EBI Tweets

November, 2018

Friday 30th - 13:51

One approach to market volatility- drip-feed money in gradually; stay diversified and most importantly, stay patient. No need to (over) react or try to time markets..... https://goo.gl/Q2kD14

Friday 30th - 11:52

More definitional problems for ESG investors- can/should one buy Gilts? Governments fund all sorts of things that many ethical investors may find tough to swallow, (Arms, Nuclear power etc.) https://goo.gl/qTbii7

Thursday 29th - 13:51

Vanguard on the sources of ETF liquidity. https://goo.gl/kaLCvj

Thursday 29th - 11:52

Unintended consequences- in the wake of the Fidelity zero -fee funds launch, Institutions are now asking fund managers- what about us? Zero management fees for them too? https://goo.gl/zHfSth

Wednesday 28th - 13:51

For all the market angst, the number of 1% daily moves in the S&P 500 in 2018 is almost EXACTLY average; this is what a NORMAL market looks like. https://goo.gl/LiAYUg

Wednesday 28th - 11:52

As part of an SL/Aberdeen fund merger, Investors are expected to pay for the costs incurred thereby (c.1%) even though they were not given the option to refuse. Time to vote with one's feet? https://goo.gl/XB5M8q

Tuesday 27th - 13:51

So far this year, there has been no place to hide for asset managers... https://goo.gl/Xq6fkz

Tuesday 27th - 11:52

The range of returns between the best and the worst performing UK funds appears to be getting wider; FTSE All Share +23.5% in the last years, implies a LOT of funds are going to disappoint investors. Time for a cull? https://goo.gl/RfJLaQ

Monday 26th - 13:51

Investor sentiment towards UK equities continues to sour; according to nearly a fifth of those surveyed. prices could fall ANOTHER 10%- are we getting close to a bearish consensus? https://goo.gl/z8gcai

Monday 26th - 11:52

This week's Blog looks at Bond "Yield to Call" and implications for the investor if no "Call" is forthcoming. https://goo.gl/vfAsGF

Sunday 25th - 12:51

It's not been a good year for anyone- or anything! https://goo.gl/2jwss6

Sunday 25th - 10:57

Vanguard has amassed £1 billion in AUM in the UK in just 18 months, eclipsing most of its rivals; worryingly for the competition, they call it "a good START". Younger investors represent 43% of the funds and they ARE the investors of tomorrow... https://goo.gl/GnTqDV

Saturday 24th - 12:51

The writer if this article blames Algorithms for recent market woes, but is he not talking about liquidity? If there were plenty of buyers, the declines would be much smaller; lower liquidity= more downside; sellers have to hit the bids that DO exist.... https://goo.gl/ArFhWj

Saturday 24th - 10:57

Since 2009, market performance has hidden from view the impact of falling fund management fees- now that markets are struggling, the tide is going out. Fund managers may be left beached... https://goo.gl/AL7UGP

Friday 23rd - 13:51

According to Moody's Passive fund's share of total AUM will reach 27% by 2025, in their "fast-case" scenario. That's an annualised growth of 1.36% p.a. Not the complete takeover of markets that Active Managers are fond of warning us about... https://goo.gl/fc3QZN

Friday 23rd - 11:52

This survey reveals the extent of Investor's conflicting attitudes to risk, returns costs etc. Apparently, they think they need 9.8% annual returns to reach their goals, but shy away from "risk". Someone is going to be REALLY disappointed... https://goo.gl/ajQQSA

Thursday 22nd - 13:51

For the $1 million portfolio retiree, even leaving the workforce at precisely the wrong time is not as disastrous as it might seem. But you DO need $1 million in the pot to weather the storm it seems... https://goo.gl/Pv6wML

Thursday 22nd - 11:52

There are 50,000 stocks tradeable on Global Exchanges but 3.7 MILLION Indices to track them- in the last year alone 438,000 NEW Indexes were created. Easy money for S&P, MSCI and FTSE. https://goo.gl/KvhS2E

Wednesday 21st - 13:51

Amid much FCA hand-wringing about DB transfers, an FOI request reveals that their OWN staff are rushing for the exits from their own Scheme. The value of transfers out has more than trebled in the last year alone! https://goo.gl/JKYoJM

Wednesday 21st - 11:52

How useful are Analysts' forecasts? Not much it seems, but they CAN make share prices move- so, despite the evidence, investors do still follow them. (Notice the continual over-optimism...) https://goo.gl/Hv3sgq

Tuesday 20th - 13:51

If you thought all Momentum strategies were created equal, you may be mistaken; there are two distinct types- Cross-Sectional (CS) and Time Series (TS) and they do things (slightly) differently- but are they distinct sources of momentum returns? https://goo.gl/ze2UKn

