Fw: Can Active Management Be Indexed?

 

View Our Website [»] Archives [»] Find us on Facebook Follow us on Twitter Thursday, June 16, 2011 YOUR BEST SOURCE FOR THE UNBIASED MARKET COMMENTARY YOU WON'T GET FROM WALL STREET Can Active Management Be Indexed? by Ron Rowland Thursday, June 16, 2011 at 7:30am Regular readers know that I love ETFs. This fairly recent invention has revolutionized investing for millions of people. Now I think we're entering a new era of innovation. Why? Today we're going to look at some new ETFs, just launched by the venerable Frank Russell Company. Unlike most new offerings, which are simply "me-too" products intended to fill in the sponsor's product line, the new Russell ETFs do something different ... and also restore something we once had but then lost. An Extremely Important "Fireside Chat" from Martin Martin Weiss has just recorded an exclusive chat from his home that he would like to share with his best friends and most loyal readers. Click here to learn about the exceptional way he plans to show you his gratitude. Internal Sponsorship Intrigued? Read on ... The Problem with Indexing The first thing you need to understand is that almost all ETFs are designed to track an index. A few are "actively managed", but they haven't really caught on yet. (They will, but that's another subject.) The advantage of having ETFs follow an index is that the portfolio is transparent. Everyone knows what is in the index, and therefore (more or less) what is in any ETF that follows it. This is not the case in mutual funds. At best, you'll get a peek under the hood once a month, and maybe as little as every six months, and almost always with stale data. The disadvantage of this structure is that most ETF managers have very little discretion. If the index includes some ugly, low-performing stocks, the ETF has to own them anyway. Some people — the so-called "efficient market" fans — think it is a good thing to handcuff the managers because they're convinced active managers never add value. They subscribe to the theory that index funds with low expenses are the best investment options no matter the circumstances. Well, I like index funds, too. But back before ETFs came along, I found success rotating my mutual fund portfolio between the various active equity management styles. Sometimes the "earnings momentum" strategy was best, while other times I would be better off in a "growth at a reasonable price" fund or an "equity income" fund. Peter Lynch pursued a 'Growth at a Reasonable Price' strategy in the 1980s when he earned his fame running the Fidelity Magellan fund. In the 1990s, mutual fund companies started imposing penalties on what they considered "short-term" investors who doubted the "buy and hold forever" philosophy. ETFs were invented, in part, to resolve this conflict. It worked pretty well. Dedicated long-term investors stayed in mutual funds that welcomed them. Active investors (like me) started using ETFs that welcomed us. In the process, however, we active traders lost access to some active equity strategies: Those not easily tied to an index. Now Russell is trying to restore this ability with a slew of new ETFs. Russell studied many equity managers and found that while their approach to investing was considered active, most of them followed a fairly strict selection process. In fact, they found many strategies strict enough to be defined by rules that could be transformed into indexes that mimic active investment disciplines. Uncle Sam Maxed Out! Are you worried about rising interest rates ... the falling dollar ... and the bearish impact these events could have on your fixed income portfolio? Click here now for your free Rising Interest Rate Tool Kit including a complimentary special report: Prepare Now for Rising Rates and Inflation! This report has the full story about the risks we see in today's bond market. Plus, we'll give you details about a strategy geared to perform in this interest rate-sensitive climate. Go here now! External Sponsorship Russell calls these new funds the Investment Discipline Index ETFs. Here's the complete list: Russell Aggressive Growth ETF (AGRG) buys companies expected to have above-average near-term earnings growth. This is often called an earnings momentum strategy. Russell Consistent Growth ETF (CONG) focuses on companies with above-average long-term earnings forecasts and consistent historical earnings growth. Russell Growth at a Reasonable Price ETF (GRPC) selects stable companies that are moderately priced based on their long-term forecasted earnings growth relative to their price-to-earnings ratio (PEG ratio). Russell Contrarian ETF (CNTR) pursues companies that have consistently lagged the market and their sector peers. It tries to identify opportunities for the stock price to improve based on a low historical price-to-sales multiple. Russell Equity Income ETF (EQIN) focuses on companies that demonstrate