Perspectives Archive - December 2009, Page 1

Bill Gross looks toward equities.

Smead Capital Management | William Smead, CIO | 12-15-2009
Underestimated Sector Opportunity: Toll Bridges
Toll bridge companies are undervalued and offer long-term potential.

Barel Karsan | Saj Karsan | 12-14-2009
A Housing Comeback
For those interested in gauging the health of the housing industry, consider examining inventory data.

Lord Abbett | Milton Ezrati, Partner and Senior Economist and Market Strategist | 12-14-2009
Slowing the Gold Rush
This year's sharp rise in gold prices is a bet against the Federal Reserve's ability to head off inflation. Investors may want to hedge that bet going forward.

US Global | Romeo Dator | 12-14-2009
China as a Nuclear Power Play
With loud calls coming from around the world for China to cut its output of greenhouse gases, a significant portion of new power will be nuclear.

Anderson Griggs | Kendall J. Andersen, CFA | 12-10-2009
Hiring High, Firing Low
The recent list of "losers" could represent a very good place to go looking for a money manager.

Shenkman Capital Management | Mark Shenkman | 12-10-2009
Investor Amnesia
As the year ends, portfolio managers with surprisingly short memories have reverted back to seeking the highest risk/reward opportunities.

Amateur Asset Allocator | Kyle Bumpus | 12-09-2009
The Best Roth IRA Advice: Start Now
The very best Roth IRA advice is also the simplest, and one that is often overlooked in these types of articles: start now! Right this minute!

University of Pennsylvania (Wharton) | 12-09-2009
A Race to the Bottom: Assigning Responsibility for the Financial Crisis

University of Pennsylvania (Wharton) | Knowledge@Wharton | 12-09-2009
So You Want to Live to 100? More of Us Will, and Here Is What Life Might Look Like
The implications of longer lifespans are enormous for everything from retirement planning and health care costs to new workplace models.

Amateur Asset Allocator | Kyle Bumpus | 12-08-2009
Year End Tax Strategies
While taxes aren't technically due until April of next year, most of the techniques to manage this year's tax bill must be completed by January 1st.

American Banking News | 12-08-2009
Citgroup, Inc. and Wells Fargo at Odds with Fed over TARP Repayment
Officials at Citigroup Wells Fargo are in intense discussions with the government over the scope of capital requirements the banks would need to exit the Troubled Asset Relief Program.

Barel Karsan | Saj Karsan | 12-08-2009
Allocating Unused TARP Funds
With the U.S. announcing that usage of TARP funds will be lower than anticipated, the government is currently looking for ways to effectively deploy some of those funds as further stimulus.

Baseline Scenario | Simon Johnson | 12-08-2009
Faulty Case for Large Integrated Financial Groups
Our top bankers are publicly and blatantly proposing the recipe for repeated debilitating bailouts. This is an anti-growth and anti-jobs agenda.

John Wasik | John Wasik | 12-08-2009
Obama and Copenhagen
Climate change is good for business and has the potential to boost economic growth.

Patterson Advisors | David C. Patterson, Erin Preston | 12-08-2009
A Better Way to Give
Charitable gift funds provide a better way to gift and at the same time maximize the amount of gifts you can give to your favorite charities.

QFinance | Ian Fraser | 12-08-2009
Propping Up Failures Only Prolongs Recession
Are governments overly eager to lend a hand to the casualties of recession such as failing banks and U.S. car manufacturers?

Sidoxia Capital Management | Wade W. Slome, CFA, CFP | 12-08-2009
Passive vs. Active Investing: Darts, Monkeys & Pros

The Pragmatic Capitalist | 12-08-2009
The Consumer Credit Crunch Goes On...
The market may rally in the near-term, but eventually the long-term structural problems will catch up with us all.

The Pragmatic Capitalist | 12-08-2009
A Real-Time Look at Risk Management
Knowing how to avoid the landmines is the best path to success.

US Global | Frank Holmes, CEO | 12-08-2009
Gold's Long-term Rally Intact
There's a lot of speculation in the market that gold has gone up too far too fast and is destined for a sharp correction.

Advisors Capital Management | Dr. Charles Lieberman, CIO | 12-07-2009
Recovery on Track; Buy Equities, Sell Bonds
The economy continues to remain on a solid upward trajectory, with the latest employment data suggesting that a stronger growth path than observed coming out of the prior two recessions.

Amateur Asset Allocator | Kyle Bumpus | 12-07-2009
Putting the Real Estate Crash in Perspective
Just as everybody "knew" real estate was the quickest way to riches just a few years ago, today everybody "knows" real estate is a high-risk investment with more losses to come.

