Archive for December, 2012

Year End Special

December 28, 2012

Looking Back at 2012

With 2012 drawing to a close, we are taking a look back at this year’s five most popular episodes for WEALTHTRACK. Not surprisingly, our top five interviews include value investors such as the Yacktman Fund’s Don Yacktman, First Eagle Global’s Matt McLennan and a rare interview with Fairholme Fund’s Bruce Berkowitz. With market volatility and central bank moves dominating the headlines, it’s also no surprise that our discussion on risk with MIT professor Dr. Andrew Lo was the most popular interview in 2012, as well as a conversation with noted Fed watcher Paul McCulley. You’ll see why the views of some of our WEALTHTRACK regulars are still relevant! Continue Reading »

Premium: Look Back at 2012

December 26, 2012

With 2012 drawing to a close, we are taking a look back at this year’s five most popular episodes for this week’s WEALTHTRACK PREMIUM. Not surprisingly, our top five interviews include value investors such as the Yacktman Fund’s Don Yacktman, First Eagle Global’s Matt McLennan and a rare interview with Fairholme Fund’s Bruce Berkowitz. With market volatility and central bank moves dominating the headlines, it’s also no surprise that our discussion on risk with MIT professor Dr. Andrew Lo was the most popular interview in 2012, as well as a conversation with noted Fed watcher Paul McCulley. You’ll see why the views of some of our WEALTHTRACK regulars are still relevant!

 

 

Dr. Andrew Lo- February 24, 2012

Our most popular interview of 2012 addresses the major worry on most investors’ minds- managing risk and volatility in their portfolios. At the air time of this interview, the CBOE Market Volatility Index, or VIX, a measure tracking price movements of the S&P 500, had fallen recently, but it remained to be seen how low volatility could go. An award-winning professor of finance at MIT and founder of AlphaSimplex Group, an alternative investment firm specializing in absolute return strategies, Dr. Lo explained that as markets become more complex, volatility will be here to stay… and through diversification, investors can manage this risk- a WEALTHTRACK tenet! Dr. Lo will also be appearing on WEALTHTRACK again in early 2013- stay tuned!

Watch the full episode here.

Paul McCulley and Bill Miller- April 6, 2012

New facts require new approaches. That is another theme we have been preaching on WEALTHTRACK since our launch in 2005. And with unprecedented central bank moves across the globe, investors have struggled to make sense of these paradigm shifts and how to adapt their portfolios. In this WEALTHTRACK exclusive, former PIMCO senior partner Paul McCulley, now Chair at the Global Interdependence Center, and legendary investor Bill Miller of Legg Mason Capital Management, discussed the ongoing unwinding of global consumer and government debt and what our new approaches should be. Their frank conversation and ability to break down these complex global moves makes this episode worth re-watching!

Watch the full episode here.

Don Yacktman- January 27, 2012

Investor confidence dwindled in 2012, so it’s no wonder Don Yacktman’s interview was a popular choice for WEALTHTRACK viewers this year. His flagship Yacktman Fund ranked in the top one percent of its category for the past three, five, ten, and fifteen year periods- one of the reasons the team was a finalist for Morningstar’s Domestic-Stock Manager of the Year in 2011. When we spoke with Yacktman in January, he described the opportunities he saw in the stock market as “amazing”- you’ll want to revisit this interview to hear why and what companies Yacktman’s been eyeing this past year.

Watch the full episode here.

 

Bruce Berkowitz- October 12, 2012

“Ignore the crowd” is the motto of this Great Investor guest. And Bruce Berkowitz of The Fairholme Fund has had his work cut out for himself defending it, especially in 2011 and 2012. In this rare interview, the Morningstar Domestic Equity Fund Manager of the Decade explained his controversial concentration in a few unloved companies- AIG, Sears Holdings, Bank of America- and why those companies had more to offer investors than just negative headlines. Of note, investors who stuck with Fairholme were rewarded in 2012 for weathering the storm!

Watch the full episode here.

