Matthew Kenigsberg, Vice President of Investment & Tax Solutions at Fidelity Investments, summarizes the benefits of managing the impact of taxes on investments well in “Are you invested in the right kind of accounts?”
“You can’t control market returns, and you can’t control tax law, but you can control how you use accounts that offer tax advantages—and good decisions about their use can add significantly to your bottom line…” Continue reading →
David asked each of MFO’s traditional contributors to share a few words about what we’ve been thinking as we watch events, both near and distant, personal and political, transpire.
I think I’m … Continue reading →
I’m so grateful to have stable employment in a position that allowed me to – quickly and fairly painlessly – pivot to a work from home model. I have not yet encountered a task that couldn’t be completed remotely. As a matter of fact, I think I’m being more productive than ever, as we puzzle through various scenarios for offering community college classes over the summer and into the fall semester.
I find my emotions Continue reading →
David asked each of MFO’s traditional contributors to share a few words about what we’ve been thinking as we watch events, both near and distant, personal and political, transpire.
I think …
I’m starting to Continue reading →
I put some thought into the following paragraph. It is not gloom and doom, nor does it paint a rosy picture.
New cases of COVID-19 in the U.S. have stabilized at 25 thousand cases and 2,000 deaths on a daily basis which, if not improved soon, are terrifying numbers.
Worldwide, 81% of the closed cases are due Continue reading →
Since the number of funds we can cover in-depth is smaller than the number of funds worthy of in-depth coverage, we’ve decided to offer one or two managers each month the opportunity to make a 200-word pitch to you. That’s about the number of words a slightly-manic elevator companion could share in a minute and a half. In each case, I’ve promised to offer a quick capsule of the fund and a link back to the fund’s site. Other than that, they’ve got 200 words and precisely as much of your time and attention as you’re willing to share. These aren’t endorsements; they’re opportunities to learn more.
On March 19, 2020, Grandeur Peak launched the U.S. Stalwarts (GUSYX) fund, the third of their “alumni funds.” U.S. Stalwarts will invest primarily in U.S. companies with market caps at the time of purchase of $1.5 billion or more. The fund’s first portfolio disclosure reflects those emphases: 84% US and 75% mid- to large-cap stocks.
Grandeur Peak, founded in 2011 by emigres from Wasatch Advisers which is located four miles down Continue reading →
On April 30, Matthews Asia launched its Emerging Markets Equity Fund. In parsing the name, please note that “Asia” modifies “Matthews,” rather than “Emerging Markets.” That is, this will be the first global equity fund in the Matthews lineup. While this is not the first time that Matthews has considered a fund with global reach (Mr. Matthews and Andrew Foster discussed it a decade ago), this is the first time that the Matthews strategy map encompasses the whole Continue reading →
The Securities and Exchange Commission, by law, gets between 60 and 75 days to review proposed new funds before they can be offered for sale to the public. Each month, Funds in Registration gives you a peek into the new product pipeline. Most funds currently in registration are in a scramble to launch by June 30th with the hope that having a “standard reporting period” to share with investors sooner. Continue reading →
Chicago Equity Partners Balanced (MBEAX) no more. MBEAX has been a splendid performer that mixed high-quality, larger US stocks (93% mid- to mega-cap) with investment-grade bonds (99.5% BBB or above, at last reading). Effective April 17, 202, it became the AMG GW&K Global Allocation Fund (MBEAX) with a new name, new team, and new discipline. The portfolio shifts from domestic to global in both its equity and bond sleeves.
Investors should treat this as Continue reading →
Dear friends,
When I say, “I hope you’re well,” it’s far more than an opening formality.
Did you blink?
If so, you missed it. The Great Bull Market of 2020. In perhaps the shortest-lived bull market in history, the DJIA rebounded by over 21.4% in three days after The (First) Bear Market of 2020. The latter growled from 19 February – 23 March, while the latter charged from 23 – 26 March after which we had a sharp down, a sharp up, a wimpy down and Continue reading →
In this fourth of a six-part series on the Six Rules of Investing, I look at investing according to the business cycle. This article is divided into four sections: 1) The Investment Environment, 2) Assets that do well in stages of the business cycle, 3) February Fund Performance, and 4) My Target Portfolios.
