Monthly Commentary

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March 2014
  • While recent equity pullbacks have provided under-exposed investors with attractive opportunities to re-enter the market, many remained spooked by memories of 2008.

  • Risk has remained low in a virtuous cycle where good news is accepted as good news and bad news is quickly discounted.

  • Many emerging economies have struggled this year, but they are generally better positioned to withstand a currency assault than they were in 1997.

  • A plan that effectively balances building wealth and controlling risk better positions investors to pursue their goals in all seasons.

February 2014
  • The Fed is handing the baton to back to the markets for pricing risk, sending volatility higher on its path back to normal.
  • Emerging markets health is vital to global growth, as they have doubled their contribution to global GDP over the past decade to nearly 40%.
  • S&P 500 corporations derive half of their revenue from overseas; global consumerism and manufacturing provide ongoing support.
  • Broad global diversification across equity and fixed income markets is the best way to protect against volatility.
January 2014
  • While the U.S. market was dominant in 2013, broad global equity diversification contributed to positive investment returns.
  • Surging equity markets were an example of “upside risk” that hit some investors hard in 2013.
  • Effective diversification should be meaningfully global within equity and fixed income, distributed broadly across asset classes and rebalanced on a periodic basis.
  • If you invest like everyone else, you likely will experience the same sub-par returns that everyone else does.
November 2010

We pointed out last month that the September surprise in equity returns was a signal to get aboard the “express elevator”— that is, it’s time for sidelined investors to get back into the equity markets. Despite an October that extended September’s dramatic surge and swept year-to-date returns to near double digits, pessimism continues to abound. Driven by strong corporate earnings and expanding global demand, the turn in the market was swift and dramatic and left many investors who missed their chance at the rally hoping for a pullback to create an attractive entry point.


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