Speaking of the pathetic state of journalism, you might think about (but largely avoid reading) the current U.S. News article, "This book obliterates active management." The book is another of Larry Swedroe's shots at active management; smart guy, he's probably 99% right.
My beef? The article is written by a member of Swedroe's staff: "[t]he book was written by my colleague Larry Swedroe." The author is "director of investor advocacy for the BAM ALLIANCE and a wealth advisor for Buckingham." Which is to say, he's a marketer. He "travels the country educating advisors and clients alike about changing their lives for the better." Swedroe, on the other hand, is one of the firm's principals, a board member and member of the executive team.
Why isn't this "article" presented as what it is: an ad for Swedroe's 13th book (what is it that he hadn't covered in the prior 12 that required an entire new book?) by a guy with a vested interest in it.
David

Could not agree more. A marketeer in a class of his own. I think he is up to 15 or 16 books now.

1,000 points ain't what it used to be.

FYI: Retail names among the strongest of the day
U.S. stocks were little changed on Tuesday as major indexes pulled back from their latest in a string of all-time highs, on a day when both the Dow and S&P 500 topped psychological milestones.
Gains on the day were slight but broad, with only three of the S&P 500’s primary 11 sectors trading lower early. Consumer-discretionary names were among the biggest outperformers, lifted by retailers.
The Dow Jones Industrial Average DJIA, +0.45% rose 44 points, or 0.2%, to 19,002. The blue-chip index touched 19,014.73 early in the session, its first time above 19,000.
Regards,
Ted
Bloomberg:
https://www.bloomberg.com/news/articles/2016-11-21/yen-rises-nikkei-futures-erase-gain-after-quake-oil-holds-gain
Reuters:
http://www.reuters.com/article/us-usa-stocks-idUSKBN13H19R
MarketWatch:
http://www.marketwatch.com/story/us-stocks-on-track-to-knock-out-fresh-record-highs-2016-11-22/print
USA Today:
http://www.usatoday.com/story/money/markets/2016/11/22/stocks-dow-tuesday/94268404/
IBD:
http://www.investors.com/market-trend/stock-market-today/stocks-turn-mixed-after-dow-crosses-19000-retailers-shine/
CNBC:
http://www.cnbc.com/2016/11/22/if-the-dow-closes-above-19000-we-can-expect-more-gains-to-come.html
AP:
http://hosted.ap.org/dynamic/stories/F/FINANCIAL_MARKETS?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT
WSJ Markets At A Glance:
http://markets.wsj.com/us
Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-tracker
Current Futures: Positive
http://finviz.com/futures.ashx

Abigail Johnson on Forbes Lists
#29 Forbes 400 (2016)
#31 in 2015
#16 Power Women (2016)
The Richest Person In Every State (2016)
#65 Billionaires (2016)
#29 in United States
2016 Forbes 400 Net Worth
$13.2 Billion
President-CEO, Fidelity Investments
Age 54
Source Of Wealth money management
Self-Made Score 3
Residence Milton, MA
Citizenship United States
Marital Status Married
Children 2
Education Bachelor of Arts / Science, Hobart and William Smith; Master of Business Administration, Harvard Business School

http://www.forbes.com/profile/abigail-johnson/?list=forbes-400
#76 Charles Schwab
http://www.forbes.com/profile/charles-schwab/?list=forbes-400
#156 Donald Trump
http://www.forbes.com/profile/donald-trump/?list=forbes-400

