Best investment adviser Richard Losch's blog
Successful investing is a complicated process. From an intellectual standpoint, it does require some study of company’s history and financial statements but it is not rocket science, nor does it require a master’s degree from a big name business school.
Our year started nicely with our accounts making new highs in January on the basis of recent tax cuts and a strong economic news back ground. From there things deuterated, in spite of the fact that corporate earnings have remained strong. The reason for this is not hard to understand.
For Wall Street and a large segment of academia, The bible On investment management is a discipline called “Modern Portfolio Theory”or MPT for short. It is a set of rules first developed by academia in the 1960's and 1970's, and is based on the premise that broad diversification across many assets classes reduces portfolio risk, this school of thought defines risk by measuring volatility. With risk defined in this manner, Modern Portfolio Theory recommends that an investor approaching retirement should hold a portfolio heavily weighted to fixed income with equity investments widely diversified.
First Quarter Letter: Globalism, 1982 to 2000 Bull Market, Global Middle-Class Growth, Focus on the present.
Third Quarter Letter: Volatility Underlying a Calm Market, Middle Class Growth 2015-2030, Brookings Institution’s Estimates, LKQ Corporation.
With much chatter over the last six months anticipating an ambiguous or unfavorable Delaware Supreme Court ruling, CBI’s share price plummeted more than 60%. After years of contention, the hotly debated, anxiously awaited decision regarding the $2 billion Westinghouse lawsuit, the Court appears to hand CBI victory in dramatic fashion ...
The market responded emphatically, as well, with CBI’s share price jumping 50% in two days.
The trend to passive investing (investing in an index funds or ETFs based on an index such as the S&P 500) has accelerated in the last to few years to the point where we have to wonder how much longer this trend can go on. Last year, American investors plowed a record $504.8 billion into passive funds, while pulling $264 billion out of actively managed funds focusing on US companies.
Successful investing is about the long term. In the market, patience trumps genius. The best investment philosophy understands the cyclical nature of our economy, using these cycles rather than getting used by them.
The FED indicates it might raise interest rates three time in 2017 and Mr. Market gets upset. Eventually the market will decline (it always has), but when, and from what point?
The Global Plastics Summit was produced by IHS and presented in Chicago at the Radisson Blue from September 27 to September 30, 2016. After declining for the last thirty years, the domestic petrochemical industry is experiencing new life thanks to the shale revolution. This turn-around is in its early innings - low gas prices and long-term recovery of crude oil will put this country in a very strong competitive position relative to Asia and Europe in many basic chemicals.
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