Written by David Fabian, November 26th, 2015
Thank you notes on Thanksgiving always seem to come across as contrived rather than conveying a deeply held sense of gratitude. I don’t want to espouse a standard list of blessings that loses its emotion and gets lost in the stream of social consciousness. Yet, when I woke up this morning, I took a moment to reflect on how this journey began and where we stand today. Read more
Written by David Fabian, November 24th, 2015
When investors think of growth opportunities, their focus rarely turns to the financial sector. The business models of banks, insurance, and brokerage companies have matured to the point of taking up residence squarely in the value category. This leads to a focus on earnings, share buybacks, and dividend growth rather than capital appreciation or momentum.
Not surprisingly, the benchmark Financial Select Sector SPDR (XLF) has gained just 1% so far this year. This well-known exchange-traded fund tracks nearly 90 large-cap stocks of banking, financial, real estate, and capital markets enterprises. XLF experienced a pernicious drop during the summer sell-off, but has since managed to recover back into positive territory. Read more
Written by Michael Fabian, November 24th, 2015
Examining the markets over the last several months, it comes as no surprise that the recovery in equities has been a bit lopsided from a capitalization perspective. Large cap dominated portfolios have nearly erased their losses stemming from the August-September correction, while more growth orientated small and mid-cap strategies have lagged. From a performance perspective, small cap stock indexes are still roughly 8-10% off their 2015 highs, allowing a lot of room to play catch-up. Read more
Written by David Fabian, November 23rd, 2015
Many investors build their portfolio with the same methods that they use to cook at home. Throw together a combination of ingredients in varying quantities to create a seemingly cohesive meal. Yet at the end of the day, they probably don’t think about carefully measuring how this result was achieved or what took place to bring these individual items to a tasty conclusion. Read more
Written by David Fabian, November 18th, 2015
It’s begun. This week I have found my email inbox inundated by tax strategies designed to convey a sense of tremendous savings or value for readers. This was a real subject line that left me shaking my head: Generate tax alpha for your clients.
Really? Who comes up with this stuff? Read more