Tuesday 20th - 11:52

Last month's Tech collapse was led by selling from ...Indexers...ETF's...Passive investors...? No, it was mostly Hedge Funds. Another Active manager myth about forced Passive selling debunked. https://goo.gl/KFR2sK

Monday 19th - 13:51

US Investors appeared to be day-trading their pension funds last month. The only consequence was likely to make their situation worse, not better. Emotional investing never yields results, but people seem to need to learn the hard way... https://goo.gl/etY3uS

Monday 19th - 11:52

This week's Blog looks at the recent US Dollar strength and why its back in the spotlight. https://goo.gl/qGVoqy

Sunday 18th - 12:51

Performance fees and the "market for lemons". Will they make any difference in the final analysis? Will clients be prepared to pay them even when the fund manager LOSES them money? https://goo.gl/75Vkt3

Sunday 18th - 10:57

Overdrawn? According to this survey, 53% of investors currently in Drawdown have a real risk of running out of money during retirement. This risk is getting greater; solutions are many but none are especially palatable... https://goo.gl/r4XpVz

Saturday 17th - 12:51

Peak insouciance? While Euro politicians talk of "empires", the economy remains on life support; political dreams continue to override realities... https://goo.gl/5ouxRC, https://goo.gl/2a8wgy

Saturday 17th - 10:57

What are the potential routes to Brexit (or not)? Still plenty to play for... https://goo.gl/oPPLm9

Friday 16th - 13:51

A Swedish (former) Hedge Fund manager has seen the light! He's closed his underperforming fund and re-launched as a low cost Passive/Rules-based fund. But will he get any takers amongst HNW Individuals/trust funds? We shall see soon enough. https://goo.gl/U15ihf

Friday 16th - 11:52

MiFiD2 will force a new level of cost disclosure on asset managers. In a bull market, charges may be easier to "bury", but how will clients react to finding out that they have made less than their asset custodians? https://goo.gl/QKji14

Thursday 15th - 13:51

Many Pundits claim that one can have all the up-side of markets, with no downside- here are some of the reasons to "don't believe the hype"... https://goo.gl/KQ6Za8

Thursday 15th - 11:52

Equally weighting an Index gets round one potential source of risk, but in the process creates another. There is no silver bullet in Indexing- risk (sector, stock or market) is NEVER destroyed, merely transformed... https://goo.gl/uDh1pL

Wednesday 14th - 13:51

Aberdeen has "overhauled" their Asian Small Companies investment trust- cutting fees by 0.04% (to 0.96% p.a.). Looks like a marketing gimmick... https://goo.gl/cFUstW

Wednesday 14th - 11:52

In ONE MONTH, (October), the average UK DB scheme deficit rose by £69 billion as equities fell and bonds rose- it's no wonder that firms are getting out if this "business" as fast as they can... https://goo.gl/11FkDm

Tuesday 13th - 13:51

" Low Vol" stocks have beaten the market on occasions (with lower drawdowns too), but what if they are REALLY just a play on Interest rates? Things could change rapidly, especially given the popularity (and thus crowded nature) of the strategy. https://goo.gl/ZJjWHM

Tuesday 13th - 11:52

Confirming some suspicions, not ALL investors are willing to sacrifice returns for Ethical investment- those with the highest earnings were more likely to do so, but even they are choosy about which products they support. A bear market will test them... https://goo.gl/6m9a3k

Monday 12th - 13:51

Securities Lending has gone mainstream- $6 billion in revenue has been generated thereby, in the first 6 months of 2018- for a Buy and Hold Investor, it is a synthetic dividend (as long as the fund house doesn't keep it all!) https://goo.gl/QxN2mE

Monday 12th - 11:52

This week's Blog looks at the Citywire report on SJP- it's charges and returns do not inspire, but many still use them -why? https://goo.gl/ZaBPPC

Sunday 11th - 12:51

Doing nothing in investment terms is a vastly under-rated activity; though not buying or selling doesn't mean not thinking or watching, but that better opportunities have not (yet) arrived... https://goo.gl/ub4xRN

Sunday 11th - 10:57

Would Performance Fees improve the situation for Investors? It may not make much difference to returns, but at least the incentives for Principals and Agents would thus be aligned, but most managers are reluctant to put their incomes where their mouths are https://goo.gl/BXv1A4

Saturday 10th - 12:51

Closet-Indexing suits the (Active) fund management firm nicely- clients don't get spooked by large underperformance, so the management fees continue to roll in. It is by far the safest option for the vast majority of average fund managers. https://goo.gl/gXRaUn

Saturday 10th - 10:57

The boss of Aberdeen/SL avers that the active management industry has been "hit hard" by fee compression. Later on, the article mentions that profit margins are at 40%. A LONG way to go then... https://goo.gl/vUuCWT