 

Matthew McLennan- September 21, 2012

Our fifth most popular interview of 2012 questioned whether the sense of equilibrium that seemed to be returning to the global financial system was justified- at the air time of this interview, the VIX had dropped to its lowest levels in five years. Matthew McLennan, portfolio manager of the five-star rated First Eagle Global Fund and successor to the legendary Jean-Marie Eveillard, described his concerns about what lurked below the seemingly placid financial surface- what he called a “collision of macroeconomic tectonic plates.” This interview is a good reminder to investors to always have some ballast in your portfolio, no matter how the markets appear.

Watch the full episode here.

ON THE BOOKSHELF

December 21, 2012
“Everyone I know who has read it has been mesmerized. And as Mae West used to say, goodness had nothing to do with it!” “Another much mentioned favorite among investment pros is The Signal and the Noise by Nate Silver, a now famous political analyst who tackles the art of prediction and his thoughtful approach to it in a wide range of areas, from economics to terrorism to weather, baseball and the markets. “Behavioral economics is making more and more sense. Who better than Nobel Laureate Daniel Kahneman and his new book, Thinking, Fast and Slow, to help us understand how we think, react and make decisions in all phases of life including investing?”

Watch this Episode

David Rolley & Rupal Bhansali: The Tug of War Between Stocks and Bonds

December 21, 2012

Over the last year the wisdom of stock rejection and bond acceptance has been challenged by the markets. Stocks have had a remarkably good year.  The S&P 500 is up double digits as are the NASDAQ, major European and emerging market indices.  Meanwhile there is huge divergence in bond performance. Ten-year treasuries have lagged significantly. However other specific bond sectors such as high-yield bonds have delivered equity-like returns as have emerging market issues.

So where in the world should you look for opportunities in 2013?  

Two global investors, both with excellent track records- one in stocks, the other in bonds- are our WEALTHTRACK guests this week. Rupal Bhansali is a star global stock manager who is now the Chief Investment Officer of International Equities at Ariel Investments.  David Rolley is co-head of the Global Fixed Income Group at Loomis Sayles and co-portfolio manager of the firm’s flagship Loomis Sayles Global Bond Fund.
They discuss the balancing act between stocks and bonds in their global markets outlook. 

WEALTHTRACK Episode #926; Originally Broadcast on December 21, 2012

Listen to the audio only version here:
Rolley & Bhansali

Explore This Episode

We have compiled additional information and content related to this episode.
[wptabs mode=”horizontal”] [wptabtitle] Newsletter[/wptabtitle] [wptabcontent]Consuelo MackAs we head into the Christmas holiday week, we are thinking about how far we have come and how much more we have to consider as investors. We have survived the European financial crisis and the election. The U.S. economy has avoided recession despite the headwinds of the looming fiscal cliff, recession in Europe, slowdown in China, and Hurricane Sandy’s devastating rampage in New York, New Jersey, and Connecticut. As of this writing, there has been no agreement reached between the White House and Congress. The Republican led House narrowly passed a federal spending cut bill. According to Bloomberg, the vote was 215-209 “with 21 Republicans voting no and no Democrats voting in favor.” House Speaker John Boehner’s Plan B includes the once unthinkable, a tax increase on wealthy Americans, in this case those with annual income over $1 million dollars. The White House has said it will veto it.

Time for a deal is really running out. The Senate is supposed to return December 27th, meaning only a few days to reach an agreement before the automatic “fiscal cliff” cuts and tax increases of more than $600 billion take effect. It’s a very scary scenario.

Meanwhile, how do you feel about your portfolio this year? If you are similar to the vast majority of investors you are probably leery of stocks, resigned to bonds, and grateful for anything yielding more than the 2% or less offered on ten-year treasury notes this year.

In fact, the trend away from stocks and into bonds has grown more pronounced since the 2008 financial crisis among both individual and institutional investors. Do these gigantic shifts still make sense? Over the last year, the wisdom of stock rejection and bond acceptance has been challenged by the markets. Stocks have had a remarkably good year, especially considering all of the uncertainties buffeting investors, from the Eurozone crisis to a slowdown in global growth, to the U.S. election. The S&P 500 is up double digits as is the NASDAQ and major European and emerging market indices.