the ability to pay a stable dividend. Russell Low P/E ETF (LWPE) buys companies trading at lower price-to-earnings (P/E) multiples relative to their prior level or their sector peers. Russell is the company behind the indexes widely used by institutional investors. The headline in today's column poses the question of whether or not it is possible to index active management. I believe the answer is yes, if it is "disciplined" active management. "Quant funds" is another way to describe them. However, once the investment style is quantified by a strict set of rules, manager discretion is no longer part of the equation. This is a big deal — a much bigger deal than most investors realize yet. Word is starting to spread, though. Just last week, I was interviewed by a reporter from Barron's who had many questions about Russell's new ETFs. It may take some time for interest to grow. But once investors and financial advisors realize how useful these ETFs are, they'll jump aboard quickly. You'll be way ahead of the crowd if you learn about them now. Best wishes, Ron P.S. To see how I use ETFs to profit from ever-changing global market conditions with my International ETF Trader service, click here.   More Signs of Weakness in the Markets Since Claus Vogt warned about the deteriorating market conditions a month ago, economic indicators have gotten even worse. We look at three technical indicators showing that a top in the stock market has already formed, and a bear market is imminent. Click here to view [»] Revolutionary Announcement! Find out how Weiss Research is redoubling our efforts to make sure you have the investment intelligence and recommendations you need to keep your money safely growing. [More »] U.S. Stocks? You Deserve BETTER! If you're investing only in U.S. stocks, you're investing with one hand tied behind your back! Turn up your computer speakers and click here now to learn more. It's time to give yourself a BIG, FAT pay raise! My proprietary "Income Kickers" can give you additional income equal to 58% of your initial investment each and every year! Claim your FREE report here. The Secret Pact to Devalue the U.S. Dollar Larry Edelson has been warning for years that Washington was embarking on an unholy war to try to pay back its tower of debts with cheaper dollars ... [More »] Warren Buffett, Peter Lynch and Bill Gross Are Leading the Way We are witnessing one of the greatest wealth shifts of all time as trillions of dollars are leaving the world's most advanced countries and pouring into Asia and Latin America ... [More »] Oversold, but Unable to Bounce! Four weeks ago I discussed the quickly deteriorating macroeconomic picture, both in the U.S. and internationally. Since then the outlook has corroded more. Especially noteworthy: Interest-rate spreads ... [More »] Free Web Briefing Your freedoms ... Your savings ... Your investments ... Your retirement ... Your personal safety ... WIPED OUT By April 2012 Click here for the uncensored story. Internal Sponsorship UNCOMMON WISDOM The Best Way to Invest in the Tablet Market by Tony Sagami My kids have been bugging the heck out of me to buy them an iPad. Even though they already have an iPod, an iTouch, and an iPhone, they just have to have an iPad. A lot of other ... [ More » ] Receive your Silver and Gold Investor Kit $99 Value. Free! Top Stock Picks with Free Profit Confidential e-letter! Make Serious Money Trading Stocks for FREE! 2 FREE Weeks of Investor's Business Daily® and investors.com! External Sponsorship MoneyandMarkets.com UncommonWisdomDaily.com WeissRatings.com WeissWatchdog.com WeissResearchIssues.com Have comments? Tell Us! About Money and Markets For more information and archived issues, visit http://www.moneyandmarkets.com Money and Markets is a free daily investment newsletter published by Weiss Research, Inc. This publication does not provide individual, customized investment or trading advice. All information is based upon data whose accuracy is deemed reliable, but not guaranteed. Performance returns cited are derived from our best estimates, but hypothetical as we do not track actual prices of customer purchases and sales. We cannot guarantee the accuracy of third party advertisements or sponsors, and these ads do not necessarily express the viewpoints of Money and Markets or its editors. For more information, see our Terms and Conditions. View our Privacy Policy. Would you like to unsubscribe from our mailing list? To make sure you don't miss our urgent updates, just follow these simple steps to add Weiss Research to your address book. Attention editors and publishers! Money and Markets teaser content may be republished with a link to the full story on MoneyandMarkets.com. Such republication must include attribution with a link to the MoneyandMarkets home page as follows: "Source: http://www.moneyandmarkets.com" Weiss Research, Inc. | 15430 Endeavour Dr. | Jupiter, FL 33478 | 1-800-291-8545

