A Value Recovery Is Long Overdue

It’s been a long, hard slog for value stocks lately. I’d say we’re long overdue for a value recovery. But what would it take?

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Defining a New Framework for Equity Investing

Equity investing is facing a crisis of confidence. After several years of high volatility, disappointing returns and the failure of conventional diversification, the fear of equities is pervasive. After all, how can anyone rely on equities to meet future targets when extreme market turmoil can destroy years of careful planning in a heartbeat?

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A New Paradigm for Balancing Risk and Return

One of the greatest challenges facing money managers in the aftermath of 2008 has been how to balance the fear of loss against the need to take risk in order to generate positive real returns. Striking the right balance between them will, I believe, be the key to investment success in 2012.

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The Power of Diversifying by Investment Time Horizon

No portfolio is protective in all environments, but the best risk-management strategy is to maintain exposure to well-chosen investments and strategies with short, intermediate and long time horizons. Each group will be poised to outperform in different markets and in response to different investor moods.

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How to Diversify When Markets Are Highly Correlated

With economic and political developments driving big gyrations in equity markets, at first blush it seems that all stocks are moving together and diversification benefits have diminished. But as my colleague Andrew Chin explained in a recent article, spreading exposures across the spectrum of equity risk and return factors is now more important than ever. 

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Investing in a Range-Bound Market

What do you do when equity markets are highly volatile within a relatively narrow trading range as a result of low levels of investor confidence? Keep a foot in both the contrarian and momentum camps.

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