Active investment management’s weekly magazine for fee-based advisors

The following posts are related to industry trends. Scroll down to see more articles.

The case for mechanical trading strategies

When it comes to implementing trading strategies, there are many compelling reasons to rely on computers rather than human discretion. Computers have been used in the investment business for more than 40 years. Initially, fund managers used computers...

Why goals-based investing makes sense

Financial advisors and investment managers use 21st-century tools to help clients achieve “real” investment success. Financial advisors who use fee-based managed accounts can more effectively help clients meet their investment objectives if they...

The volatility cycle

Are lower-risk portfolios with higher returns really too good to be true? More risk equals more return. Less risk equals less return. These are the commandments of the capital asset pricing model (CAPM), taught to first-year business students all around...

Possible cure for the summertime blues

June, July, and August will be upon us soon. Yep, the dreaded summer months that historically elicit the chant “sell in May and go away” each year. For most equity indexes, this advice has usually been true for more than 50 years. But, there are certain...

Are T-bonds repeating last year’s pattern?

So many investors believe that it is the Fed that determines interest rates, and thus bond prices. Or alternatively, that it is the mysterious force of inflation that drives interest rates. But the current evidence suggests it is the calendar that is...

The benefits of simplicity

The principles of Occam’s razor offer insights for investors, investment managers, and strategists “There never was a sounder logical maxim of scientific procedure than Ockham’s razor: Entia non sunt multiplicanda praeter necessitatem. That is to...

Now’s the time for value

John P. Reese is co-founder of Validea Capital Management. He is the manager of Validea Capital’s active equity ETF and separate accounts, and the subadvisor to the Consensus Funds in Canada. John is the author of “The Guru Investor: How to Beat the...

Why smart clients do dumb things

Highly intelligent people are often susceptible to making poor investing decisions—behavioral research offers some clues why History books are full of examples of faulty thinking by some of the most intelligent people of their time. News articles remind...

Attracting the right successor

Do philosophies matter more than numbers when finding the right successor? Years—perhaps even decades—before owners of independent advisory firms near retirement, they should be thinking of a succession plan. While advisors have many options—including...

Impact: The next stage of
 sustainable investing

Investing in solutions-oriented companies confronting global sustainability challenges. Investing is no longer about style boxes. In the period ahead, it will increasingly be about goals, and about solutions. It will not be just about equities versus...

Why outsource investment management?

Trust Advisor’s 2015 guide to America’s best TAMPs offers compelling reasons. Proactive Advisor Magazine recently took a look through the eyes of a successful Washington-based financial advisor at a key question for all independent advisors: “Separate?...

Wealth transfer equals opportunity

Advisors who can differentiate and add value via their investment management approach should reap the benefits of the upcoming ‘Greatest Transfer of Wealth’ Advisors who are not actively courting younger generations may be in for a rude awakening, as...

The millennial obsession

With the greatest wealth transfer of all time on the way, the profound interest in millennials’ financial attitudes is well-justified. You cannot pick up a business publication, tune into a financial news program, or glance at any news website without...