American Banking News | Mitch Jaworski | 12-07-2009
U.S. Gov't to Slash Estimate of TARP Cost by $200 Billion
The Obama Administration is expected to announce a drastic reduction to its cost estimate of the Troubled Asset Relief Program (TARP).

American Banking News | 12-07-2009
Bank of America Provides 600,000 Trial Modifications to Homeowners
Bank of America announced on December 7th that they had provided mortgage relief via concluded and trial modifications to more than 600,000 homeowners since January of 2008.

American Banking News | 12-07-2009
Visa, MasterCard and American Express Questioned over Mystery Credit Card Charges
The United States Senate has requested information as part of a continuing investigation as to whether or not consumers were mislead into enrolling into online discount clubs.

American Banking News | 12-07-2009
Bank of America Stock Sale Largest Since 2000
BofA raised $19.3 billion by selling new securities in the largest sale of preferred shares of stock by a public U.S. company during the last decade.

American Banking News | 12-07-2009
Federal Reserve Says Bank of America Must Sell Some Operations
As part of its plan to repay its bailout funds under TARP, the Fed is requiring BofA to decide which businesses it can sell to generate capital by the beginning of the summer.

American Banking News | 12-07-2009
Citigroup Executives Say Treasury Department Inaction Preventing TARP Repayment
The Treasury Department's refusal to sell its 34% ownership stake in Citigroup may be preventing the bank's plans to repay nearly $20 billion worth of loans under TARP.

American Banking News | Mitch Jaworski | 12-07-2009
FDIC Shutters Six More Banks, Total '09 Failures Hit 130
The Federal Deposit Insurance Corporation announced Friday it shuttered six more banks, bringing total bank failures in 2009 to 130.

Baseline Scenario | James Kwak | 12-07-2009
The Importance of Capital Requirements
Arnold Kling's theory of the financial crisis and what we should learn from it.

Baseline Scenario | Simon Johnson | 12-07-2009
Measuring the Fiscal Costs of Not Fixing the Financial System

Baseline Scenario | James Kwak | 12-07-2009
Why Did Bank of America Pay Back the Money?

Baseline Scenario | 12-07-2009
Buffett and Geithner

Hussman Funds | John P. Hussman, Ph.D. | 12-07-2009
Credit Crises Generally Require Multi-Year Adjustments

INSEAD | Theo Vermaelen, Christian Wolff | 12-07-2009
How to Save Banks Without Using Taxpayers' Money
In the recent financial crisis, taxpayers in many countries had to pick up the bills that resulted from governments bailing out banks. Today, policymakers are searching for alternatives.

Current Perspectives

Perspectives Archive:

• December 2009, Page 1, Page 2
• November 2009, Page 1, Page 2
• October 2009, Page 1, Page 2
• September 2009
• August 2009
• July 2009
• June 2009
• May 2009

Many portfolio managers, research chiefs, and advisors take the time to express their opinions about the markets, individual stocks, or other items on their minds. Some fund shops publish more frequently--on a monthly or even weekly basis. 

If you are interested in contributing to Perspectives, please email Liana Madura.

Recent Commentary
Baseline Scenario | Simon Johnson | 12-31-2009
Lessons Learned from the 1990s
Government officials are facing familiar economic issues--this time on their own turf.

Baseline Scenario | Simon Johnson | 12-31-2009
Lessons Learned from the 1990s
Government officials are facing familiar economic issues--this time on their own turf.

Diamond Hill | Christopher A. Welch, CFA | 12-31-2009
Managing Risk and What We Learned from the Crisis
Opportunities can surface during the most volatile times.

Nuveen Mutual Funds | Nuveen Investments | 12-31-2009
Muni Bonds: What to Expect in 2010
Nuveen Investments on what powered the 2009 rally and potential 2010 developments.

Turner Investment Partners | Turner Investment Partners | 12-31-2009
Stock Market Finishes Strong in 2009
Momentum created during 2009 should drive the market forward for the next few years.

Amateur Asset Allocator | Kyle Bumpus | 12-30-2009
Small Business Financing For Beginners
When you decide to start a small business or need small business financing to help expand your existing business, there are a number of ways to go.

American Banking News | Debbie Dragon | 12-30-2009
Will Congressional Bailouts Stop Sinking the Ship?
Now that several months have passed since the bailouts, did they work?

Amateur Asset Allocator | Kyle Bumpus | 12-29-2009
Interest Only Mortgage Pros and Cons
What they are, when they make sense, and when to stay away.

INSEAD | Paul R. Kleindorfer | 12-29-2009
Coping with Copenhagen
How well-prepared companies are to digest political and economic uncertainties in the climate change area will be central to profitability.

