Tuesday , 24 October 2017


Asset Allocation

Stocks: The Place to be During Coming Inflation

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Over the longer term, some of history's top strategists actually say that inflation is a big reason to buy stocks – not to avoid them. Foremost among them is Warren Buffett. His inflation research goes way back. In 1977 – just before the U.S. was about to enter into one of the worst inflationary climates in history – in a column for Fortune magazine he said, “stocks are probably still the best of all the poor alternatives in an era of inflation – at least they are if you buy in at appropriate prices.” Words: 664

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Start Looking For A “Greater Fool” – Now! Here’s Why

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As investors, our job now is to be selling off our investments to those “greater fools” that are willing to overpay for an asset...Currently, at 3 standard deviations above the 60-day moving average, the “Donald Trump Is Great” rally is likely complete as opposite extremes have now been reached.

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Perhaps the ‘Dow Jones’ Should Now Be Called the ‘Goldman Sachs’ Industrial Average – Here’s Why

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US stocks have had quite a rally in the last month, but in the large-cap space, the clear leader has been the Dow Jones Industrial Average (DJIA). While much of the strength in the DJIA has been chalked up to the index being full of old-line industrial stocks that stand to benefit from a Trump victory, practically all of the outperformance can be summed up in two words - Goldman Sachs

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The Ins & Outs Of Having TIPS And/Or TIPS ETFs In Your Portfolio

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Inflation expectations have been on the rise since before the U.S. election, but markets are now more convinced of higher inflation to come due to President-elect Trump’s talk of fiscal stimulus and tax cuts. Measured by break-evens in the Treasury Inflation Protected Securities (TIPS) market, inflation expectations for the next 10 years rose to 1.93%, the highest level since the summer of 2015. The long decline in inflation seems to be turning, as the CPI climbed 1.6% year-over-year, the most in two years. This changing environment has piqued investor interest in TIPS, and in turn, TIPS ETFs.

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What Should Investors Do: Flock to Pro-growth Equities, Participate in a New Gold Rush or Stick to the Fundamentals of Value Investing?

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What does the average investor do when someone with the temperament of Donald Trump gets into power? Do they flock to pro-growth equities, participate in a gold rush or stick to the fundamentals of value investing? Fund flow data will not show us the answer to this question for at least a few months yet, but we can begin to understand the bigger picture - especially as it relates to gold, fixed income and equities - in the article below.

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