Tag Archives: PIMCO

Why Bond Yields Scare Me More Than Friday the 13th

Stock investors generally don’t have much to fear on Friday the 13th. Historically, Friday the 13th is a relatively calm day for stocks. Jason Zweig, who writes The Wall Street Journal’s Intelligent Investor column, says it’s usually a good day for investors and says superstition about trading on this supposedly unlucky day is one of the market’s “dumbest myths.”

Bond yields, however, are seriously worrying to Geoff Considine.  Here’s why. Continue reading

Did Tail Insurance Turn South in Recent Market Volatility?

Investment News recently ran a story called “Black Swan Funds Duck Market Mayhem.” Since the bear market of 2008 the idea of managing the potential for extreme market downturns has become a focus for many portfolio managers—and finding the best method to do that has been a challenge.  Continue reading

Municipal Bonds: Buying Opportunity?

State and cities are in a world of pain at the moment as they face another year of gut wrenching (and politically unpopular) service cutbacks and layoffs. Once again they must balance their budgets in the face of possible declines in Federal funds to states and drooping real estate tax revenue. That cold reality combined with the prediction of influential analyst Meredith Whitney that numerous municipal bankruptcies could be coming down the pike,  fueled a three-month long drop in municipal bonds. In the last two months, $25 billion has also been withdrawn from mutual bond funds.

Could this be a buying opportunity? Continue reading

Meir Statman and Bill Gross Speak on the Future of Investing

I came across this webcast from Merrill Lynch this morning.  This panel discussion includes Meir Statman, a professor at Santa Clara University, and author of What Investors Really Want about how we behave as investors and the real-world implications of behavioral finance, and Bill Gross, a founder of  PIMCO, the Newport Beach-California-based investing giant, and perhaps the leading expert on government and corporate debt investing. While there is nothing terribly surprising here if you are familiar with these guys, it’s a useful discussion and both Statman and Gross are articulate presenters. Continue reading

Commodities in Asset Allocation

A recent Wall Street Journal article discusses a growing movement among Target Date Funds (TDFs) to include an allocation to commodities.  This article is notable not least because it gives a sense that the methods applied to retail investing lag well behind institutional thinking. Continue reading