This paper examines the diversification and inflation-hedging benefits of an allocation to real assets. Exhibits include correlation analyses, and performance data for representative commodities, energy, natural resources, and timberland managers.
A detailed discussion of how investors should protect their portfolios and allocate their assets during a bear market. Exhibits include cumulative wealth analyses, U.S. equity returns, price-earnings ratios, and global equity market valuations.
Inflation-indexed bonds, a curiosity a decade ago, are now a full-fledged global asset class.
Kicking the tires in the Land of the Rising Sun.
Investors should seek quality, not necessarily different capitalization sectors.
While rebalancing may provide a slight enhancement in returns, its primary goal is to keep asset class weights at or near target allocations in order to control risk and reduce portfolio volatility. This report outlines characteristics of the most common rebalancing strategies and issues to consider when establishing and setting a rebalancing policy.
Economic and market indicators are finally flashing green for the Land of the Rising Sun.
While most investors believe inflation is set to rise, this is hardly a foregone conclusion; indeed, the threats of high inflation and deflation both remain.
In order for future real returns to approach those of the last 45 years, unless one makes the highly optimistic assumption of a further expansion in the multiple, either real earnings must compound at a significantly higher rate, or dividend yields must rise.
Shifting exchange rate policies in Asia may push the U.S. dollar down further.