risk

Our take on the investing, financial, & economic themes of the day

What’s a Conservative Dividend Investor to Do?

1 December, 2015 by Matthew O'Brien, Ph.D. in Commentary
I recently helped a new institutional client rebalance its portfolio away from a heavy concentration in telecommunication, energy, and utility stocks.  This client has ongoing income needs, and the rationale for owning telecom, energy, and utilities is of course to meet these needs with ... read more...

The One Chart that Describes All the Potential Risks in 2015

6 January, 2015 by Ben O'Brien in Commentary
The biggest threats to the economy and the markets tend to be the ones that pop up out of nowhere. In 2014 while everyone was worried about interest rates rising in the U.S., another totally unexpected threat arose in the global economy, the sharp drop in oil prices. This is what former ... read more...

What if Quantitative Easing is Deflationary?

In the Wall Street Journal today economist Allan H. Meltzer argues that as a consequence of the Federal Reserve’s easy money policies, “Inflation is in our future. Food prices are leading off, as they did in the mid-1960s before the ‘stagflation’ of the 1970s. Other ... read more...

With the Market Soaring, Time to Lower Risk

18 November, 2013 by Mark O'Brien in Commentary
Sometimes you want to underperform the stock market. This may be one of those times.  As I write, the Dow Jones index is flirting with its all-time high of 16,000. Some of our core stocks are up big. There is Google up 46%, VF Corp up 57%, Becton Dickenson up  41% and Schlumberger up 36% to ... read more...

Rethinking Performance Benchmarks

16 September, 2013 by Ben O'Brien in Commentary
In the section of our website called “On Performance” we explain why the usual stock benchmarks are often not a good basis for comparison of your portfolio’s performance. This may sound surprising (and maybe self-serving) because in much of the financial world there is an obsession with beating ... read more...