Just Don't Lose It!
More than ever, investors want advisors and money managers to preserve their capital. So how can you make your wealth grow?
When stocks recently hit a six-month high, U.S. Trust's chief investment officer, Christopher Hyzy, expected to hear from investors eager to buy more shares. Instead, calls came in from clients who wanted to know if they should take profits, or how they could protect their winnings following the Standard & Poor's 500's quick 20% jump to break through 1300.
It's not just U.S. Trust investors who are cautious. Across the country, employers are gradually adding jobs, and fears of a double-dip U.S. recession have receded momentarily—enough to propel U.S. stocks up 4.7% in January, double their gain from a year ago. Yet financial advisors and money managers are listening to the same anxious refrain from their clients: Make sure you don't lose our money! Investors may be resigned to diminished returns, what with bond yields plumbing historic depths and banks paying almost no interest, but their biggest priority remains to avoid, at all cost, a repeat of the 2008's disastrous losses.
- The Cost Of Self-indulgence...
From Phil Fisher in Common Stocks and Uncommon Profits: ...there is a complicating factor that makes the handling of investment mistakes more difficult. This is the ego in each of us. None of us likes to admit to himself that he has been wrong. If we...
- Links
Peter Bernstein on risk (video) [H/T The Big Picture] (LINK) Related book: Against the Gods: The Remarkable Story of RiskSafal Niveshak: How to Be Happy and Get Rich (some lessons from a re-reading of Poor Charlie’s Almanack) (LINK) Nathaniel...
- High Rates? Are You Delirious? - By Jason Zweig
Have today's insanely low interest rates driven investors insane? Three closed-end funds offered by Cornerstone Advisors of Asheville, N.C., show that some investors have come to believe the impossible: that high yields can persist in a world where...
- Inflation May Be Coming. Time To Look For A Hedge. - By Whitney Tilson And John Heins
Because inflation hasn't afflicted America in some 30 years, it's worth reviewing what rising prices might mean for stock investors. In a 1977 article on the subject in Fortune, Warren Buffett went to great lengths to disabuse shareholders of...
- Barron's Interviews - Howard Marks And Rob Arnott
From November and December. Interestingly, they both mentioned convertible bonds as an attractive area right now.-Interview with Howard Marks (11/17/2008):-What went wrong with risk management?- First of all, you need a risk manager who knows the business...