Wikipedia defines credit risk as the risk that a borrower will default on any type of debt by failing to make required payments. With the recent news regarding Argentina’s debt, this may be a good time for investors to carefully review their fixed income strategy. Two years ago, we blogged the question, “If You Borrow … Continued
Vote early and vote often is a tongue-in-cheek phrase used in relation to elections and the voting process, often with reference to Chicago and Cook County. Save early and save often is the key to wealth creation through the miracle of compound interest. Saving early is critical. A dollar saved and invested at 10% when … Continued
The whole issue of corporate tax rates has boiled to the surface, in conjunction with a recent uptick in relocations overseas. Known as inversions, some U.S. firms employ these in an effort to reduce their overall tax liability. The entire issue of corporate taxes, tax rates and the appropriate treatment of foreign income are properly … Continued
Recently the Wall Street Journal[1] reported that the largest public pension fund in America, “California Public Employees Retirement System” (known as Calpers), is reducing its exposure to hedge funds by an estimated 40%. When interviewed, a spokesman indicated Calpers has decided to take a “back to basics approach” with regard to investing and portfolio construction. … Continued
Recently, Paul Krugman, a well known Nobel Prize winning economist and a regular New York Times columnist, suggested that the wealthiest Americans wanted a depression because aggressive monetary policy has materially reduced their income from bonds and other interest-paying assets. While it is very likely that the wealthy, like the rest of us, have suffered … Continued
Everyone can agree that education is important and costly. College savings can be so overwhelming that it paralyzes some from developing and implementing an investment plan. The high and increasing costs, coupled with the uncertainty in capital markets, oftentimes creates inaction that can be detrimental to one’s long-term college savings goals. Sometimes seeing some averages … Continued
Investment strategies, of necessity, involve estimates and projections. First, investors, as part of constructing a portfolio strategy, should, in conjunction with their advisor(s), prepare a carefully developed projection of their financial outlook and objectives. Second, investors must recognize that investment decisions, designed to implement a portfolio strategy, rely on estimates of future corporate operating results, … Continued
Approximately one year ago, shortly after getting in bed for the night, I felt this intense pain in my sternum. Was I having a heart attack? Should I get up and take some Aleve? Would that mask symptoms? The thoughts began to rush at me, nearly working me into a frenzied panic, a feeling of … Continued
I’m not sure that anyone knows the answer to this. Every day, all day, CNBC features a wide range of market experts and pundits who, invariably, take positions that are 180 degrees divergent on each side of every issue. At the end of the day, you will have heard from those who believe that the … Continued
Punitive damages can be defined as a court awarded sum that is considerably or greatly higher than the measurable value of the injury. Punitive damages are meant, not to compensate the aggrieved party, but to punish the offending party for its allegedly reckless or unconscionable actions or conduct. Without attempting to resolve the differing views … Continued
Investors typically seek to identify opportunities for achieving appropriate returns by assessing the outlook based on anticipated free market forces. Government subsidies and/or mandates tend to distort free market forces with the potential for unexpected results. This phenomenon – government interference in the market process – is so wide ranging as to make it difficult … Continued
The Wall Street Journal issue of June 28, 2014 carried an article titled, “Huge Returns at Low Risk? Not So Fast.” The premise focused on what is known as “back testing”, whereby an investment analyst runs a series of computer simulations to identify an optimal portfolio of stocks that would have produced the best returns … Continued
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