Weekend Reading for Equity Investors: Positioning Portfolios for the Year Ahead
Continued central bank accommodation and a growing consensus that global economic conditions may be improving have combined to push equity indices higher at the start of the year. As we enter the heart of earnings season, investors will undoubtedly be looking for confirmation from the corporate sector.
Time will tell if the recent rush of enthusiasm on the part of investors will be rewarded. In the meantime, below are some stories to add to your weekend reading list:
Value Investors
- Howard Marks thinks this is a time for caution. (Oaktree Capital Management, PDF)
- Mario Gabelli on the hunt for investment opportunities. (Inside Investing, video)
- Cliff Asness says investors need to temper their expectations. (Forbes)
- Bruce Berkowitz’s Fairholme Fund came roaring back in 2012. (Fortune)
Market Outlooks and Indicators
- Jason Hsu’s capital markets forecast is worth reading for its refreshingly honest disclaimer alone. (Research Affiliates)
- Richard Bernstein’s 13 investment themes for 2013 are decidedly bullish. (Richard Bernstein Advisors, PDF)
- Sotheby’s (BID) stock price may be the world’s best predictor of bubbles. (Enterprising Investor)
Emerging and Frontier Markets
- GMO takes a dim view of the state of funding for China’s credit-dependent economy. (GMO, PDF)
- According to Sebastian Mallaby, Africa’s growth story remains compelling. (Financial Times)
- At least one observer thinks the “Africa rising” narrative may be prone to exaggeration. (Foreign Policy)
Companies in Focus
- Hewlett-Packard’s Autonomy acquisition on trial. (Uneasy Empires)
- Apple is no Polarioid, but . . . (The Brooklyn Investor)
- As Dell contemplates an LBO, Floyd Norris takes issue with the company’s history of financial engineering. (The New York Times)
- Hedge fund titans wage the Great Herbalife War of 2013. (Slate)
Too Big To Fail
- Dallas Fed President Richard Fisher offers a proposal for bank reform. (Federal Reserve Bank of Dallas)
- Bank of England’s Andrew Haldane argues that “Too Big to Fail” is far from solved. (Vox)
- A well-reasoned call for greater transparency and streamlined regulation in the banking industry. (The Atlantic)
Money to Burn
- Rising corporate cash levels and the changing role of cash on corporate balance sheets. (C. D. Howe Institute, PDF)
- Implications for investors of corporate cash stockpiles. (Institutional Investor)
Taking Warren Buffett to Task on Taxes
- Buffett knows that tax rates matter. (The Wall Street Journal)
- Buffett’s fuzzy math. (The Grumpy Economist)
In Memoriam
- Remembering Robert Haugen, the father of low-volatility investing. (MarketWatch)
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.
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