What does CGM Focus fund’s legendary portfolio manager think of so called high-frequency, computer driven trading? Which unloved stocks is he investing in now. Capital Growth Management’s Ken Heebner answer those questions and more.
KEN HEEBNER: GREAT CONTRARIAN INVESTOR
ROBERT ARNOTT: A Better Mousetrap?
ROBERT ARNOTT ACTION POINT
Be Open To New Investment Ideas But Don’t Bet The Farm On Them -Fundamental Indexation – Weights stocks based on key fundamentals, not price. -Fundamentals can include revenues, earnings, cash flow, book value, dividends, etc.
ROBERT ARNOTT: A BETTER MOUSETRAP?
Is there such a thing as a better mouse trap? This week’s Financial Thought Leader guest has created an alternative to traditional index funds. Instead of being based on market capitalization or stock price, his Fundamental Index® approach measures fundamentals such as sales, profits, and dividends to determine the weight securities have in his indexes. Research Affiliates Chairman and CEO Robert Arnott explains why fundamentals can make a big difference.
TAX TIPS THAT MAY $AVE YOU MONEY
When you go to your financial adviser, how much time do you spend talking about taxes? Probably not enough. Incomes taxes, capital gains taxes, estate taxes . . . you know what they are. For these financial advisers, each of whom specializes in women clients, talking about taxes is a priority. You should hear what they’ve got to say.
CLEMENTS & ZWEIG ACTION POINT
Treat Your Social Security As A Bond Holding For instance $21,000 of Social Security income a year is equal to holding a $700,000 portfolio of 10 Year Treasury bonds yielding 3 percent.