Investment Consulting
One of our fundamental responsibilities as an investment manager is to build sound investment portfolios. The objective of our portfolios is to meet the fundamental return needs of our clients while taking an acceptable level of risk. Inevitably, this requires that we take a long...
Robert Schiller, author of “Irrational Exuberance” and recent Nobel Prize winner, has been credited with predicting the last two market crashes. His preferred metric of value for the stock market is the “Cyclically Adjusted Price Earnings (CAPE)” ratio. He makes the CAPE ratio and data...
Answering the following questions requires a view on future stock and bond portfolio returns: “How much can an endowment disburse and maintain its value?” “How much do I need to save for retirement?” “What is the likelihood of doubling my account in 5 years? 10...
In our last commentary (IMC 13), we looked at rebalancing an all stock portfolio. (If you didn’t read this post, you might want to review it here before continuing.) We looked at the case of an account that only included stock mutual funds. What if...
When we manage client accounts, we typically devise asset allocation policies (or portfolio models) that specify the amount (in percentage terms) that we will try to hold of each investment option in the account. As time goes by, the investment options will inevitably have different...
