John Osbon's Posts

If you are suffering from too much news (“infobesity”) and too many dire predictions (“calamity fatigue”) then the annual Windham Global Solutions client conference last week would have been a welcome break.  It was for us.  Windham, our asset allocation and risk management advisor, had a full menu of meaty topics over two days.  Here are some highlights. Windham is a…

When we describe our index boutique approach to investing, people often ask: “If indexing is so great why don’t more professionals do it?” The answer is:  “They do”.  A quick look at high profile, successful professional active managers shows a significant portion of assets going the index route.  See who’s doing it. Elites do it Many endowment funds – the…

In two words, cash flow.  And not just in Europe.  Record high dividend payments are a worldwide phenomenon and are occurring despite doom and gloom reports about Europe in the popular media.  Healthy dividend yields on non-US ETFs raise a good question: should you own them? Cash flow is knowable A quick scan of popular ETFs shows how rich some…

When Detroit defaulted on $19 billion in general obligation bonds, it barely caused a ripple in the $3.7 trillion muni market. But for the unlucky few who held those bonds, it’s a dime-on-the-dollar catastrophe. What’s the lesson we can learn from the Detroit experience? Bond defaults are very rare these days. The wave of big muni defaults that Meredith Whitney…

For too long investors have not gotten the full story about their investment returns. What’s missing is one simple, understandable performance number: after-tax return.  It’s time for investors to expect and get this crucial figure: “Here’s your rate of return after taxes.” I expect much of the financial industry cringes at this idea. Let’s say your portfolio starts the year at…

It’s easy for a few little words – maybe an idea in your head, or something you overhear at the office – to trigger some truly unfortunate investment decisions. For instance, “It’s a sure thing!” rarely is. This week’s post is a series of eight brief phrases that are better left unsaid and unheard.   “They say gold is going…

Jack Lew, as Treasury Secretary, signs our dollar bills. In my mind that gives him some credibility in the field of investing. Based on a recent Bloomberg article that described his own personal investments, I give him fairly high marks on his approach. Here’s what we know. Government disclosure documents show that part of Lew’s assets are held in five…

For the fifth year, Fidelity sponsored TEDxBoston, an event “catalyzing innovation by sharing ideas with citizens around the world.”  I think I speak for everyone there last week when I say that the TEDx speakers are an impressive group.  Most of us, I believe, were positively overwhelmed by the creativity, boldness, drive and vision of these Boston locals. The event’s speakers are “luminaries who hail from…

It’s a classic investor dilemma. You’re holding cash that you’d like to invest. But the market is at or near an all-time high.  You don’t want to buy at the top – no one does – but how long should you wait before investing the cash?   You shouldn’t wait at all.    Cash is not an investment since it…