Dear friends,
Winter is coming.
I’m so thankful.
And welcome to the modestly delayed December issue of the Mutual Fund Observer.
Traditionally, year’s end has been a slower time. The growing season has ended, and both the farm fields and the sports fields lie mostly empty in this part of the country. Going out at night is just a touch less attractive when “night” settles Continue reading →
It is that time of the year for the prognosticators to make their forecasts of what the markets will be like next year and perhaps for the adventurous few to project out the next ten to thirty years. “Do I have enough saved to retire if the stock and bond markets do not keep up with inflation for twenty years?” It is not a rhetorical question to ask ourselves.
I don’t want to be the Grinch who steals Christmas, but I hope for the best and prepare for lower long-term returns. Enjoy your favorite holiday meals, especially the desserts.
After reviewing Continue reading →
In everyday language, we use “chaos” to mean complete disorder or randomness – like a toddler’s playroom after a long afternoon or a desk buried under scattered papers. This kind of chaos implies there’s no underlying order or pattern at all. It suggests a temporary state of disarray that can be resolved or brought back to order.
There is, however, a second use of the term. In chaos theory, “chaos” has a precise and quite different Continue reading →
A post on our Discussion Board recently called attention to two Closed End Funds: Barings Corporate Investors (MCI) and Barings Participation Investors (MPV).
FundAlarm (1996-2011), for which I penned a monthly column, was the site that gave rise to MFO. I was drawn to Fund Alarm long ago by the voice of its founder, Roy Weitz. During the lunatic optimism and opportunism of the 1990s (who now remembers Alberto Vilar, the NetNet and Nothing-but-Net funds, or mutual funds that clocked 200-300% annual returns?), Mr. Weitz and Morningstar’s John Rekenthaler spent a lot of time kicking over piles of trash – often piles that had Continue reading →
President-elect Trump is picking his staff appointees who are perceived by some to be controversial, unqualified, or even extremists. The justification is often that they are disruptors who will challenge the status quo. The rhetoric is increasing about adding tariffs, eliminating agencies, reducing regulations, and cutting Federal spending and staff. Rhetoric moves markets. This article is about protecting our portfolios from chaos during times of high uncertainty.
During the first three years of President Trump’s first term, Federal spending increased by nine percent after adjusting for inflation. This was partly because the 2017 tax cuts did not generate sufficient growth to pay for themselves. During the next four years with the pandemic-era stimulus, Federal spending increased by an additional seventeen percent adjusted for inflation. Federal spending is Continue reading →
The Intrepid Small Cap Fund was reorganized into the Intrepid Capital Fund on November 22. Eric Cinnamond managed the Intrepid Small Cap Composite from 1998-2010 and the Intrepid Small Cap Fund from 2005-2010. Jayme Wiggins took over the Intrepid Small Cap Fund upon Eric’s departure in 2010. Jayme Wiggins managed the fund using the same absolute return investment strategy until September 2018. Both are now part of Palm Valley Capital Management.
The Oakmark U.S. Large Cap ETF is in Continue reading →