FYI: Abigail Johnson will succeed her father as chairman of Fidelity Investments early next month, solidifying her control of the Boston money manager.
The move caps Johnson’s ascent to the top of a firm founded by her grandfather and led for decades by her father. She was named CEO in 2014.
Fidelity, known for its roots in stockpicking and as a home to the likes of star managers such as Peter Lynch and William Dannoff, is one of the largest mutual-fund firms confronting broad industry transformations. Investors are pouring growing sums into market-mimicking funds as fund managers continue to undercut each other on fees and new regulation is poised to redefine some longstanding distribution practices.
Regards,
Ted
http://www.marketwatch.com/story/fidelity-ceo-abigail-johnson-to-become-chairman-as-well-2016-11-21/print

https://www.sec.gov/Archives/edgar/data/890540/000113542816001868/frost-497.txt
497
1
frost-497.txt
THE ADVISORS' INNER CIRCLE FUND II (THE "TRUST")
FROST KEMPNER TREASURY AND INCOME FUND (THE "FUND")
SUPPLEMENT DATED NOVEMBER 21, 2016
TO THE INSTITUTIONAL CLASS SHARES PROSPECTUS AND THE INVESTOR CLASS SHARES
PROSPECTUS, EACH DATED NOVEMBER 28, 2015 (THE "PROSPECTUSES") AND THE STATEMENT
OF ADDITIONAL INFORMATION, DATED NOVEMBER 28, 2015 (THE "SAI")
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED
IN THE PROSPECTUSES AND SAI, AND SHOULD BE READ IN CONJUNCTION WITH THE
PROSPECTUSES AND SAI.
The Board of Trustees of the Trust, at the recommendation of Frost Investment
Advisors, LLC (the "Adviser"), the investment adviser of the Fund, has approved
a plan of liquidation providing for the liquidation of the Fund's assets and the
distribution of the net proceeds PRO RATA to the Fund's shareholders. In
connection therewith, the Fund will be closed to new investments effective
immediately. The Fund is expected to cease operations and liquidate on or about
December 30, 2016 (the "Liquidation Date").
Prior to the Liquidation Date, shareholders may redeem (sell) their shares in
the manner described in the "How to Redeem Fund Shares" section of the
Prospectuses. For those Fund shareholders that do not redeem (sell) their shares
prior to the Liquidation Date, the Fund will distribute to each such
shareholder, on or promptly after the Liquidation Date, a liquidating cash
distribution equal in value to the shareholder's interest in the net assets of
the Fund as of the Liquidation Date.
The liquidation distribution amount will include any accrued income and capital
gains, will be treated as a payment in exchange for shares and will generally be
a taxable event. You should consult your personal tax advisor concerning your
particular tax situation. Shareholders remaining in the Fund on the Liquidation
Date will not be charged any transaction fees by the Fund. However, the net
asset value of the Fund on the Liquidation Date will reflect the costs of
liquidating the Fund.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE
FIA-SK-039-0100

FYI: he trend towards fee-based practices is pushing low-priced fund groups to the top of the list of funds most popular with advisers. While consistency of fund performance and having a distinctive company investment philosophy remain critical, fees and expenses offer the greatest potential to enhance loyalty among users who are predominantly fee-based, says Market Strategies International. Here’s the list of the 10 companies most popular with financial advisers.
Regards,
Ted
http://www.investmentnews.com/gallery/20161121/FREE/112109999/PH
1. Franklin Templeton:
http://www.investmentnews.com/gallery/20161121/FREE/112109999/PH/10-most-popular-fund-companies-
2. Legg Mason:
http://www.investmentnews.com/gallery/20161121/FREE/112109999/PH/10-most-popular-fund-companies-with-financial-advisers&Params=Itemnr=10
3. BlackRock:
http://www.investmentnews.com/gallery/20161121/FREE/112109999/PH/10-most-popular-fund-companies-with-financial-advisers&Params=Itemnr=9
4. MFS:
http://www.investmentnews.com/gallery/20161121/FREE/112109999/PH/10-most-popular-fund-companies-with-financial-advisers&Params=Itemnr=8
5. J.P. Morgan:
http://www.investmentnews.com/gallery/20161121/FREE/112109999/PH/10-most-popular-fund-companies-with-financial-advisers&Params=Itemnr=7
6. American Funds:
http://www.investmentnews.com/gallery/20161121/FREE/112109999/PH/10-most-popular-fund-companies-with-financial-advisers&Params=Itemnr=6
7. DoubleLine:
http://www.investmentnews.com/gallery/20161121/FREE/112109999/PH/10-most-popular-fund-companies-with-financial-advisers&Params=Itemnr=5
8. T. Rowe Price:
http://www.investmentnews.com/gallery/20161121/FREE/112109999/PH/10-most-popular-fund-companies-with-financial-advisers&Params=Itemnr=4
9. Vanguard:
http://www.investmentnews.com/gallery/20161121/FREE/112109999/PH/10-most-popular-fund-companies-with-financial-advisers&Params=Itemnr=3
10. Dimensional Fund Advisors:
http://www.investmentnews.com/gallery/20161121/FREE/112109999/PH/10-most-popular-fund-companies-with-financial-advisers&Params=Itemnr=2