There has also been a huge divergence in bond performance. Ten-year treasuries have lagged while other bond sectors, such as high yield bonds and emerging market issues, have delivered equity like returns.

Where in the world should you look for opportunities in 2013? Two global investors are joining us this week, both with excellent track records, one in stocks and one in bonds, and both are new to WEALTHTRACK.

Rupal Bhansali is a star global stock manager, who is now the Chief Investment Officer of International Equities at Ariel Investments and portfolio manager of two new funds there, Ariel International Equity and Ariel Global Equity. Prior to joining Ariel last year, Bhansali spent a decade at Mackay Shields, where she ran a top decile performing, five star-rated international equity fund.

David Rolley is co-head of the Global Fixed Income Group at Loomis Sayles and co-portfolio manager of the Loomis Sayles Global Bond Fund, as well as their International Bond and Global Equity and Income funds. Over the years, Dave and his team have been recognized as best in their categories by Morningstar and Lipper for their long-term performance.

I’ll begin the interview by asking them what surprised them the most in the market in 2012. You won’t want to miss our Action Point this week, especially if you still have some Christmas shopping to do!

Have a great weekend, a Merry Christmas, and make the week ahead a profitable and a productive one!

Best regards,
Consuelo[/wptabcontent] [wptabtitle]Guest Info[/wptabtitle] [wptabcontent]

David Rolley

Vice President, Global Fixed Income Group
Loomis Sayles & Company

 

Rupal Bhansali

Chief Investment Officer, International Equities
Ariel Investments[/wptabcontent] [wptabtitle]Action Point[/wptabtitle] [wptabcontent]

“Everyone I know who has read it has been mesmerized. And as Mae West used to say, goodness had nothing to do with it!” “Another much mentioned favorite among investment pros is The Signal and the Noise by Nate Silver, a now famous political analyst who tackles the art of prediction and his thoughtful approach to it in a wide range of areas, from economics to terrorism to weather, baseball and the markets. “Behavioral economics is making more and more sense. Who better than Nobel Laureate Daniel Kahneman and his new book, Thinking, Fast and Slow, to help us understand how we think, react and make decisions in all phases of life including investing?”

Watch this Episode

[/wptabcontent] [wptabtitle]One Investment[/wptabtitle] [wptabcontent]

BHANSALI: “CONTROVERSIAL” IDEA: Japanese multinational companies

“This will prove to be a very contrarian, possibly controversial idea for people, but that’s exactly what we at Ariel do. We try to pick the best investment ideas before the market discovers it, so here I go. I would say that the biggest mistake people are making in their portfolios today is not owning Japanese multinational companies. You know, everybody wants to own emerging markets. Japan is viewed as a submerging market. I think that’s where you go, because some of these Japanese multinationals- Toyota, Nintendo, Canon, and I can give you a string of names like that. I don’t mean Japan, the domestic stocks, but I mean the multinationals. I think they have extremely good products. They’re very competitive, and they have the global marketplace as their opportunity. So no matter what happens to Japan, they will sell their wares in overseas markets. And they’re very undervalued. You get four to five percent dividend yields in a stock like Canon. I mean, this is unheard of in Japanese markets. They’ve corrected 75% from the peak while the U.S. market of the same period, about the last 25 years, is up 500%. Japan is down 75%. Enough is enough. All good things will come to an end. All bad things will come to an end.” – Rupal Bhansali

 

ROLLEY: DECENT YIELD: Emerging market corporate debt and actively managed domestic bank loan portfolios

“I think that the two fixed income ideas that probably will not break your heart over the next year would be emerging market corporate debt… which I’ve talked about and, to go domestically, bank loan portfolios but that are actively managed. Again, now you’re at the top of the capital structure, and you have a decent yield. We’re talking about a flow income of over four percent, so that’s… in a dangerous fixed income landscape, that’s a relatively safe place to be.” -David Rolley

[/wptabcontent] [wptabtitle]Transcript[/wptabtitle] [wptabcontent]WEALTHTRACK transcripts are now included in WEALTHTRACK Premium subscriptions. Click here to read the transcript or subscribe.

