3 Reasons to Rejoice Higher Interest Rates

Interest rates are going up. The Federal Reserve has essentially said so. They just haven’t said exactly when or by how much. Are you afraid of higher interest rates? If so, what you fear is probably the potential bad side. While they may have a dampening effect, there also are some silver linings to be [...]

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Rick Ferri’s Top Ten List of When Not To Invest

Oh, how painful it has been to learn these lessons. I’ve been around the investment industry for a long time and have made plenty of mistakes. I’ve also seen a lot of variations on the theme of investing, some of which have made the industry better and others of which seem like nothing more than [...]

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Why Optimal Portfolios Are So Difficult To Create

Harry Markowitz won a Nobel Prize in Economics in 1990 for his work on a theory of portfolio management for individual wealth holders. Since that time, Modern Portfolio Theory (MPT) has become the bedrock for creating best-practice portfolio selection methods. Creating an optimal portfolio consists of estimating a portfolio’s future risk and expected return as [...]

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So Few Generals, So Few Top Fund Managers

I was a brand-spanking new Second Lieutenant in the Marine Corps 35 years ago. We graduated 135 “butter-bars” from my Officer Candidate class. We were called that because the single, brass bar rank insignia looks like a bar of butter. We had a lot of pride and ambition on commissioning day, and all the opportunity [...]

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What CFOs Think About the Market

Tune into any financial news network and you’ll hear a continuous drumbeat of Wall Street analysts spouting their most recent stock market forecast. I find there is value to these forecasts – entertainment value – especially from the forecasters who foresee grandiose returns or impending doom. In terms of investment value, if these forecasts serve [...]

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