Friday 9th - 13:51

Another Corporate fraud, which leads to another scandal and a rights issue to bail the firm out- fund managers pledge "to learn" the lessons- but will they? "Corporate Governance is high on our list"- where was it beforehand? https://goo.gl/3yYFFe

Friday 9th - 11:52

Will there be a panic-strewn stampede for the door by Index investors if markets fall? There might be, but that would be a new event- ALL past panics have been led by Active investors (and this October was no different)... https://goo.gl/oHigGb

Thursday 8th - 13:51

Whoops- Vanguard suffers a "tech outage" to the chagrin of its US clients- this is the second time in a month, this time due to a system "up-grade". https://goo.gl/Y5jB2X

Thursday 8th - 11:52

Still more bad news for Hedge funds- the Month-to-Date returns table is the wrong way up! https://goo.gl/93fgaA

Wednesday 7th - 13:51

Analysts MAY know a company inside out- but that doesn't mean they know WHEN to buy or sell. "I was never paid for the accuracy of my picks and neither was the research team I headed". Good job too... https://goo.gl/uhrkVP

Wednesday 7th - 11:52

Active Manager performance persistence continues to shrink as Alpha becomes a vanishingly rare commodity- why? It's the paradox of skill... https://goo.gl/2RtpPK

Tuesday 6th - 13:51

Not just retail investors (the so-called "dumb money"), but "smart money" also suffer from behavioural biases- and so make the same mistakes... https://goo.gl/XSyxh4

Tuesday 6th - 11:52

Now HL joins the bandwagon to cut manager fees- sob, sob, will it ever end? https://goo.gl/jM5tkZ

Monday 5th - 13:51

Active Managment needs to look inside rather than out to explain their fall from grace- there are just too many of them... https://goo.gl/6vF6nc

Monday 5th - 11:52

This week's Blog looks at the "Fed Put" and asks is it still operative or has it expired! https://goo.gl/k5bqDv

Sunday 4th - 12:51

Vanguard's CIO explains why ETFs are NOT the cause of market volatility. We know this, but Active Managers appear to be out of the loop... https://goo.gl/uQnFWc

Sunday 4th - 12:51

September's UK Fund flows show that nothing much has changed- another £ billion into Tracker funds by retail investors- if Active Managers squint very closely, they might just see a trend... https://goo.gl/KDA1Lb

Saturday 3rd - 12:51

Confusion in Active Land- "We have a solution that is designed to beat passives by construction and as such, it is designed to also beat actives over time.” Low Tracking Error, Fees and Transaction costs- sounds like an Index fund to me... https://goo.gl/CxArZf

Saturday 3rd - 10:57

The 500 largest asset managers collectively run $93.7 TRILLION as of the end of 2017. Here's the Top Ten... https://goo.gl/kPXi6P

Friday 2nd - 13:51

"Differing selection criteria mean you can have totally different performance even with a similar philosophy.”- which is why some "Value" funds do better than others. Look closely at the label- you may not be buying what you think... https://goo.gl/31gYCt

Friday 2nd - 11:52

Putting out Fiduciary Management deals to tender has led to a reduction of 20% in pension scheme fees- which tells us all we need to know about how overpriced they were previously... https://goo.gl/8yDrBR

Thursday 1st - 13:51

Given the choice between (fully) funding their Corporate pension schemes and paying out Dividends, Corporate Executives are going for the latter. Qui Bono? https://goo.gl/yq5uje

Thursday 1st - 11:52

The Stock Market's Law of Gravity- a.k.a. Mean Reversion explains why winning funds/shares etc. start to lose (and vice versa). https://goo.gl/p44baU

October, 2018

Wednesday 31st - 13:51

US State Pension fund returns are now being politicised (and weaponised) in elections; long-term focus is absent in a race to use hindsight to wrong-foot opponents. https://goo.gl/WsqFEB

Wednesday 31st - 11:52

If you do these 3 things, a market decline will not hurt you (as much). On the importance of NOT getting emotional about markets... https://goo.gl/HcVRC5

Tuesday 30th - 13:51

Bogle derides the "holy grail" on Active investing and sustainable outperformance and provides a more realistic alternative- small (initial) cost differences and the power of compounding. https://goo.gl/CQZPLx

Tuesday 30th - 11:52

A map of the World by market cap- a UK bias means an overweight to a market that represents just 6% of the world- do you feel lucky? https://goo.gl/995iGm

Monday 29th - 13:51

Savers on the hook for the bills as the UK Government changes the Inflation measure from RPI to CPI for Index-linked Gilts; guess which one of the two is lower...! https://goo.gl/cXy8nY

Monday 29th - 11:52

This week's Blog looks at Hedge Funds- how will they dig themselves out of the hole they are currently in? https://goo.gl/sXaSqg