@Crash said "And rising rates are hurting REIT funds. How long can we expect to wait before it all levels-off?"
Real Estate Review:Nov. 20, 2016 3:21 PM ET Hoya Capital Real Estate
REIT valuations in 2016 have been driven almost entirely by movements in US interest rates, but this pattern has diverged since the Trump election. REITs have held up surprisingly well in the face of sharply higher interest rates.

Residential REITs struggled this week amid stronger-than-expected construction data and comments from President Elect Trump on a possible deportation of 2-3 million people. While we don't expect mass deportations, we do expect a slowdown in net migration into the United States, which would be a drag on apartment and self storage demand. Public Storage (NYSE:PSA) and Apartment Investment Management (NYSE:AIV) fell 5% each.
The re-pricing continued this week, as investors in residential REITs had to weight the possibility of sharp declines in net migrations into the United States as a result of stricter immigration policies.
Rent inflation, though, remains strong, a signal of continued tightness in the multifamily rental market. Rent inflation rose 0.4% month over month and is up 3.5% year over year.
30-Year Mortgage rates, which tend to track movements in medium and long term Treasury bonds, surged higher this week and are at or above 4% for the first time since late 2015. All else equal, higher mortgage rates puts downward pressure on house prices and home sales, as it pushes marginal buyers out of the market. This may be a positive for apartment REITs. We won't know the effects on home prices, new home sales, or new construction for several weeks or months.
Labor markets have shown signs of continued strength. Initial jobless claims data was better than expected. Data this week showed the lowest jobless claims since 1973.
Retail sales showed continued strength in October. Retail sales excluding auto gained a strong 0.8% in October, following an upwardly revised 0.7% in September. Retail sales have risen in seven of the past nine months and are now up 4% year over year.
Digging deeper into the data, we see strength in grocery stores, clothing stores, miscellaneous retailers, and sporting goods stores. Online retail (non-store retailers) continues to show strength. Department stores continue to struggle, but their pace of decline has moderated.
http://seekingalpha.com/article/4024976-real-estate-review-reits-stabilize-construction-strong-yields-mortgage-rates-surge
Also
Real Estate Implications Of Trump's Win
Nov. 17, 2016 3:55 PM ET|4 comments | About: iShares U.S. Real Estate Etf (IYR), Includes: AMZN, AVB, EQR, GGP, PAC, PLD, PSA, SPG, VNQ
Hoya Capital Real Estate Hoya Capital Real Estate
http://seekingalpha.com/article/4024392-reits-picked-winners-2016-real-estate-implications-trumps-win
Bond Rally and Rout to Nowhere
Posted on November 21, 2016 by David Ott Acropolis Investment Management,
...although 2016 feels like a year where anything can happen – bond returns are almost exactly what you would have expected back in January.
Despite all of the action, not much has really changed, which is why we try not to focus too much on the short-term movements.

http://acrinv.com/bond-rally-rout-nowhere/

Boy, if given the chance over 40 years ago to go with SS or use that money to fund my own retirement, I would have picked the latter in a heartbeat. Yea some don't know how to save or invest but don't include those who want to do better, which is a big chunk of society.
I have always liked the idea that out of the 12.5% tax for SS, let me invest 10%. The rest goes into a pool fund for those who are physically disabled or unable to work. We do have a compassionate streak among us.

