Month: March 2012

ALL SEASON INVESTING WEEKLY 04-01-2012

Top Stories Last Week Global equity markets netted one of their biggest first-quarter rise in a decade Global equity markets finished one of the best quarters in a decade. S&P 500 index rallied by 12.7%, while MSCI EAFE and Emerging market indices were up by 10.8% and 13.8%,  respectively. Market volatility dropped significantly. The U.S. Read More …

ALL SEASON INVESTING WEEKLY 03-25-2012

Top Stories Last Week Equity markets were down Global equity markets closed the week down as Chinese economy showed signs of slowdown, and disappointed European manufacturing activities and mixed US housing data captured the headline.  The S&P 500 Index was down by 0.5%, posting its worst weekly performance of the year.  MSCI EAFE index fell Read More …

Housing Starts and Building Permits – Further Signs That US Housing Market Is Stabilizing

Housing starts in the U.S. in February hovered near a three-year high and building permits rose, signalling that the industry at the heart of the financial crisis in 2008 is stabilizing. Home builders started 698,000 homes at an annual rate, in line with the median forecast of economists. Building permits increased to a 717,000 annual pace, the most since Read More …

ALL SEASON INVESTING WEEKLY 03-18-2012

Top Stories Last Week Federal Reserve Will Keep Interest Rates Close to Zero Until 2014 In Tuesday’s FOMC meeting, the Federal Reserve acknowledged economic conditions continue to improve, while noting that rising oil prices will feed higher inflation. Once again, the FOMC tempered its concerns about inflation,  arguing the impact of higher energy price will be Read More …

Portfolios and Their Performances 02-2012

In February 2012, Our dynamic models for Aggressive, Moderate, Conservative and Defensive portfolios gained 3.1%, 2.5%, 1.8% and 1.0%, respectively, in line with their respective benchmarks. The outperformances in VWO and GSG are offset by loss in GLD  (See Table 1 and Table 2). Table 1: Portfolio Performance Table 2: ETF Performance Table 3: Dynamic Portfolios Read More …

MIT Prof. Andrew Lo: Buy-and-hold doesn’t work anymore

Dr. Andrew Lo, a renowned finance professor at MIT Sloan School,  was interviewed by Charles Wallace at Money Magazine on March 2, 2012. The conversation was thought-provoking. I am quoting part of the interview here.  Prof. Lo’s views provided supports to our dynamic risk-managed multi asset investment approach to asset allocation. “…… Wallace: It seems as if big Read More …

ALL SEASON INVESTING WEEKLY 03-03-2012

Top Stories Last Week ECB Longer-term Refinancing Operation (LTRO) European Central Bank on February 29th dished out 529.5 billion Euros in three-year loans to banks. The second LTRO attracted more demand than the first implementation in December. Although the LTRO can’t save the Europe from destruction. It may ease funding pressures.   US ISM Manufacturing Index Read More …

Using Fidelity and Vanguard Commission-Free ETFs for Implementation

With a Fidelity account, investors can trade  30 iShare ETFs on-line commission-free.  With a Vanguard account, you can trade all the Vanguard-sponsored ETFs without paying commissions. To see the list of commssion-free ETFs, please visit: http://etfdb.com/type/commission-free/fidelity/ http://etfdb.com/type/commission-free/vanguard/ To save transaction costs, we can use some of the commission-free ETFs, which are close substitutes, to replace the ETFs Read More …