Deleveraging: Were the Fears Overdone?
Monetary policy is an important wildcard, but deleveraging has faded as a headwind for U.S. economic growth and investors would be unwise to weigh it heavily in their investment decisions.
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Why Did I Diversify?
While simple 100% U.S. equity and stock/bond portfolios have outperformed highly diversified portfolios recently, highly diversified portfolios have delivered consistently superior returns over decades.
Fiscal Year 2013 in Review
Equities surged ahead during the fiscal year, while commodity-related assets and high-quality bonds struggled.
The Cash Is Not What It Seems
A closer look at the mounting cash on corporate balance sheets reveals more questions than answers as to how it may benefit shareholders.
Time to Venture … into Venture?
The venture capital model is not broken – indeed, fundamentals look better than they have for many years – but returns will likely continue to be concentrated in top-performing funds.
Leveraged Credit: Losing Upside Potential
Given lower yields, returns on high-yield bonds and leveraged loans are likely to taper off, but in a muddle-through or bear market environment their returns should compare favorably with those of equities.
Single-Family Homes – Time for Investors to Trot Out the Welcome Mat?
Fallout from the credit crisis has meant that investors can now invest in single-family homes on an institutional basis, but those choosing to do so should screen managers carefully and be mindful of the inherent risks.
Fiscal Year 2012 in Review
The risk-on/risk-off environment continued in 2012. Equities fell across the board, with U.S. markets holding up best, while “safe havens” such as sovereign bonds and gold posted solid gains.
Long-Short Hedge Funds – Bottoms Up?
After a difficult few years—capped off by the annus horribilis of 2011—are long/short hedge funds a buy … or sell?
Harvesting Ripe Fruit From a Frost-Covered Tree
The U.S. economy is still on life support, but investors should not assume that equities and credit are dead money.