Like many of you, I?m sure, my reading over the past few weeks was largely influenced by the presidential election, discussions about the fiscal cliff and the fallout from the resignation of General David Petraeus. Still, there were plenty of articles, studies, and videos of interest to financial advisers. Here are a few, in case you missed them:
The Election
Stock Selection
- What happens when academics publish papers on price anomalies in the stock market and then investors promptly read the articles and enter the market to take advantage of the anomaly? Does the discrepancy disappear? According to ?Keep Digging: The Treasure Buried in Academic Papers about Market Anomalies,? researchers ?looked at 82 separate anomalies discovered by academics and examined the returns from the suggested strategy both before and after publication. They find that investors can still earn excess returns after publication, but that these returns fall by around a third.? (Economist)
- For more, here is the study: ?Does Academic Research Destroy Stock Return Predictability?? (SSRN)
Lehman Brothers vs Lehman Sisters?
- There is a pervasive belief that women are less risk-tolerant than men. After all, haven?t you heard more than once that the financial crisis might have been avoided if more women were in charge on Wall Street? Well. it?s time to rethink the conventional wisdom: ?Why Women Don?t Take Risks With Their Money? points out ?you can?t separate economic status from risk tolerance. . . . It?s not because [women] view themselves as savers rather than investors. It?s because they live economically more precarious lives than men.? (The Atlantic)
Practice Management
- Adam Bryant?s interview with Jeff Weiner, CEO of LinkedIn, for the weekly Corner Office column, is one of the best management articles I?ve read in a while. And while it ostensibly has nothing to do with wealth management, Weiner?s insights on management versus leadership, important leadership lessons, and firm culture are universal. (New York Times)
Muni Bonds
Holding Cash
- ?Cash is trash? goes the saying in the market these days. At other times, however, you hear market participants express another sentiment entirely: ?Cash is king.? In a blog post ?Cash as Trash, Cash as King, and Cash as a Weapon,? Tom Brakke, CFA, explains that ?investment professionals should get away from misguided notions about how much cash is too much cash in a portfolio. Let the manager use the value and power of cash to execute a strategy.? (Inside Investing)
Retirement Planning
Tax Planning
- Thomas O. Katz, a partner at the law firm Katz Baskies LLC, recently spoke to The Community Foundation of Broward County on end-of-year gift and income tax planning. His outline provides a top-notch summary of what you should be thinking about in the coming weeks and beyond. (Katz Baskies LLC, PDF)
- Lori Montgomery, writing in the Washington Post, notes that ?unless Congress acts by the end of the year, more than 26 million households will for the first time face the alternative minimum tax (AMT), which threatens to tack $3,700, on average, onto taxpayers? bills for the current tax year.? She cautions that ?unlike most tax increases in the fiscal cliff, including the expiration of the George W. Bush?era income tax cuts, the AMT bill would come due almost immediately. And tax experts say it would be extremely disruptive to try to fix the AMT after the 2012 tax year closes Dec. 31.? (Washington Post)
Behavioral Economics
Social Media
Philanthropy
And Now for Something Completely Different
For more news and trends, visit the Private Wealth Management Community of Practice page.
Please note that the content of this site should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of CFA Institute.
Photo credit: ?iStockphoto.com/JLGutierrez
jermaine jones hbo luck unc asheville stephen jackson nba trade deadline ncaa tournament marchmadness
কোন মন্তব্য নেই:
একটি মন্তব্য পোস্ট করুন