Sunday 28th - 11:51

What is "Compound Interest" and how does it work? https://goo.gl/hNNcuo

Sunday 28th - 09:57

Investment planning has just got a little trickier, as latest life expectancy figures show a flatter trend- too early to be sure, but it may have major implications... https://goo.gl/2uTtzw

Saturday 27th - 12:51

So, ETF Investors have not sold out during the market rout of October- but it doesn't stop Active Managers repeating the same old guff about them. "active investors are the ones who prop up the market when it’s under stress". No, THEY are the sellers! https://goo.gl/N3CSXy

Saturday 27th - 12:51

The UK Government is examining ways to allow DC Pension schemes to invest in Venture Capital/Start-Ups etc. And lo, another pension scheme scandal is born! https://goo.gl/ukb4yc

Friday 26th - 13:51

The introduction of RDR has not led to fee cuts for fund managers- it merely reinforced an already established trend of lower charges for passive funds, while Actives trailed behind... https://goo.gl/n4PQKg

Friday 26th - 11:52

A few things to remember, when markets are a sea of red... https://goo.gl/1iRTpo

Thursday 25th - 13:51

In Chapter 5 of "Common Sense on Mutual Funds", Jack Bogle concentrates on his favourite subject -Index funds; the which, the why and the how. Well worth a reading. https://goo.gl/N5kLnd

Thursday 25th - 11:52

The recent October declines in perspective- even by investing (consistently) at market highs, as long as you stay in the market, it all works out fine. So ignore the doom-mongers... https://goo.gl/kqgXgS

Wednesday 24th - 13:51

"Pros" selling out of ETFs, while retail investors buy it all up- someone is going to be very wrong, very soon... https://goo.gl/MppgPv

Wednesday 24th - 11:52

Dollar cost averaging DOES work- just not all the time. In the 2000's it failed, but in the subsequent 10 years it rewarded investors handsomely- it depends mainly on when you start... https://goo.gl/NuiMjY

Tuesday 23rd - 13:51

Schwab is now "considering" a zero-fee mutual funs in response to Fidelity's offering- the price war for investor's money could get very serious... https://goo.gl/UXrNM8

Tuesday 23rd - 11:52

When the Dow fell 800 points last week, bullish sentiment collapsed and bearish views rocketed- confidence is widespread but exceptionally shallow; panicking out merely passes the opportunities to others (who are less emotional). https://goo.gl/vQya1J

Monday 22nd - 13:51

How high is "too high"? if you KNOW the market is going down, then sell- but do you? The perils of market timing... https://goo.gl/VRZo6b

Monday 22nd - 11:52

This week's Blog looks at what investment "Factors" are driving market returns and whether Value's performance will continue to disappoint. https://goo.gl/SLfgHJ

Sunday 21st - 12:51

More whistling past the(ir) graveyard, as fund managers now compare Passive buying to that during the Internet bubble- "the rush to buy passives indicated the market has peaked". We will check back in on that in 3 months or so... https://goo.gl/LnweWf

Sunday 21st - 10:57

The "regret" model of investment allocation- also known as diversification... https://goo.gl/tkS3gs

Saturday 20th - 12:51

All you ever needed (or wanted) to know about the EMH (Efficient Markets Hypothesis) in one article... https://goo.gl/o3bqMn

Saturday 20th - 10:57

Un-picking the myth of a "stock pickers " market. For every one that does so successfully, another HAS to lose... https://goo.gl/kpr9mk

Friday 19th - 13:51

How Deep is your Value? That depends on your fund's criteria- here is a run-down of some of the rules fund managers use to screen for value. https://goo.gl/6QNm73

Friday 19th - 11:52

The low fee mantra is being put out in Australia too- the model shows the effect of a 3% fund fee over thirty years; is it really THAT high in Oz? https://goo.gl/FjnnKB

Thursday 18th - 13:51

A good summary of the Bogle way to a successful investment strategy- it will serve the investor well over the long run. https://goo.gl/PptHPm

Thursday 18th - 11:52

"Dunn's law" and style purity- why active managers do better in some market "regimes" than others- but Morningstar's analysis concedes a "limited correlation among successful active managers, so success rates are partially driven by luck of the draw". https://goo.gl/Xegrp5

Wednesday 17th - 13:51

The "return gap" and what it costs investors- Index investors appear to DO less than active investors, as they exhibit "humility and patience", which means they trade less. https://goo.gl/Dz227z

Wednesday 17th - 11:52

Scottish Widows has withdrawn £30 billion in AUM from Aberdeen Asset Management- and in a flash, a large amount of the justification for the merger with SL disappears... https://goo.gl/3MtZXU

Tuesday 16th - 13:51

Is this why the markets have been so weak recently? Corporates can't buyback their shares ahead of earnings season and there is NO-ONE else... https://goo.gl/NPAxxm

