Is Smart Beta Smart Enough

10.14.14

Is 'smart beta' smart enough?

Investors have become fascinated with so-called “smart beta” strategies. These strategies can be interesting, but they are hardly a panacea that will solve all investors’ problems.

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Stocks vs. Bonds High Yield Munis

9.15.14

Stocks vs. bonds high yield munis

We have argued for several years that the US stock market could be in the biggest bull market of our careers. We don’t think there are many fixed-income asset classes that are attractive relative to stocks. However, high yield munis are very equity-sensitive and offer attractive yields relative to the stock market.

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Lack of corporate hubris means elongated cycle

7.17.14

Lack of corporate hubris means elongated cycle

When we started Richard Bernstein Advisors roughly five years ago, we thought the US was entering one of the biggest bull markets of our careers. Today, we are likely in the midst of this long bull market. Despite the general consensus that a bear market is on the horizon and investors’ ongoing interest in protecting potential downside risk, we do not think the Fed, investors, or corporations are yet sowing the seeds for the next recession.

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Toward the sounds of chaos

8.11.14

Toward the sounds of chaos

Stock market volatility is always a scary thing. Investors nearing retirement fear their nest eggs will evaporate. Younger investors saving for a home or a child’s college education fear their families’ futures might be in doubt. However, history suggests that allowing volatility to overrule a good investment plan tends to lead to poor performance. It’s not volatility itself that generally leads to poor longer-term performance, but rather it appears to be investors’ emotional reactions to volatility that ultimately lead to poor performance.

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FT - Investors manic for disrupter stocks

6.25.14

Financial Times - Investors manic for 'disrupter' stocks

Investors rationalised lofty valuations during the technology bubble with theories regarding the "new economy". "Disrupter" companies are today's rationalisation. Investors seem willing to pay outrageous valuations for disrupter companies because the companies are supposedly changing the world and have no relationship to the economic cycle, to Washington or to geopolitical events.

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