 

You can also purchase and download the transcript separately safely and securely with your credit card or PayPal account. You will need the free Adobe Acrobat Reader (Mac/Win) or Preview (Mac) to view and print the transcript.
WEALTHTRACK transcripts are available individually for $4.99. Click here to purchase a copy.
[/wptabcontent] [wptabtitle]Purchase DVD[/wptabtitle] [wptabcontent]Please check back for availability.[/wptabcontent] [wptabtitle]Archive[/wptabtitle] [wptabcontent]There are no archive episodes for these/this guest(s).[/wptabcontent] [/wptabs]

 

Premium: David Rolley & Rupal Bhansali

December 19, 2012

The Tug of War Between Stocks and Bonds

Over the last year the wisdom of stock rejection and bond acceptance has been challenged by the markets. Stocks have had a remarkably good year.  The S&P 500 is up double digits as are the NASDAQ, major European and emerging market indices.  Meanwhile there is huge divergence in bond performance. Ten-year treasuries have lagged significantly. However other specific bond sectors such as high-yield bonds have delivered equity-like returns as have emerging market issues.

So where in the world should you look for opportunities in 2013?  

Two global investors, both with excellent track records- one in stocks, the other in bonds- are our WEALTHTRACK guests this week. Rupal Bhansali is a star global stock manager who is now the Chief Investment Officer of International Equities at Ariel Investments.  David Rolley is co-head of the Global Fixed Income Group at Loomis Sayles and co-portfolio manager of the firm’s flagship Loomis Sayles Global Bond Fund.

They discuss the balancing act between stocks and bonds in their global markets outlook. 

WEALTHTRACK Episode #926; Originally Broadcast on December 21, 2012

Explore This Episode

We have compiled additional information and content related to this episode.
[wptabs mode=”horizontal”] [wptabtitle] Newsletter[/wptabtitle] [wptabcontent]Consuelo MackAs we head into the Christmas holiday week, we are thinking about how far we have come and how much more we have to consider as investors. We have survived the European financial crisis and the election. The U.S. economy has avoided recession despite the headwinds of the looming fiscal cliff, recession in Europe, slowdown in China, and Hurricane Sandy’s devastating rampage in New York, New Jersey, and Connecticut. As of this writing, there has been no agreement reached between the White House and Congress. The Republican led House narrowly passed a federal spending cut bill. According to Bloomberg, the vote was 215-209 “with 21 Republicans voting no and no Democrats voting in favor.” House Speaker John Boehner’s Plan B includes the once unthinkable, a tax increase on wealthy Americans, in this case those with annual income over $1 million dollars. The White House has said it will veto it.

Time for a deal is really running out. The Senate is supposed to return December 27th, meaning only a few days to reach an agreement before the automatic “fiscal cliff” cuts and tax increases of more than $600 billion take effect. It’s a very scary scenario.

Meanwhile, how do you feel about your portfolio this year? If you are similar to the vast majority of investors you are probably leery of stocks, resigned to bonds, and grateful for anything yielding more than the 2% or less offered on ten-year treasury notes this year.

In fact, the trend away from stocks and into bonds has grown more pronounced since the 2008 financial crisis among both individual and institutional investors. Do these gigantic shifts still make sense? Over the last year, the wisdom of stock rejection and bond acceptance has been challenged by the markets. Stocks have had a remarkably good year, especially considering all of the uncertainties buffeting investors, from the Eurozone crisis to a slowdown in global growth, to the U.S. election. The S&P 500 is up double digits as is the NASDAQ and major European and emerging market indices.

There has also been a huge divergence in bond performance. Ten-year treasuries have lagged while other bond sectors, such as high yield bonds and emerging market issues, have delivered equity like returns.

Where in the world should you look for opportunities in 2013? Two global investors are joining us this week, both with excellent track records, one in stocks and one in bonds, and both are new to WEALTHTRACK.

Rupal Bhansali is a star global stock manager, who is now the Chief Investment Officer of International Equities at Ariel Investments and portfolio manager of two new funds there, Ariel International Equity and Ariel Global Equity. Prior to joining Ariel last year, Bhansali spent a decade at Mackay Shields, where she ran a top decile performing, five star-rated international equity fund.

