Divide and Conquer ETFs

Exchange-traded products (ETPs) are a disorganized mess. The industry needs standardized product groupings so that investors have an easier time sorting and comparing funds. I propose a “first cut” classification method that sorts ETPs into four basic categories. Figure 1 illustrates the four proposed groupings by their investment objective: benchmark, strategy, hedge and active. All [...]

Apple at $2,000 as the Dow Doubles

You heard it here first − Apple stock could hit $2,000. It is possible. Also, the Dow could double in the next couple of years. It IS possible. All media people should contact me directly for details because they are too sensitive to discuss here. I do television also. Actually, I don’t believe that Apple [...]

Are You a Right Brain or Left Brain Investor?

Do you jump when you hear a good investment story, or do you wait and research the pertinent facts before committing your capital? How you invest makes a big difference in your wealth. Right brain investors respond quickly to investment ideas soon after envisioning an increase in wealth, even if the numbers don’t add up. [...]

Split the EAFE for Better Returns

Do you swing with the EAFE or do you sit on the fence between Europe and the Pacific Rim? I am a fence-sitter because splitting the EAFE has delivered better performance. The MSCI EAFE acronym stands for Morgan Stanley Capital International Europe, Australasia, and Far East. It is a benchmark of large-cap developed market stocks [...]

The Curse of the Yale Model

What has been a blessing for Yale has been a curse for most other investors. In a true “me too” fashion, thousands of institutional investment funds have switched to the “Yale Model” seeking the outsized returns that the Yale endowment has enjoyed for two decades. However, after spending billions on consultants and hedge funds, most [...]