Category: CKW’s Blog

Dear Santa

Dear Santa,   All we want for Christmas is benchmark understanding.  Educating clients that managers need higher returns than the benchmark; firing managers because of drift and looking different from the benchmark; and having too many asset classes is not the...

Oops – Forgot Rate of Return!

A Nobel Prize was awarded to the theory that the best Rate of Return for an increment of risk is a balanced portfolio of stocks and bonds. An investor is only an owner (stocks) and/or a lender (bonds). An illiquid, less diversified, and more expensive alternative...

Future of Asset Allocation

If Asset Allocation has a future, the question is: What assets are in the AA decision?  CKW believes the combination of stocks and bonds provide good, hard to beat, risk-adjusted returns over time.  Buying stocks makes the buyer an owner and buying bonds makes the...

Focus on Earnings

We believe it is clear that central bank rates will rise.  Either all the money central banks printed, purchased, and manufactured went into the economy or it did not.  Like most things, it is probably somewhere in between.  Did the money inflate asset prices or just...

Gatekeepers – Don’t forget 60/40

As financial professionals we are all gatekeepers.  What eventually gets through each gate depends on each gatekeeper.  When you were taught the 8P’s of manager due diligence (some of you by me) for your CIMA, the P’s are not equal for all gates.  We all need to do a...

Use Passive Actively II

Passive investments used actively, efficiently manages the big rocks first.  Putting smaller rocks first takes up resources (more space).  Putting the big rocks first, then pouring the small rocks over the big rocks to fill the spaces between the big rocks creates an...