David Rolley is co-head of the Global Fixed Income Group at Loomis Sayles and co-portfolio manager of the Loomis Sayles Global Bond Fund, as well as their International Bond and Global Equity and Income funds. Over the years, Dave and his team have been recognized as best in their categories by Morningstar and Lipper for their long-term performance.

I’ll begin the interview by asking them what surprised them the most in the market in 2012. You won’t want to miss our Action Point this week, especially if you still have some Christmas shopping to do!

Have a great weekend, a Merry Christmas, and make the week ahead a profitable and a productive one!

Best regards,
Consuelo[/wptabcontent] [wptabtitle]Guest Info[/wptabtitle] [wptabcontent]David Rolley
Vice President, Global Fixed Income Group
Loomis Sayles & Company

Rupal Bhansali
Chief Investment Officer, International Equities
Ariel Investments[/wptabcontent] [wptabtitle]Action Point[/wptabtitle] [wptabcontent]

“Everyone I know who has read it has been mesmerized. And as Mae West used to say, goodness had nothing to do with it!” “Another much mentioned favorite among investment pros is The Signal and the Noise by Nate Silver, a now famous political analyst who tackles the art of prediction and his thoughtful approach to it in a wide range of areas, from economics to terrorism to weather, baseball and the markets. “Behavioral economics is making more and more sense. Who better than Nobel Laureate Daniel Kahneman and his new book, Thinking, Fast and Slow, to help us understand how we think, react and make decisions in all phases of life including investing?”

Watch this Episode

[/wptabcontent] [wptabtitle]One Investment[/wptabtitle] [wptabcontent]

BHANSALI: “CONTROVERSIAL” IDEA:  Japanese multinational companies

“This will prove to be a very contrarian, possibly controversial idea for people, but that’s exactly what we at Ariel do. We try to pick the best investment ideas before the market discovers it, so here I go. I would say that the biggest mistake people are making in their portfolios today is not owning Japanese multinational companies. You know, everybody wants to own emerging markets. Japan is viewed as a submerging market. I think that’s where you go, because some of these Japanese multinationals- Toyota, Nintendo, Canon, and I can give you a string of names like that. I don’t mean Japan, the domestic stocks, but I mean the multinationals. I think they have extremely good products. They’re very competitive, and they have the global marketplace as their opportunity. So no matter what happens to Japan, they will sell their wares in overseas markets. And they’re very undervalued. You get four to five percent dividend yields in a stock like Canon. I mean, this is unheard of in Japanese markets. They’ve corrected 75% from the peak while the U.S. market of the same period, about the last 25 years, is up 500%. Japan is down 75%. Enough is enough. All good things will come to an end. All bad things will come to an end.” – Rupal Bhansali

 

ROLLEY: DECENT YIELD: Emerging market corporate debt and actively managed domestic bank loan portfolios

“I think that the two fixed income ideas that probably will not break your heart over the next year would be emerging market corporate debt… which I’ve talked about and, to go domestically, bank loan portfolios but that are actively managed. Again, now you’re at the top of the capital structure, and you have a decent yield. We’re talking about a flow income of over four percent, so that’s… in a dangerous fixed income landscape, that’s a relatively safe place to be.” -David Rolley

[/wptabcontent] [wptabtitle]Transcript[/wptabtitle] [wptabcontent]WEALTHTRACK transcripts are now included in WEALTHTRACK Premium subscriptions. Sign in to access this weeks transcript.

You can also purchase and download the transcript separately safely and securely with your credit card or PayPal account. You will need the free Adobe Acrobat Reader (Mac/Win) or Preview (Mac) to view and print the transcript.
WEALTHTRACK transcripts are available individually for $4.99. Click here to purchase a copy.
[/wptabcontent] [wptabtitle]Purchase DVD[/wptabtitle] [wptabcontent]Please check back for availability.[/wptabcontent] [wptabtitle]Archive[/wptabtitle] [wptabcontent]There are no archive episodes for these/this guest(s).[/wptabcontent] [/wptabs]

 

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