Tuesday 16th - 11:52

Pension funds, facing low bond yields and high volatility in stocks are rushing into "alternative" investments, looking for a 7.5% return, with bond-like volatility to boot- maybe they should "think" again... https://goo.gl/4Z9Xmh

Monday 15th - 13:51

More bad news for GARS as one analyst estimates £12 billion outflows (and £1.8 billion in September alone) as investors "are growing tired of Multi-Asset funds"; 3-year performance numbers make marketing this fund ever more difficult..... https://goo.gl/6fqNUx

Monday 15th - 11:52

This week's Blog looks at the phenomenal growth of Ethical Investing- can it justify the hype? https://goo.gl/nU27yU

Sunday 14th - 12:51

Is the Wealth Management industry behaving like the tobacco companies of the past in their attitude to fee disclosure? Quite a claim, but you can see the point... https://goo.gl/3nCtNg

Sunday 14th - 10:57

So, Value and Small caps have lagged the market for a while now- but it's not unusual- even over a decade, there's a 10-20% chance of it occurring...we have to live with it. https://goo.gl/MGqtSW

Saturday 13th - 12:51

Another broken signal? The link between bond yields and share prices in the US appears to have vanished. https://goo.gl/pYpb1S

Saturday 13th - 10:57

According to this analysis, Hedge Funds DO generate Alpha from their Long positions, but the "economic rent" goes to the HF Manager and not the investor. https://goo.gl/KibC78

Friday 12th - 13:51

Trump criticises the "crazy" Fed for raising rates- is he looking for a scapegoat for market declines? https://goo.gl/ZJPCH2

Friday 12th - 11:52

Bad timing- just before the market opened yesterday, Vanguard experienced a "connectivity issue", which locked (some) investors out of their accounts. We have been talking about this recently... https://goo.gl/mNzzag, https://goo.gl/y3wMJ2

Thursday 11th - 13:51

1.7% of the funds in the IA sector have been in the top Quartile over the last 3 years according to a BMO fund survey- even this falls outside of the historic range of 2-5% of funds doing well. With THAT kind of record, there is little hope of success. https://goo.gl/gnpfcm

Thursday 11th - 11:52

The CEO of T.Rowe Price believe it is important that Active managers prove themselves in the next market downturn- well, the downturn may have already arrived... https://goo.gl/fjd6xs

Wednesday 10th - 13:51

The FCA is investigating 34 firms who have failed to openly declare their fee structures under MIFID 2 rules- they only came into effect on 3/1/18 though, so there's no hurry...(!) https://goo.gl/CCdnPv

Wednesday 10th - 11:52

Another Hedge Fund closes down after returning nothing since 2017, while the S&P 500 is +35% (including dividends), At least the returns are un-correlated I suppose... https://goo.gl/Kaxjao

Tuesday 9th - 13:51

2017 Fund flows show Actives under pressure across the board. Still no credible response from the Industry... https://goo.gl/aowxLM

Tuesday 9th - 11:52

When diversifying, it is the correlations not the numbers of assets held that determines if you're doing it right. Correlations change over time too, so you have to keep watching (and checking). https://goo.gl/krJWVq

Monday 8th - 13:51

US Asset management firms share prices are being hit hard by the market, as optimistic voices about the future run into the reality of "sector disruption". There are no easy solutions to the problem; what is needed is to cut fees/profit margins... https://goo.gl/fsZDA8

Monday 8th - 11:52

This week's Blog looks at the budget crisis in Italy; will market "financialisation" win out again? https://goo.gl/95V15Y

Sunday 7th - 12:51

Hedge funds are unanimous- the Bond bull market is over. But the weight of opinion here suggests that the opposite is likely to be true. Be careful of consensus- the more certain they are, the more probable it is that they are wrong... https://goo.gl/nMcFTL

Sunday 7th - 10:57

Is your portfolio REALLY diversified? Compare it against these 3 criteria and find out! https://goo.gl/cdzzsH

Saturday 6th - 12:51

After a mammoth $14 billion in global fines for malfeasance, Banks' compliance departments are taking no chances- Big Brother routinely oversees everyone and everything, leaving traders unable to even swear. Such is the "cost" of lost trust... https://goo.gl/348Hf8

Saturday 6th - 10:57

This chart shows sentiment extremes on the Dow have existed for 5 YEARS, with no meaningful market decline. 5 years is a long time to be bearish (and wrong)... https://goo.gl/21vaip

Friday 5th - 13:51

Following Buffett's Index strategy is (relatively) easy, but to benefit from compounding returns, one needs to have savings FIRST, (which is more difficult). But the sooner one starts, the better.... https://goo.gl/FccNB4

Friday 5th - 11:52

“Active is not dead, you just have to be good,” says one fund manager- which is where the problem for Active lies. Passive money may NOT return in a bear market as many seem to be hoping...https://goo.gl/2rvPjM

