October 1, 2022

By David Snowball

Dear friends,

Our hearts go out to people around the world whose lives are being wracked by forces beyond their control, whether that’s the madness of dictators or the ravages spawned by the world’s increasingly unstable climate. Those folks represent needs far beyond the annoyance caused by our collective loss of $9 trillion in the stock market’s ongoing revaluation.

Those of us only indirectly affected by such tragedies have three imperatives:

  1. Help those in need now. No, you can’t fix everything but you can do some good. Charity Navigator offers credible guidance whether you’re concerned about the brave souls in Ukraine or the stunned survivors of Hurricane Ian.
  2. Turn our energy, resolve, and creativity to preventing their reoccurrence.
  3. Celebrate the daily beauty and joy of life. Really. Notice the good, not just the bad. That will leave you both more resilient and more able to manage adversity when it presents itself.

Continue reading →

Do not be afraid: Advice to investors and other friends

By David Snowball

An impending civil war in the US. A planet on fire. The worst drought in 1500 years. The prospect of Putin using nuclear wars in Europe. A market decline that might be accelerating rather than slowing. Inflation at 40-year highs. Crazy people storming the Capitol. Voter restrictions. Politicians increasingly willing to assert control over women’s lives. Continue reading →

Rebalancing, Portfolio Restructuring, Tax Loss Harvesting

By Devesh Shah

Down years in the financial markets are a heavy burden on asset holders. (We presume you’re noticed.) Holding assets through down years is the price we pay for earning long-term risk premia embedded in assets. Years like this are particularly challenging because the current downswing feels so very abnormal: it’s a correction in the financial markets (normal but painful) in which both investment grade bonds and speculative tech stocks are falling sharply and simultaneously (utterly abnormal and still painful), and the trajectory of the decline Continue reading →

Shining the Light into Black Box Funds

By Charles Lynn Bolin

Source: PublicDomainPictures.net

A reader on the Mutual Fund Observer Discussion Board asked “how do you feel about putting monies into funds that have a somewhat ‘black box’ dynamic to them…yes, they explain their positions but sometimes I wonder, how safe of an investment are some of these funds?”

For those not familiar with black box investing, Investopedia explains: “a black box is a device, system, or object which produces useful Continue reading →

fountain pen writing a note

Briefly Noted

By TheShadow

Not a major surprise, but there are a load of active ETFs in the pipeline.  Fidelity has launched Fidelity Tactical Bond ETF. John Hancock will have John Hancock International High Dividend, and Hartford is launched Hartford Sustainable Income, managed by a team from Wellington. iShares is launched an active U.S. Consumer Focused ETF, but such funds have always felt a bit gimmicky to us. Finally, Neuberger Berman Commodity Strategy Fund is becoming an ETF on or about October 21, 2022.

Akre ups international flexibility. Effective November 28, 2022, Continue reading →