2015 may be a year when global diversification is appreciated once again. The world’s economies and central bank policies are diverging, creating conditions for widely varying results. Relative valuations among countries may be a reliable guide to future results. Global Diversification Could be 2015’s Winner. 2015 is likely to be a year when global diversification
What is an investor to do in the face of mounting evidence of an overvalued market? This question was posed by a handful of clients this week in response to last week’s blog highlighting that investors currently are downplaying risk; that several valuation measures are flashing caution warnings; and that investors should be prepared for
Why diversify—especially in years like this when the S&P 500 is doing so well? The essence of diversification is captured by the proverb: “Do not put all your eggs in one basket.” Insights into diversification were given a theoretical basis by Harry Markowitz (1952), who won the Nobel Prize for his work in 1990. Click
Stock and bond markets are recovering from the spasms felt May 22 to June 24. This week we take a close look at what just happened; review a provocative article on why bond yields may drop further; and re-state the case for investing in Emerging Markets, which have not rallied at the same pace as