Thursday 4th - 13:51

Growth, Value, and Diversification- is the past about to repeat? https://goo.gl/BV2Th9

Thursday 4th - 11:52

Another report on SJP shows how they charge too much, provide too little and get away with it- where are the advisors etc. in all this? https://goo.gl/R6F22X

Wednesday 3rd - 13:51

Amazon announces a rise in the firm's minimum wage to $15 and then starts to lobby for its nationwide adoption- another "virtue-signaling " policy that once again highlights the nature of modern-day (crony) capitalism...? https://goo.gl/8rJL5j

Wednesday 3rd - 11:52

Now we go to Canada to see how Active Managers have once more trounced their benchmarks, as they again demonstrate their value to investors...oh, hold on, there appears to be a mistake... https://goo.gl/c32QUB

Tuesday 2nd - 13:51

A Morningstar study found that a majority of Active managers have beaten Passives in just 2 out of 49 fund categories in the last decade. One response- " “when [a fund] is very active, it is more likely to generate alpha,” is contradicted once again. https://goo.gl/SJ156d

Tuesday 2nd - 11:52

The 200-day moving average is failing to justify its reputation as a market timing tool, possibly because it is so widely followed. Popularity kills off the effectiveness of these sorts of indicators, (even if they ever did work)... https://goo.gl/VUGTC5

Monday 1st - 13:51

Warren Buffett once used a story to illustrate unnecessary intermediation in the investing industry. It’s the story of the Gotrocks family, which owns 100% of corporate America. https://goo.gl/XbKoaE

Monday 1st - 11:52

This week's Blog looks at the spate of Tech-related problems in the financial sector: are they are becoming an increasing feature of global life. https://goo.gl/y3wMJ2

September, 2018

Sunday 30th - 12:51

Waiting for a better entry point into the market MAY pay dividends- or you may be hanging on for a decade or more. How do you know when prices reach a "sale"? Nobody rings a bell at the bottom of the market... https://goo.gl/n8FwZu

Sunday 30th - 10:57

An SRI fund launched by Goldman Sachs and a Hedge fund billionaire appear to be engaging in some rather less than ethical practices- who could possibly have foreseen that ...? https://goo.gl/PJK6iG

Saturday 29th - 12:51

Last week saw a major shake-up in US Tech indices, but it isn't over- US Small Cap, European and Chinese Technology shares are next in line for upheaval. https://goo.gl/YcBkUp

Saturday 29th - 10:57

A newer, more complete study suggests that trading costs are higher than fund managers have assured us repeatedly- 24% of total investment fund costs are "clearly material"... https://goo.gl/m8FYRm

Friday 28th - 13:51

And they're back- Institutions, having forgotten 2007-09, are ploughing money into CLOs - the CLO market has grown by c.25% in the last two years. Apparently, these mortgage products are "uncorrelated" to stocks and bonds - are they really??? https://goo.gl/ZXQ6eN

Friday 28th - 11:52

Chinese stocks have suffered badly this year, but Global Index providers (FTSE Russell and MSCI) appear to be rallying round- increased weighting = increased buying flows... https://goo.gl/MLWZuh

Thursday 27th - 13:51

A graphical representation of why Diversification works... https://goo.gl/xBys7a

Thursday 27th - 11:52

Free "advice" is worth what you pay for it edition- billionaires are not helping YOU- more often than not they are selling something TO you... https://goo.gl/vuBdSe

Wednesday 26th - 13:51

A good explanation of why market timing is very hard- multiple decisions are required and they ALL need to be right to stay ahead of the game. Most of the battle is in your head and you'll probably lose.... https://goo.gl/gEbUcD

Wednesday 26th - 11:52

In response to criticism, Vanguard has changed the screening process for two of its SRI funds; as social mores change, won't this become an endless endeavour...? https://goo.gl/poEiyY

Tuesday 25th - 13:51

As per Morningstar data, Aussie investors have $414 billion invested in underperforming funds, paying average fees of 1.74% p.a. Are, by chance, these two facts in any way related? https://goo.gl/4HmDdo

Tuesday 25th - 11:52

Read it and weep for Hedge Funds- technology and employee costs are rising, cutting into their "wafer thin" margins; so they won't cut fees any further- until the year-end redemption surge, in which AUM craters of course... https://goo.gl/jUcLQQ

Monday 24th - 13:51

The 10-year growth of Index Investing in one chart- but does that REALLY look like the market is dominated by Passive? https://goo.gl/WWHhDA

Monday 24th - 11:52

This week's Blog examines the recent divergence between the US and every other world equity market; one of them is going to be badly wrong... https://goo.gl/fkLBd6