nymag.com/daily/intelligencer/2016/11/paul-ryan-says-medicare-privatization-is-on.html
foxnews.com/politics/2016/11/12/trump-advisers-back-deregulation-privatized-social-security.html
mobile.nytimes.com/2016/11/18/opinion/the-medicare-killers.html
Also, Reagan was the first to tax Social Security benefits and significantly raised payroll taxes on the working class, effectively reducing their income and benefits. The goal of the party has largely been to dismantle these social programs, by reducing benefits, raising the age you need to be to receive benefits and privatizing them.

@edmond Most members of the "green crowd" oppose free trade deals just like Trump ostensibly does: http://ontheissues.org/Celeb/Green_Party_Free_Trade.htm
In fact it is the "Republican elite" that generally supports free trade and will seek to reign Trump in if he suggests severe tarrifs. It will be interesting to see if Trump follows through on his pandering to the working class because it will be bad for his businesses that sell foreign made goods and terrible for the stock market in general. Most multinational companies will crash the day any serious tarrifs pass.
https://greenparty.org/Platform.php
From the Green Party Platform:
"Fair Trade: Withdraw from the World Trade Organization, NAFTA, and all other corporate-managed trade agreements that are driving down labor and environmental conditions globally. Establish an internationalist social tariff system that equalizes trade by accounting for the differences among countries in wages, social benefits, environmental conditions, and political rights. Tariff revenues to a democratic, international fund for ecological production and democratic development in poor countries in order to level up social and environmental conditions to a high common standard. "
Any here's what the Sierra Club, The NRDC, Greenpeace and other "green elite" organizations think of the TPP. They all oppose it: http://sierraclub.org/compass/2015/10/more-dozen-environmental-organizations-warn-trans-pacific-partnership-risks

FYI: Donald Trump’s move into the White House could drive even more dollars into the already hot field of sustainable investing.
Wait, what? Trump has called climate change a hoax, said he’d like to pull out of the Paris Agreement on global warming and suggested rolling back the carbon-cutting Clean Power Plan. Isn’t his victory a sign that Americans don’t believe in climate change?
Regards,
Ted
http://www.denverpost.com/2016/11/20/of-mutual-interest-the-trump-effect-on-environmental-investing-positive/

Unfortunately, ARTWX has only $68 million AUM as of October 31, 2016 as the fund commenced on June 25, 2013. Hopefully, ARTJX will remain around for some time.
I am sure that GP's fund didn't help ARTWX either.

Hi Hank,
Not being too familiar with the hot money issue doesn't dissuade me from making a guesstimate of its likely impact on investor's returns. My arrogance is such that I'll invent a method to estimate its impact at least in a possible magnitude sense.
Expected long-term compound geometric annual rate of return is calculated by taking the expected average annual return and subtracting its volatility drag. Volititity drag is the square of standard deviation. As you know, many folks interpret standard deviation as a measure of risk.
In my model, hot money must increase standard deviation without substantially changing basic expected returns. If that is true, we can use the relationship of Expected Annual Return equals Average Annual Return minus one-half Variance to examine the potential impact of hot money on Expected Annual Returns.
Here is an example (be free to use your own set of test numbers). If you anticipate your portfolio will deliver a 7% average annual return with a standard deviation of 15%, the normal expected annual return is 5.88%. Using the proposed hot money model, the average annual return remains at the 7% level, but standard deviation might increase by say 30% to a 19.5% level. In that case, expected annual return is reduced to 5.10%.
So the proposed hot money impact on market volatility significantly attenuates expected returns. Toss in your own numbers and do a few cases to explore the sensitivities of the relationship.
Note that as average annual returns decrease, the impact of hot money has a larger influence. If average annual return is likely to be in the 4% range with still a 15% standard deviation, the nominal expected return is 2.88% and the hot money expected return is 2.10%. Hot money does proportionately more damage as market rewards decrease.
I'm sure this simplistic analysis misses some pertinent considerations, but it might get an investor into the ballpark in terms of weighing the influence of hot money on potential returns.
Hank, I think I'll stop at this juncture; otherwise I fear some folks will start talking.
Best Wishes.

