Money and Finance
- 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...
- Klarman Returns Cash
Link to: Klarman returns cash [via ValueWalk]On stage at the Grant’s conference, seated on a bar stool, Seth Klarman corrected a misapprehension. This is not the first time The Baupost Group LLC, over which he presides, has returned cash to its investors....
- Hussman Weekly Market Comment: Closing Arguments: Nothing Further, Your Honor
“For as long as I can remember, veteran businessmen and investors – I among them – have been warning about the dangers of irrational stock speculation and hammering away at the theme that stock certificates are deeds of ownership and not betting...
- Mutual Fund Observer: April 1, 2013 Commentary
Found via Abnormal Returns. One addition I'd add to the list in the commentary is the Martin Focused Value Fund (MFVRX), which I believe is a little over 90% cash right now. For those interested in other managers who’ve followed Mr. Cinnamond’s...
- Pershing Square's Ackman Shorts Herbalife; Stock Skids
Ackman's presentation will also be streamed live at 9:30am today, HERE. (Reuters) - Activist investor William Ackman confirmed on Wednesday that he is betting against the stock of Herbalife Ltd (HLF.N) in a move that sent shares of the weight...
Money and Finance
With Stocks So High, Should Investors Move to Cash?
Link to article: With Stocks So High, Should Investors Move to Cash?
As stock indexes hit record highs, nervous investors increasingly face a difficult choice: Do they keep betting as heavily on the markets, or do they move more money into cash?
The answer isn't so simple.
Cutting exposure with the aim of putting cash back to work when valuations drop can be soothing at first, but maddening if stocks continue climbing. What's more, many nonprofessionals don't have the expertise to accurately gauge valuations.
And there is a fine line between adjusting exposure based on valuations and timing the market, which few individual or professional investors have done successfully.
Eric Cinnamond of Aston/River Road Independent Value is among a small group of mutual-fund managers who are comfortable letting cash pile up in their portfolios.
He believes small stocks are "outrageously expensive" and have significant risk. But his fund's huge amount of cash—around 70% of assets recently—is earning almost nothing, hurting performance as markets move higher.
For investors who are considering such a strategy, here are a few things to keep in mind.
- 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...
- Klarman Returns Cash
Link to: Klarman returns cash [via ValueWalk]On stage at the Grant’s conference, seated on a bar stool, Seth Klarman corrected a misapprehension. This is not the first time The Baupost Group LLC, over which he presides, has returned cash to its investors....
- Hussman Weekly Market Comment: Closing Arguments: Nothing Further, Your Honor
“For as long as I can remember, veteran businessmen and investors – I among them – have been warning about the dangers of irrational stock speculation and hammering away at the theme that stock certificates are deeds of ownership and not betting...
- Mutual Fund Observer: April 1, 2013 Commentary
Found via Abnormal Returns. One addition I'd add to the list in the commentary is the Martin Focused Value Fund (MFVRX), which I believe is a little over 90% cash right now. For those interested in other managers who’ve followed Mr. Cinnamond’s...
- Pershing Square's Ackman Shorts Herbalife; Stock Skids
Ackman's presentation will also be streamed live at 9:30am today, HERE. (Reuters) - Activist investor William Ackman confirmed on Wednesday that he is betting against the stock of Herbalife Ltd (HLF.N) in a move that sent shares of the weight...