Renowned investor Jeremy Grantham, Chief Investment strategist of Grantham, Mayo, and van Otterloo makes the case for investing in resource equities. He suggests valuations are hovering near historic lows relative to the broad market, and when resource equities have been cheap relative to the broad market historically, they’ve performed quite well going forward. Yet investors are wary of investing in commodity producers due to the commodity price risk and the always uncertain commodity outlook. He tells us that long-term investors willing to tolerate that shorter-term risk should strongly consider whether they have allocated enough to this exciting and unloved segment of the market.
We spotted a fascinating research report on dividend yield and how companies with high expected yields typically do not return anything near the expected rate and the actual returns are much less. Many investors reach for yield and the data suggests the best position for expected yield to match realized dividend yield is between 3% to 5%.
The other day I came across an article that struck me in such a profound way, I thought it would be meaningful to share with those who happen to visit our website on occasion. It’s a tale about big life-altering gains that can materialize if you are patient. The writing here is spectacular and I thank the good people at the Daily Reckoning site for sharing with us. I hope you enjoy it as much as I do!
As a Certified Financial Planner®, Randy has been designing financial plans for clients for over 21 years and owned an independent financial planning firm before joining CORDA. His financial planning skills tethered with CORDA’s investment management can provide a powerful combination to help clients pursue their financial goals and dreams.
In addition to his fondness for financial planning, Randy developed an interest in specialty crops over the years and presently owns a small farm in southern Kentucky where he grows hops and is experimenting with hϋgelkultur gardens. We are delighted to have his rich background here at Corda.
Columbia Graduate School of Business professor Joel Greenblatt makes a key point:
“Prices fluctuate more than values—so therein lies opportunity. Why do the prices fluctuate so widely when values can’t possibly? I will tell you the answer I have come up with: The answer is I don’t know and I don’t care. We could waste a lot of time about psychology but it always happens and it continues to happen. I just want to take advantage of it. We could sit there and figure it all out, but I like to keep it simple. It happens; it continues to happen; the opportunities are there.”
Click below to read two articles about
Royal Dutch is a business clearly focusing on natural gas. This is a balanced article that discusses the state of the oil and gas market and shares with you information about which companies are focusing on oil and/or gas. Enjoy!
If you own a home you may consider refinancing your mortgage:
The 30-year fixed-rate mortgage followed Treasury yields lower, falling 7 basis points to 3.41% this week, according to Freddie Mac. Last week the fixed-rate averaged 3.48%, and a year ago it was at 4.04%. “Continuing fallout from the Brexit vote drove Treasury yields lower again this week,” said Sean Becketti, chief economist at Freddie Mac.
So if you’ve been considering a mortgage refinance, now’s the time.
Homeowners who have rate higher than 4.5% on a 30-year mortgage (those 4.5% loans were common up to 2011, says Gumbinger) would benefit from refinancing if they have excellent credit.
CORDA is pleased to announce Dustin Slater has joined the team. Dustin is a 2004 graduate of the University of Texas and earned an MBA at the Jones Graduate School of Business at Rice University in 2012.