August 10th, 2018 | by Gregg S. Fisher, CFA, "Invest with Reason"
Markets (equities and fixed income) have been more volatile in 2018 in the wake of rising interest rates, higher inflation, and geopolitical risk. The US stock market, underpinned by a strong economy and robust earnings growth, has outperformed foreign markets, but US equity valuations are elevated by historical standards. Most bond investments have lost money […]View Article
July 26th, 2018 | by Gregg S. Fisher, CFA, "Invest with Reason"
This year has been marked by losses in most bonds and a dramatic flattening of the interest-rate yield curve. Investors should focus on the defensive and risk-management roles of bonds in a diversified portfolio. We prefer short-term, high-quality bonds for their relatively high risk-adjusted returns and hedging quality in times of crisis. The first half […]View Article
July 11th, 2018 | by Gregg S. Fisher, CFA, "Invest with Reason"
Historically, small-cap stocks have outperformed large caps, but small-cap growth has been a weak performer. When we analyze small-cap growth stocks (US and international), we find that the asset class’ relatively poor returns can be explained by the ‘growthiest’ stocks in the category. Investors can improve investment performance by stripping out the ‘growthiest’ of small-cap […]View Article
May 1st, 2018 | by Gregg S. Fisher, CFA, "Invest with Reason"
When we analyze rolling 30-year periods back to 1926, we find that a 4% withdrawal rate runs a low risk of depleting a retiree’s portfolio. Inflation has a significant impact on the sustainability of a retirement portfolio. We prefer a total return over an income-oriented approach to generate cash flow from a retirement portfolio. When […]View Article
April 9th, 2018 | by Gregg S. Fisher, CFA, "Invest with Reason"
Many investors pay too little attention to investment returns on an after-tax basis. Active tax management strategies can boost post-tax returns by 1% annualized. Passive indexes are less tax-efficient than many investors realize, but active tax-loss harvesting can enhance returns of an index-tracking portfolio, and adding a multi-factor investment strategy can further add to returns. […]View Article