Behind Davis Advisors’ “Wall of Mistakes”
Danton G. Goei joined Davis Advisors in 1998. He is a portfolio manager for the Davis Large Cap, Global, and International Portfolios and a member of the research team for other portfolios. In this interview, he discusses those funds and why Davis maintains a “wall of mistakes” that immortalizes its investment blunders.
High Yield Train Wreck
The first defaults will occur at the lowest end of the problematic market: high yield or “junk” bonds. They will play a role comparable to subprime mortgages in the last crisis. We’ll see mortgage problems as well, but I think overleveraged companies will be the core problem.
Building a Better U.S. Economy
This shouldn’t surprise anyone, but public trust in the federal government is eroding. Sixty years ago, 75 percent of Americans expressed faith in the government to do the right thing “most of the time” or “just about always.” Seventy-five percent! You can’t get 75 percent of people to agree on anything now, as the recent “Laurel or Yanny” video proved.
Trump "Victories" on Trade are Anything But
Earlier this year when President Trump began beating the drums loudly, causing fear of a trade war (and assuring us that such a conflict could be easily won), I cautioned that he had no idea the trouble he was courting . Based on his spectacular misunderstanding of the power dynamic built in to international trade, he was also in danger of bringing a knife to a gunfight.
S&P 500 Snapshot: Down 0.24% from Yesterday
The S&P 500 fluctuated around a smaller interval to start the week and dropped midweek. The index saw a gain of 0.31% from last Friday and 0.24% loss from yesterday. The index is up 0.95% YTD and is 5.27% below its record close.
ECRI Weekly Leading Index Update
This morning's release of the publicly available data from ECRI puts its Weekly Leading Index (WLI) at 148.5, down 0.2 from the previous week. Year-over-year the four-week moving average of the indicator is now at 3.34%, down from 3.80% last week. The WLI Growth indicator is now at 3.5, down from the previous week.
Geopolitics Update: Trade War, Tariffs & the Coming Tech Implosion
As the Trump administration’s on-again, off-again trade war with China continues to create uncertainty for investors, we sat down with geopolitical strategist Peter Zeihan to learn more about the tariff program and what it could mean for the US economy.
Equity-Sector Leadership Can Shift Amid Rising Interest Rates
In an environment in which interest rates have been steadily rising — the 10-year US Treasury yield has moved up almost 75 basis points since its recent low in September 2017 — one question that investors face is the potential effect of this phenomenon on equity sectors. Which sectors might be winners or losers in a rising rate environment?
Schwab Market Perspective: Buy in May…and Stay?
Stocks have rebounded along with economic data, could we be setting up for a solid summer?
The Madness of Crowding Out
Public debt may be growing at the expense of private debt, the Chinese bond market is opening up, and important dates for tariffs are fast approaching.
Asia's Stability Makes It Poised for Growth
Matthews Asia CIO Robert Horrocks says Asia’s political and economic environment looks strong for the region’s long-term growth prospects.
The Fundamentals of RAE: Seeking Value Beyond Borders
It may be time for U.S. investors to challenge their home-country equity biases.
US Economic Growth: A Sustainability Story?
US stocks have boomed for nine years, supported by one of the longest economic expansions in the postwar period. Can this growth be sustained? Much depends on how the challenges of environmental and social sustainability are addressed.
Kansas City Fed Survey: Growth Expanded in May
The latest index came in at 29, up from 26 last month, which indicates that activity expanded in May. The future outlook decreased to 26 from 31 last month. Here is a snapshot of the complete Kansas City Fed Manufacturing Survey.
Tackling Student Debt and College Savings Plan Myths
The cost of a college education continues to rise, and along with it, student debt. Roger Michaud, senior vice president and director of college savings for the Franklin Templeton 529 College Savings Plan, and Mike O’Brien, director, Program Marketing, Global Client Marketing, look at how mounting student debt could have a long-term impact on one’s future.