy. Nevertheless, we’ll argue that while we are in a new economic era, we are not in a new era for investing, as investor behavior since 2008 reveals.
Excessive emphasis on defense exposes long-term portfolios to two key risks: 1) not growing enough to meet longer term objectives and 2) actually losing value (the opposite of the intended goal) if inflation materializes.
Recognizing investment extremes, which requires running against the grain, is key to success. We continue to see long term risk to bonds, so we keep maturities short; we find larger high-dividend stocks and US REITs to be expensive; and we see better opportunity in US value stocks, international stocks, and select higher-yielding investments.
While no one can predict the future, we build broad portfolios that align investment tools with probable outcomes to help you achieve your long term goals. In this commentary, we review our method for doing so.
- John Mauldin's Outside The Box: Game Changer - By Ed Easterling
Investors are confronting the reality of the current secular bear market. It is both the consequence of the previous secular bull market and the precursor to the next secular bull. The duration of the current secular bear period is uncertain. Should inflation...
- Use The Market's Short-termism To Your Advantage
Here's a general criticism that I often hear about investing in companies with economic moats: Companies with economic moats always look expensive and they trade with premium multiples to the market. How can we invest with a suitable margin-of-safety...
- An Easy Mistake Made By Dividend Investors
Dividend investing can seem deceptively easy. If you want to generate, say, a 5% yield from your dividend portfolio, you only need to buy a group of stocks that provide a weighted average yield of 5%. Then just sit back and watch the money roll in. Or...
- The Ten Points Of Income Investing
1. Income investing is a separate and distinct strategy It's not growth, it's not value -- income comes first. (See: The Income Investor's Manifesto) 2. Discipline and patience are behavioral prerequisites Great dividend-producing...
- 5 Rules For Building A Dividend-focused Portfolio
So you want to build a dividend-focused portfolio... To borrow a phrase from Dickens, it may be the best of times and the worst of times to do so. You can still build a dividend portfolio with a respectable average yield today, but strong market performance...