Amateur Asset Allocator | Kyle Bumpus | 12-28-2009
Even Very Young Investors Should Own Bonds
Why you need bonds even if you're 20.

Barel Karsan | Saj Karsan | 12-28-2009
The Premium on Shareholder Friendly
In theory, there is no value created or destroyed as a firm issues a dividend. In practice, however, companies that pay dividends enjoy higher valuations.

Lord Abbett | Milton Ezrati, Partner and Senior Economist and Market Strategist | 12-28-2009
Budget Blues
Little in Washington points to a fulfillment of the market's needs as 2009 draws to a close, but there is reason to believe the administration and Congress will respond as 2010 progresses.

The Pragmatic Capitalist | TPC | 12-28-2009
The 5 Biggest Risks of 2010
Although the crisis appears long behind us, it's important to keep an eye on the bigger picture.

US Global | Frank Holmes | 12-28-2009
Gold is the Decade's Best
The decade that ends Thursday is on track to be the worst in recorded history for the U.S. stock market.

Sidoxia Capital Management | Wade Slome, CFA, CFP | 12-23-2009
Can the Lost Decade Strike Twice?
Wade Slome, President and Founder of Sidoxia Capital Management, sees a brighter decade ahead for U.S. equities.

Smead Capital Management | William Smead, CIO | 12-22-2009
Watershed Events
We may be entering a new phase that will see the most out of favor sectors produce the best performance over the next ten years.

Advisors Capital Management | Dr. Charles Lieberman, Chief Investment Officer | 12-21-2009
Looking Backward to Look Forward
The economic environment is vastly improved at the end of 2009 compared to the chaos that reigned a year ago.

Royce Funds | Steven G. McBoyle, Portfolio Manager | 12-21-2009
The Art and Science of Small- and Mid-Cap Investing
Royce Funds discusses their SMid-Cap portfolio strategies and where they see opportunities.

US Global | Brian Hicks and Evan Smith | 12-21-2009
Holiday Season Good for Oil Stocks
We are approaching the start of a seasonal climb in the price of crude oil that could present a good investment opportunity in energy-related stocks.

Amateur Asset Allocator | Kyle Bumpus | 12-20-2009
Finding the Best Life Insurance for Your Needs
Consider your age, health, and short- and long-term goals.

Barel Karsan | 12-17-2009
The Hidden Costs of the Bailouts
The bailouts of the U.S. financial and auto sectors set a dangerous precedent for international trade.

E*TRADE/Kobren Insight Management | Chris Keith, Director of Fixed Income, E*TRADE; VP and FI Portfolio Manager, Kobren | 12-17-2009
Fixed-Income Market Commentary: Smooth Sailing Interrupted
Markets do not respond well to the unknown, and right now we do not know if Dubai's debt struggle is an isolated incident.

E*TRADE/Kobren Insight Management | Rusty Vanneman, CFA, Director of Research, E*TRADE; CIO, Kobren | 12-17-2009
The Biggest Mistake Investors Make
Fixed income and gold are the latest performance chaser traps.

Royce Funds | 12-17-2009
Finding Value in Foreign Small-Cap Stocks
Royce's David Nadel on applying a value approach to non-U.S. small caps.

Turner Investment Partners | Bill McVail, Senior Portfolio Manager; Halie O'Shea, Portfolio Manager; Jason Schrotberger, Portfolio Manager; and Eric Turner, Analyst | 12-17-2009
Harley, Honda, and Sony: the Leaner, Meaner Machines
The brand power of Harley-Davidson, Honda Motor, and Sony will once again likely pay off, especially as the global economy picks up steam and consumers' discretionary spending becomes less restrained.

INSEAD | 12-16-2009
Breaking the Bank: Finding Value amid the Debris
INSEAD Professor of Banking and Finance Jean Dermine stresses looking toward long-term value rather than short-term cash flow.

Matthews Asia Funds | J. Michael Oh, Portfolio Manager | 12-16-2009
Technology: Powering Asia's Growth
Despite the significant growth we have already seen in Asia's technology sector in the past decade, we believe its best days are still ahead.

Merk Funds | Axel Merk, President and Chief Investment Officer | 12-16-2009
Fed Tightening? Give Us a Break!
There is no intent on tightening anytime soon despite recent signs of an economic pickup.

Savant Capital Management | SavantCapital | 12-16-2009
Minimize Your Taxes With These Charitable Giving Ideas
Proper planning can create significant tax benefits.

Schreiner Capital Management | Roger J. Schreiner, CEO | 12-16-2009
Diversification is Not Enough
Traditional methods of diversification fall short on risk management.