Asset Allocation

Merrill conducts a periodic survey of US institutional money managers. One area the survey focuses on is a set of questions on the so-called "tail risks", the less probable but potentially devastating events that negatively impact financial asset valuations. Here are the survey results from September and October of this year. Words: 535

As the fiscal cliff is nearing with the end of 2012 in sight and total public debt approaching the debt limit of $16.4 trillion, investors need to seriously start worrying about the U.S. bond market. [Below are 5 trends that support that view.] Words: 599

Could U.S. Treasuries be the best performing asset class of the next one-two years? It's quite possible. I am sure this article is bound to stir up controversy, but I'd like to spend some time analyzing several drivers that could buoy bond prices in the coming months. Words: 1053

Transition Therapeutics Inc. (TSX:TTH/NASDAQ:TTHI) is in the process of developing an oral drug that has the potential to address both neuropsychiatric changes and cognitive declines associated with Alzheimer's Disease (AD) and stabilize the mood swings of those suffering from Bipolar Disorder (BPD) as well as a drug that plays a role in regulating obesity in those genetically predisposed to Type 2 Diabetes (DM11). With millions of people suffering from such health issues, and costing society billions of dollars in the treatment of same, such new drugs would be most welcome on all fronts. We wish Transition Therapeutics success in their endeavours and hope the development of each of their products come to fruition in rapid fashion. Here is their story to help you decide if its stock should be in your portfolio. Words: 1050

The U.S. may end up having the highest dividend tax rates among the G-10 countries next year [if] the current rates are not extended. [In fact, the rates will double for most and triple for some along with significant increases in capital gains taxes. Below is a comparison of how the current dividend tax rate compares with the other G-10 countries and how it would compare in 2013 should the reduced rate not be extended.] Words: 325

I believe that the engine of global economic growth for the next five-year period will be China. I firmly also believe that it's not only appropriate, but critical for investors, even those whose focus is trading rather than investing to now take a look at China equities based on long-term investment horizons. [This article does just that with some specific investment suggestions.] Words: 1581

With negative sentiment toward China reaching an extreme in recent months, patient investors have been rewarded with this week’s news of improving data from the Asian giant. [In fact, according to BCA] this appears to be a good time to be investing in China, as stocks are historically cheap. Words: 760

I consider Dr. Marc Faber [to be] one of the best and well read economists in the world....[A] historical analysis of Dr. Faber's views...[shows] that he has been spot on most of the time, not exactly always on the timing, but surely on the trend of asset classes and the economy and, currently, he is bearish on almost ALL asset classes, including gold, [and I agree. Below are my reasons for being bearish in the near term.] Words: 880

With investors concerned about inflation it begs the following questions: "What is the best way to attempt to inflation-proof ones' portfolios? Buy TIPS? Short Treasury bonds? Stocks? Real Estate? Commodities? Gold? Currencies?...[In this article we review each option and come to a conclusion as to how best to hedge the risk of inflation.] Words: 1672

The U.S. is one of the worst debt 'offenders' in the world [and, as such, unless] dramatic spending cuts and tax increases [are undertaken within the next 5 years,] America's debt/GDP ratio will continue to rise, the Fed will print money to pay for the deficiency, inflation will follow, the dollar will inevitably decline, bonds will be burned to a crisp, and only gold and real assets will thrive. [Here's why.] Words: 674