Sunday 23rd - 12:51

Despite the marketing blitz, ESG funds are not feeling the investor's warmth- maybe they could consider cutting the fees...? Wait a minute, someone's thought of that! https://goo.gl/EuonUY, https://goo.gl/q4b6UG

Sunday 23rd - 10:57

Warren Buffett and Jack Bogle agree- buy and hold is the best way to win in financial markets- who are we to disagree? https://goo.gl/xGzLJN

Saturday 22nd - 12:51

Tech problems seem to pervade the finance industry; it is trust that ultimately suffers... https://goo.gl/6P2L3m, https://goo.gl/nne3vP

Saturday 22nd - 10:57

According to this Private Banker, property enthusiasm remains undimmed amongst "professional landlords", who "typically have a preference for borrowing on an interest-only basis"; so it is leverage that they want, not necessarily property... https://goo.gl/h6jkzx

Friday 21st - 13:51

Value IS doing better than Growth in Emerging Markets at the moment- which begs the question does it only do so in Bear markets? The answer seems to depend on how relatively cheap Value and Growth are to begin with. https://goo.gl/qb8mXK

Friday 21st - 11:52

Who exactly IS the dumb money? Indexers continually outperform the "smart money" (aka Hedge Funds) and DON'T panic at the slightest twitch in markets. Stay the course and you will win out too... https://goo.gl/jDMj6u

Thursday 20th - 13:51

Jim Cramer posits one theory about why short sellers are losing big- but the main one is that there are too many of them... https://goo.gl/bxsuG3

Thursday 20th - 11:52

'The level of the fees is very high and the level will have to come down over the next 15 years,'- nice to see an Active manager taking issue with SJP's fees; but 15 years ??? https://goo.gl/dj6T8E

Wednesday 19th - 13:51

Amidst the avalanche of "lessons" from the 2007-09 crash, the only one that matters is that reacting to markets declines (by selling out) is a sure way to cut short one's profits. Stick to buy and hold. https://goo.gl/dK6PVr

Wednesday 19th - 11:52

The IMF (and the Bank of England and nearly every other institution that tries it) have a truly dreadful economic forecasting record- but we STILL listen to them. Why? They are never knowingly right! https://goo.gl/fnVTZF

Tuesday 18th - 13:51

Low Volatility and Low Beta stocks have done better than that predicted by CAPM, but it may not be as clear-cut as it looks at first sight. Other factors may be causing this phenomenon to occur- and popularity (crowding) may see its demise. https://goo.gl/T3aZwK

Tuesday 18th - 11:52

A downturn is bound to hit at some point- as long as you understand your time horizon and your risk tolerance, you should get through it- but you may need an advisor for the latter. https://goo.gl/WBRFYN

Monday 17th - 13:51

Is this why we are where we are? The origins of the Central Bank "put" and its consequences... https://goo.gl/w76Zsx

Monday 17th - 11:52

This week's Blog looks at the Venezuelan economic crisis and asks whether it could happen elsewhere- like in the UK...? https://goo.gl/SqTEvV

Sunday 16th - 12:51

Extreme market timing alert-Mark Carney doubles down on his post-Brexit "analysis", warning of a repeat of 2007-09 if a no-deal Brexit happens; but, given that he was100% wrong LAST time, why is this any more likely to be right? https://goo.gl/6sCQhG

Sunday 16th - 10:57

It's not only fees that are falling- minimum investment amounts are also dropping; one way to offset that for asset managers might be to look at Index data provider fees- are MSCI/FTSE Russell next for a kicking? https://goo.gl/B4eVZc

Saturday 15th - 12:51

The pros and cons of Target-date fund investing. They seem to be growing steadily in popularity, but as with all things investing, they are not suitable for everyone at all times- you need to be sure they are right for you... https://goo.gl/wzfmGC

Saturday 15th - 10:57

Financial Independence, Retire Early (FIRE) sounds an enticing prospect, but as many case studies show, having assets already helps considerably. There is NO easy route to an early departure from the "rat race". Slowly (and carefully) does it... https://goo.gl/FZzerj

Friday 14th - 13:51

10 years on from the Great Financial Crisis, what has changed- quite a lot actually, in ways many could not imagine (and many fund managers wish they could reverse). https://goo.gl/asdLQR

Friday 14th - 11:52

One Index provider believes Fidelity's zero-fee Index fund is not the end point but the start- negative fees to come next? https://goo.gl/Eod7gF

Thursday 13th - 13:51

This video highlights why, it a market with thousands of trades/traders, it is VERY unlikely that you know something that nobody else does. Markets are efficient. https://goo.gl/2QunzB

Thursday 13th - 11:52

Factor-based investing can be as uncomplicated as simple Index investing. Even with no value premium over the last 13 years, it has done as well as pure Indexing. https://goo.gl/TxLiCH

