Category: CKW’s Blog

Dow 30,000, S&P 500 3000?

4/11/16 – We asked for an $18 trillion loan. No one responded. At the time the market PE was approximately 16x current earnings or an E/P earnings yield of 6.25% plus a dividend of 2%. 8/12/16 – The DOW was at 18,473 – 450 times its original value of 40.94 in 1896....

Investing Is Art

We humans looking for an investment job need to remember: the computer is quicker, faster, and cheaper at math than we will ever be. Understanding math and using the math to invest the way science proved works is still not art because AI can remember and recognize...

What a client wants

The benchmark is the benchmark. We sold it, had the client immortalize it in writing (IPS) and put a spotlight on it at every quarterly meeting (performance report).  The benchmark is now something to beat (relative, absolute, or adjusted).  The benchmarks humble...

Active vs Passive is part of asset allocation

Our industry sets standards of due diligence, research, analysis, education, and other criteria to manage parts of a portfolio.  Do the people and organizations picking the parts add value to the whole?  Is it manager selection or asset allocation? Every active or...