Bill Gross must be very sad today. Mr. Gross has been involved in an ugly dispute with a neighbor. As part of that dispute, Mr. Gross played The Gilligan’s Island theme, loudly and continuously, night after night. The neighbor complained. In court. Mr. Gross’s partner, Amy Schwartz, testified to loving the “Gilligan’s Island” theme but denied playing it loud or Continue reading
Dear friends,
The waiting is, mostly, done. The American people have spoken, though I suspect that activists in both major political parties are disappointed and frustrated by what they heard. For better and worse, Republicans did not receive a second term in the White House. For better and worse, Democrats did not enjoy “the blue wave” that they anticipated.
And so we are left where we so often are: in a muddle. The control of the senate, once “the world’s greatest deliberative body” (reputedly President James Buchanan’s judgment), lies in two impending elections in Georgia. Politicians of all stripes woke on the morning of November 4th to ask the all-important question, “how’s our fund-raising for 2022 coming? Are we on track?” At least one candidate is openly mulling the timing of his announcement of his 2024 presidential bid. Miscellaneous state legislators continue to Continue reading
The scariest line of the election season appeared on the front page of The Wall Street Journal:
The U.S. stock boom has its roots in tactics that fund managers, small savers and Robinhood traders alike have applied over the past decade: Don’t hide from markets by hoarding cash.
The Dow Jones Industrial Average closed above 30000 on Tuesday for the first time, extending an eight-month rebound that has taken many analysts by surprise … The run has put the Dow up 62% from its March low, when the U.S. Federal Reserve ended a panic that wiped out trillions of dollars in investments by outlining a plan to counter the pandemic’s economic stress.
The market appears to be in a self-perpetuating upward spiral, defying the pandemic and accompanying economic woes. (“Behind Dow 30000: A Self-Perpetuating Upward Spiral,” Wall Street Journal, 11/25/2020, pg 1).
That sounds only Continue reading
How much is “enough” to retire when there are likely to be multiple decades of low returns due to high starting valuations with low yields and dividends?
Readers can skip to Continue reading
Guinness Atkinson’s groundbreaking OEF-to-ETF conversion is surging ahead. In early summer, GA filed a plan to convert two of their current funds – the four-star Dividend Builder GAINX and Alternative Energy GAAEX – directly into ETFs. Other firms have launched ETF clones of their funds, and a bunch of strategies that would normally have been launched as funds have instead followed the non-transparent, active ETF route. Guinness was the only firm bold enough to try a switchover mid-flight.
The conversions were slowed by “a thousand thoughtful questions and comments” from the SEC, according to president Jim Atkinson. In the latest round of comments, the agency has asked GA to begin incorporating concrete Continue reading
I’m writing this less than 48 hours before the end of the most divisive and likely most consequential presidential election in a hundred or a hundred and fifty years. (It depends on your view of the sea change enacted in 1932 or the tumult of 1860.) I am exceptionally distracted by the unfolding events.
In general, I have faith that things will work out okay. People are, on the whole, sensible when not terrified. And, while many of our fellow citizens are terrified – in part because conditions in many parts of the country are unremittingly hard and, in part, because political parties have learned that it’s in their best interests to enflame our worst fears – we have an okay track record of tempering our fears with Continue reading
Chuck Akre is an iconic investor, the sort of guy whose very existence vexes the efficient market advocates. Some years ago, Mr. Akre managed FBR Focus. After a dispute with the parent company (they, incorrectly, didn’t think he was worth what they were paying him), Mr. Akre left to found his own adviser and launch his own fund.
Akre Focus (AKREX) launched on August 31, 2009. Against all conventional wisdom, it’s grown to nearly $14 billion and continues to generate exceptional absolute Continue reading
Each month we chronicle the funds newly in registration with the SEC. You could think of them as akin to all of the players who declare their eligibility for the NFL draft each year. “Put me in, coach,” they cry. “I’m ready to play!”
Here’s the football math: each year, around 3500 players are eligible for the NFL draft. Two hundred fifty-four will actually get drafted. Of the drafted players and undrafted free agents, about a third make it to a training camp. By the calculations in Pro Football Reference, of those making the final roster, only 20% Continue reading
In this article, I look at Janus Henderson Flexible Bond (JANFX), BlackRock iShares Aaa – A Rated Corporate Bond ETF (QLTA), Carillon Reams Unconstrained Bond (SUBFX), BBH Income (BBNIX), T Rowe Price Multi-Strategy Total Return (TMSRX), Advisory Research Strategic Income (ADVNX), and Vanguard LifeStrategy Income Inv (VASIX) as potential income funds to own during a lost decade that starts with high valuations and low interest rates. The second section looks at why I expect the next decade to have low returns for equity and bonds. The third section looks at Risk to Reward comparisons for Continue reading
On October 26, 2020, Frank Capital Partners launched the West Hills Tactical Core Fund (LEBOX). The plan is to invest half or more of the portfolio directly, or through ETFs, in domestic large-cap stocks. The remainder will be placed in cash or options. The fund will be managed by Alan McClymonds. From 2011 to 2015 Mr. McClymonds was a consultant for Whitaker Securities in New York, NY. Whitaker’s “primary goal is to provide global liquidity in the fixed income markets,” which they do for 200 or so clients. From 2016 to present, Mr. McClymonds has been a private investor who was introduced to founder Brian Frank by a professional associate.
Three things to know Continue reading