Wednesday 12th - 13:51

LOL- active manager salesman accuses passive proponents of "unashamedly grab(ing) media exposure to advance their own passive asset management businesses". Now I have read it all... https://goo.gl/Esi3h1

Wednesday 12th - 11:52

Although overall Hedge fund inflows are flat, but looking beneath the surface reveals a few more disturbing trends. Some have seen AUM fall so far, they are essentially reduced to managing only their own money... https://goo.gl/qLChiz

Tuesday 11th - 13:51

"Some" indeed may be tempted to sell after looking at this chart- but before you do, ask what this is ACTUALLY telling you about the future. Not much, whilst the costs of selling out too soon are all to real... https://goo.gl/whMLkJ

Tuesday 11th - 11:52

If you can't find a representative sample to prove your Active management case, try comparing apples to pineapples to make your point. https://goo.gl/vMC9X6

Monday 10th - 13:51

If Carillion's DB pension deficit had been accurately measured there would have been no dividend payouts to shareholders. Which might explain why they WEREN'T accounted for accurately... https://goo.gl/YRmhkz

Monday 10th - 11:52

Hedge funds are having (another) nightmare period- we look under the bonnet to see why its all gone pear-shaped this time. https://goo.gl/G8eRKY

Sunday 9th - 12:51

What causes a market crash and what to do about it. Spoiler alert- not much... https://goo.gl/G2DmnQ

Sunday 9th - 10:57

Keep It Simple Stupid (KISS)- plain old Index funds are still beating the "pros". You don't need an expert-just low cost and low turnover funds. https://goo.gl/pwrU8o

Saturday 8th - 12:51

Apparently, some IFAs are sticking with Absolute Return funds (despite the lack of absolute returns), because they believe clients need "protection"- have they not heard of short-dated bonds? https://goo.gl/ta8Y69

Saturday 8th - 10:57

Foxes in charge of the chicken coop edition- the Government "wants" to introduce a "pensions dashboard" for customers to keep an eye on their pensions, but have handed it over to the industry- so the chances of its occurrence has just plummeted. https://goo.gl/11N1vv

Friday 7th - 13:51

Larry Swedroe tries once again to dispel the myths regarding Index investing. But as the saying goes "if your livelihood depends on NOT understanding something, the odds are that you won't understand it". https://goo.gl/JXFGQE

Friday 7th - 11:52

JP Morgan Quant predicts a "Great Liquidity Crisis" at some point...we are (apparently) safe until the second half of 2019. But the solution is the same as what caused the current problems- more QE. https://goo.gl/GeCvkJ

Thursday 6th - 13:51

Last year's FCA report lays open the question of whether fund trustees are being misled by fund managers about performance/returns etc. Could this be a re-run of the PPI or Split Capital Trusts scandal? Will Trustees actually DO anything about it? https://goo.gl/Quwxi6

Thursday 6th - 11:52

This article focusses on how to pick successful/outperforming fund managers, but nowhere does it mention the role of luck- do YOU feel lucky? https://goo.gl/b7jck1

Wednesday 5th - 13:51

Buffett and Bogle don't invest in Hedge funds- the mystery is why anyone else would either. Who are they for? Certainly not for the investors... https://goo.gl/tMEkv6

Wednesday 5th - 11:52

Well, well, well- Fidelity cuts ts fees to zero for some Index funds and $1 billion flows in-who would have thunk it? https://goo.gl/JMRoJP

Tuesday 4th - 13:51

Believing in market efficiency, and not pundits' predictions is still the best route to investment success. https://goo.gl/eL1v2E

Tuesday 4th - 11:52

To attract investors, funds are increasingly "stretching" the definition of ESG- this means that they don't have to change their individual asset holdings. Look closely under the bonnet of each fund that claims to be ethical.... https://goo.gl/NHB8iR

Monday 3rd - 13:51

DC Plans also face the prospect of having to tell their investors how much (in trading costs) they are paying. Cue the usual wails of anguish as they are dragged into the 20th Century..... https://goo.gl/RBWmL6

Monday 3rd - 11:52

Vanguard's S&P 500 Index fund reaches 42 years old- still no sign of a mid-life crisis, except for its competitors in the Active world.... https://goo.gl/o8xjY9

Sunday 2nd - 12:51

The bog Pension funds have access to all the best information, the best fund managers and have a large influence on market players due to their size- so why do they fail so often? Larry Swedroe provides some answers.. https://goo.gl/W9xkbk

Sunday 2nd - 10:57

Return on Equity is a useful corporate comparison tool. How does the firm actually use their investors money? https://goo.gl/jdNhWr

Saturday 1st - 10:57

Foreign investors remain underexposed to China just based on the sheer size of the market, but indexers are helping to cram China into the world's investment portfolios https://goo.gl/vimWSc