Here is the news release about the reopening and the liquidation of the Global Small Cap fund (see Ted's post about the closure of the Global Small Cap Fund above/below):
https://www.artisanpartners.com/content/dam/documents/press-releases/mf/MCV-Reopen-GBLSC-Liquidation-18-Nov-16-vR.pdf

https://www.sec.gov/Archives/edgar/data/935015/000119312516772418/d291212d497.htm
497 1 d291212d497.htm ARTISAN PARTNERS FUNDS, INC.
Filed pursuant to Rule 497(e)
File Nos. 033-88316 and 811-08932
ARTISAN PARTNERS FUNDS, INC.
ARTISAN MID CAP VALUE FUND
SUPPLEMENT DATED NOVEMBER 18, 2016
TO THE FUND’S PROSPECTUS
CURRENT AS OF THE DATE HEREOF
Effective November 21, 2016, Artisan Mid Cap Value Fund will open to new investors. All references to the closure of Artisan Mid Cap Value Fund in Artisan Partners Funds’ prospectus are removed.
Please Retain This Supplement for Future Reference

There's so much uncertainty since the election. I don't think any of us have a clue where things are heading. If Trump gets the kind of infrastructure stimulus package from Congress which many seem to think he intends, along with higher borrowing and tax cuts, that's bearish for bonds and bullish for just about everything else - at least for a year or two until the rising debt shocks us back into austerity. But he has Congress to deal with. Many commodities, notably copper, have turned up in recent days anticipating some type of stimulus. Big military buildups, as Trump appears to desire, also bolster an economy short term - especially the Northrups, Lockheeds, General Dynamics and Boeings of the world.
On the other hand, the first year of a new President's term usually isn't that good for equities. Both the Pres and FOMC like to get the the tough love out of the way early. The Pres., especially, wants things improving as the next election nears.
Bonds to some extent self-correct. As rates rise there's more income in the pockets of investors helping mitigate declining values. At some point bonds again begin to look attractive to new investors. I'd think, however, that going long on bonds (durations over 10 years) would have been foolish in recent years. It may take decades for those investors to break even. And yes - there were plenty of warnings here and elsewhere about the dangers of longer term bonds when the 10 year was yielding 2% or less.
---
I haven't made any changes to portfolio in recent months - except that a few weeks ago I shifted some $$ intended for near-term household expenses from Price's money market fund to their ultra-short bond fund. The new govt. money market regs caused money market fund yields to suffer even more, but pushed up rates on ultra-short high grade corporates. Even with the sharp sell off, TRBUX held at $5.01 - which surprised me. Since the election I've lost a half-percent on my investments. Balanced and energy/commodity related funds drifted higher. But my meager exposure to bonds - especially the international variety - got hammered. So it goes.

What do you anticipate from there? How much higher can the rates go in 2017? What do you see as the "normalized" rate or "leveling" off rate?

Where from there - you will have to watch the variables.
My gut tells me the we will find a new quieter range of rates but for how long??????

Pretty much any of the American Century funds that are not index will get a boost. This is not the Ultra of years ago although it's still a decent fund. Any growth fund in any fund company will have tech stocks at the top of their top ten holdings list.
Disclosure: I held Ultra in the late 80's to around 1993. 1991 was an exceptional year.

FYI: Artisan Partners Asset Management - board of directors of Artisan Partners Funds, Inc has approved a plan to liquidate Artisan Global Small Cap Fund.
Regards,
Ted
http://www.reuters.com/article/idUSASC09JSZ
Artisan Press Release:
https://www.artisanpartners.com/content/dam/documents/press-releases/mf/MCV-Reopen-GBLSC-Liquidation-18-Nov-16-vR.pdf