KIM: Managers with skin in game most likely to perform well
It seems perfectly logical that you want to invest with a manager or fund where the manager has a significant amount invested alongside you.
Investing Column
Articles
SKARBECK: Regulators aren’t so bad, and we really need them
while the cost of regulatory compliance can be annoying, they do serve a vital societal function—consumer protection.
KIM: Contrarian mind-set is key to unearthing opportunities
For investors, the time to be nervous is when there’s nothing but blue skies on the horizon. The time to be opportunistic is when there’s blood running down the street and the high-paid talking heads are screaming that the sky is falling.
SKARBECK: Global economy extends beyond usual suspects
the global economy extends to many regions and countries that, while smaller in economic stature, are often overlooked.
SKARBECK: Getting out of a hole requires digging by all
We live in a fantasy world if everyone thinks we need to cut back on spending unless it affects them.
SKARBECK: Businessws with ‘moats’ more likely to succeed
In economic terms, consider a business that has a “sustainable competitive advantage” that serves as a moat against the competition. A business that can stave off the competition is likely to produce attractive profits.
SKARBECK: Lackluster market forecast favors large U.S. stocks
One thing that does stand out is that, on balance, these returns are not exactly going to get investors to sit up and get excited.
SKARBECK: Finding a bright spot in dismal housing news
One analyst even declared that, relative to disposable income, housing is more undervalued than at any time in the last 35 years. So it is an attractive time to buy a house if you plan to be a long-term owner.
SKARBECK: Debt-ceiling issue has no easy solutions
The public must understand that the arguing in Washington over raising of the debt ceiling is just political posturing.
SKARBECK: Microsoft stuck in 1990s when acquiring companies
Microsoft Corp.’s acquisition of Skype for $8.5 billion, announced May 10, continues a long history of a lack of price discipline in Silicon Valley.
SKARBECK: Getting a banker’s thoughts on financial reform efforts
Dimon believes boards and regulators “are more attentive to risk” now—a duty that was sadly trumped by greed and indifference in the years leading up to the credit crisis.
SKARBECK: Inflation a growing concern beyond the United States
when it comes to global inflation, all eyes are on China, where a rapid rise in prices is causing concern.
SKARBECK: Look beyond gold for inflation hedges
gold has been in a 10-year bull market, so today’s investors aren’t exactly discovering the metal at cheap prices.
SKARBECK: Inflation worries growing, and for good reasons
As much as Federal Reserve Chairman Ben Bernanke would like to think he can pull in the reins at the right moment, the beast of inflation is difficult to control.
SKARBECK: Fed’s monetary policies drag down bond returns
Inflation is a sinister sort of tax that confiscates wealth. Bonds will lose value in an inflationary environment as interest rates rise.
HAUKE: When others panic, think about investing
It is at times like this that it pays to have a little historical perspective, a touch of experience and a steady demeanor.
SKARBECK: Japan’s rebuilding effort offers bargain opportunities
Economically, the next couple of quarters will be tough for Japanese citizens. But we wouldn’t bet against their resolve to rebuild their country.
HAUKE: Oil prices a problem that could burst bubble
We know that, combined with all the other factors, a 25-percent jump in energy prices is something to be at least a little concerned about.
SKARBECK: Reaching too far for yields may have consequences
Investors eager to capture return are frequently attracted to investments that offer high yields. But before leaping into them, they should remember the useful idiom: “There is no free lunch.”
HAUKE: Unrest around the world has roots in one thing
Just about every country in the world, with the exception of Australia, is strapped for cash.