Three Reasons Why Cash Could Stay King in 1Q

Investors should be holding cash, expect volatility and be wary of a continued slide in risky assets such as stocks.

That’s the prescription from Bank of America Merrill Lynch’s strategist Michael Hartnett. He says that a spate of weak manufacturing…

Financial Markets Recharge with a Nap…Zzzzzz

This article is an excerpt from a previously released Sidoxia Capital Management complementary newsletter (January 4, 2016). Subscribe on the right side of the page for the complete text. Did you enjoy your New Year’s festivities? If you were like me and ate excessively and drank too much egg nog, you may have decided along the […]

Cash is far from meeting its Waterloo

Banknote printer De La Rue is cutting its output by a quarter amid a global glut. Denmark, Nigeria, Ireland and Swedish supergroup Abba are all chipping away at the status of cash. Yet growth in…

AAII Survey: Cash Allocations Hit Two Year High in September

While some investors have used the recent volatility as a buying opportunity, others are looking for safe haven. According to the American Association of Individual Investors, the levels of cash in investor portfolios rose in September to their highest…

The Ski Slope Market: What’s Next in 2014?

This article is an excerpt from a previously released Sidoxia Capital Management complementary newsletter (January 2, 2014). Subscribe on the right side of the page for the complete text.  Skiing, or snowboarding in my case, is a lot like investing in the stock market…a bumpy ride. Snow, wind, ice, and moguls are common for seasoned skiers, […

Fuel for a New Bull Market?

Fuel for a New Bull Market?

Lots of economists have talked about the deleveraging of the consumer and how it has slowed down the economy.  Consumers are reducing their debt loads, perhaps because they are uncertain about the future. 

How bad is a bond bear market?

How bad is a bond bear market?

Schwab’s latest piece of commentary has some interesting information. It looks at the returns of U.S. Intermediate-Term Government Bond Index in the last secular bond bear market from 1954 to 1981, a 27 year period. Here is what is said:  What does this...
Investors Say Cash Is King For Long-Term Goals

Investors Say Cash Is King For Long-Term Goals

Still think that investors don’t need a financial advisor? Ask the average person for the best investment for a long-term goal, and you’ll get an answer that will stupefy a financial planner: cash. Cash was king for long-term investment goals, according to a survey by Bankrate.com –

Should Gold Be Considered An Asset Class?

Should Gold Be Considered An Asset Class?

BY DAVID JOHN MAROTTA  Gold salesman and gold bugs continue to ignore the analysis which shows that the optimum asset allocation to gold is always zero. So it was with interest that I read, “Should Gold Be Considered An Asset...
Three reasons why the golden age of dividends is dawning

Three reasons why the golden age of dividends is dawning

By John Wasik (Reuters) – The golden days of summer might also brighten the portfolios of dividend lovers. With most large corporations swimming in cash as the economy and earnings improve, adopting a dividend-centric strategy looks even more...

Corporate cash balances still growing – and so is debt

Corporate treasurers’ risk tolerance remains low as they prefer to hold record amounts of cash on their balance sheets.Source: JPMorganThis is taking place at the time when companies have issued record amounts of debt to take advantage of ridiculously low rates. Increasingly however the proceeds of those bond sales and other borrowings sit in cash. T…

Bucket List: A Bucket for the Unknown

BY AUSTIN FEY  Not long ago, I splurged and bought my favorite ice cream as a treat after a long week. It sat in my freezer for the right moment to enjoy its sugary goodness. Finally I opened my freezer and found, to my horror, my treat had turned to mush. Why? My...

CPI Inflation Rate Calculator (Experienced vs. Reported)

BY DAVID JOHN MAROTTA  In Better to Bank with Cyprus Than the United States? we wrote, “In 1996 the government began measuring inflation differently, lowering the reported number significantly.” For financial planners, getting accurate information on inflation and...

Better to Bank with Cyprus Than the United States?

BY DAVID JOHN MAROTTA AND MEGAN RUSSELL  Imagine that five years ago, you could put your money either with a bank in Cyprus or America. After those five years, the bank in Cyprus will confiscate 10% of your money with a onetime tax. Where would be the more favorable...
Five questions to get to brass tacks with your money manager

Five questions to get to brass tacks with your money manager

By John Wasik (Reuters) – When interviewing a money manager, most investors want to know investment performance. It is a natural question, but there is much more you need to know beyond absolute returns. In lieu of focusing exclusively on annual performance, it...
How Long Might Your Portfolio Last?

How Long Might Your Portfolio Last?

When it comes to retirement, you want your portfolio to last at least as long as you do.  From BlackRock comes a useful table for estimating how long your portfolio will last, given return and withdrawal rate assumptions: 

Apple isn’t only company with too much cash

The opinions expressed in this commentary are solely those of Paul R. La Monica. Other than Time Warner, the parent of CNNMoney, Abbott Laboratories and AbbVie, La Monica does not own positions in any individual stocks.
Issuing preferred shares that pay a big dividend may not be the best use of Apple’s more than $137 billion of cash and liquid inves…

Grey Owl Capital on the Role of Cash in a Portfolio

Jeff Erber and Grey Owl Capital are out with their fourth quarter letter to investors.  In it, they highlight how they started to move more cash into equities in Q4 and have continued to do so in 2013.  This led to an interesting discussion about how they view cash as a component of their portfolio which we wanted to draw atte…