How has your portfolio compared to the market or other portfolios? Does it offer sufficient reward for the risk that you are taking? Chart #1 contains the Continue reading →
Long-short funds generally position themselves as “the new 60/40,” that is, as funds appropriate as a core holding for a reasonably conservative investor. Their argument is that 60/40 funds work only when both the stock and bond markets are in a relatively good mood. A fund that simultaneously bets against wobbly companies with overvalued stocks and bets in favor of high-quality companies with undervalued ones has the prospect of earning money, or at least minimizing pain, even when markets are behaving poorly.
There are two problems with such funds. First, they Continue reading →
First Pacific Advisers, the adviser to the FPA funds, has reached an agreement with London-based Polar Capital. Under the agreement, FPA’s International Value and World Value teams – headlined by Pierre Py and Greg Herr – will operate as Phaeacian Partners, an independent subsidiary of Polar Capital. The transition from FPA to Polar would play out over six to nine months.
Phaeacian? Mysterious race, much discussed in Homer’s works. Highly advanced, great seafarers, generally hospitable. Their king was Continue reading →
One Rock Fund (ONERX) launched on March 6, 2020, the only public offering by – and only client of – Wrona Investment Management of Pinehurst, NC.
One Rock will invest in the stocks of corporations with “business momentum.” Here’s a description of the Continue reading →
In real estate, it’s all about location.
In investing, it’s all about timing.
On February 5, 2020, which the Dow at 28,807, Direxion launched the Direxion Flight to Safety Strategy ETF (FLYT). The passive fund tracks an index comprised of gold, large-cap utility stocks, and long-dated US Treasury bonds. It rebalances quarterly, with the least volatile component of Continue reading →
Fidelity has disclosed plans to underwrite their money market funds in order to keep their yield from going negative. They have also closed Fidelity Treasury Only Money Market Fund, FIMM Treasury Only Portfolio, and FIMM Treasury Portfolio, which have cumulative $85.5 billion AUM. Fidelity was concerned about the yields on T-bills which, briefly, looked like Continue reading →
Dear friends,
Welcome to spring. Meteorological spring, anyway, that brief interval when the Quad Cities are wedged between end of snow and the beginning of flood, between the end of hockey and the start of minor league baseball, between the days when you can’t imagine the end of winter and the ones where you can nearly taste the arrival of spring.
Celebrate it all, since it’s Continue reading →
A tradition dating back to the days of FundAlarm was to annually share our portfolios, and reflections on them, with you.
Four rules have governed my portfolio for the past 15 years or so.
For any goal that’s closer than 10-15 years away, stock investing is speculation. Stocks rise and fall far more dramatically than other investments and, once they’ve fallen, it sometimes feels like they can’t get up. Equity income funds are typically very conservative vehicles, and yet they took four years to regain their October 2007 peaks. International large cap core funds took seven years to reach break-even while domestic large-cap core funds were underwater for five-and-a-half years. The worst-hit categories languished for nine years.
Research conducted by T. Rowe Price and shared here, on several occasions, led me to conclude that I wouldn’t gain much from a portfolio that exceeds 50% stocks. My target allocation is 50% income (half in cash-like investments, half in somewhat riskier ones) and 50% growth (half in firms domiciled in the US and half elsewhere). Based on a review of 70 years of returns (1949-2018), this allocation would typically Continue reading →
The typical American of today has lost all the love of liberty that his forefathers had, and all their disgust of emotion, and pride in self-reliance. He is led no longer by Davy Crocketts; he is led by cheer leaders, press agents, word-mongers, uplifters.
H.L. Mencken, “On Being an American” (1922)
On balance, it is somewhat hard to believe that in a few short weeks, we have gone from the domestic markets hitting new record highs, albeit with a continuing narrowing of breadth, to what is a full blown correction, with the markets now off by more than ten percent. And as we look to Monday, the first trading day in March, the question is have we reached a floor, or is this going to continue on for some time, wiping out performance gains for all of this year and go on to erase all or a substantial part of 2019’s profits.
What triggered the sell off this past Monday, which was a global event? More than likely, it was Continue reading →