FW: RBC Economics Research - "Economics Digest" - Link to the latest edition

Latest RBC economic digest.
// from, jason.wang@rbc.com

http://www.rbc.com/economics/market/pdf/provfcst.pdf

Chinese market increasingly important to the province
The silver lining emerging from the 2008-2009 recession has been the
impressive
gains made by B.C. exporters at diversifying their markets. In
particular,
exports to China more than doubled in the past two years and will soon
surpass
those to Japan, the current number two export destination in the
province behind
the United States. Continued advances in China, and, to a lesser extent,
Europe
and other Asian countries in recent months have contributed to
maintaining B.C.
exports on an upward track. Among other things, these inroads into
foreign markets
have brought life back to the province's forest products sector.
_______________________________________________________________________

This email may be privileged and/or confidential, and the
sender does not waive any related rights and obligations.
Any distribution, use or copying of this email or the
information it contains by other than an intended recipient
is unauthorized. If you received this email in error,
please advise the sender (by return email or otherwise)
immediately. You have consented to receive the attached
electronically at the above-noted email address; please retain a
copy of this confirmation for future reference.

Ce courriel est confidentiel et protégé. L'expéditeur ne renonce
pas aux droits et obligations qui s'y rapportent. Toute diffusion,
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Jericho beach

After dinner

FW: June 6 Federal Budget Update,

 

 Subject: June 6 Federal Budget Update.

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The North Shore Wealth Management Group

RBC Dominion Securities Inc.
Professional Wealth Management since 1901.

Federal Budget Update 

    

Good morning, 

RBC Wealth Management has reviewed the June 6 Federal Budget document which largely re-introduces the commitments from the March 22 budget. As a result, We are happy to provide you with an updated summary of the key tax measures that are of most interest to Canadian investors.

Highlights of the budget include:

• No changes to personal or corporate tax rates, or changes in planned indexation of personal tax brackets and tax credits.
• Limited new spending measures, with a focus on making technical adjustments to close unfair tax loopholes that are perceived to be abusive.
• New rules to restrict the exemption from capital gains tax on the donation of flow-through shares to a charity.
• Limiting the ability to swap assets between RRSP/RRIF and non-registered accounts.
• Limits on the ability for a small business owner's corporation to deduct past service contributions for an Individual Pension Plan (IPP).
• A number of small targeted tax credits for individuals and their families.

For more details about the June 6, 2011 Federal Budget, please refer to our attached updated 2011 Federal Budget Update.

If you have any questions about the Budget, how it impacts you, or any other wealth management issues, please feel free to contact us at any time.

Kind regards,

 

Arif Devji, Don Bell, Monica Liang and Majay Raniga 
The North Shore Wealth Management Group.

RBC Dominion Securities Inc.
T: 604.981.2312|  TF: 1.800-375.0585|  250 15th Street, Suite 201|  West Vancouver, British Columbia, V7T 2X4  |  www.arifdevji.com

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Contact Information

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  (604) 981 - 2303
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  (604) 981 - 2302
• Majay Raniga
  (604) 981 - 2312
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Fwd: Telecom Sector Rides the Internet Wave

* Sent from my Apple iPhone

Begin forwarded message:

From: "Money and Markets" <eletter@e.moneyandmarkets.com>
Date: 2 June, 2011 4:33:01 AM PDT
To: <computerdiy@yahoo.com>
Subject: Telecom Sector Rides the Internet Wave
Reply-To: Do-Not-Reply@e.moneyandmarkets.com

View Our Website [»] Archives [»] Find us on Facebook Follow us on Twitter Thursday, June 2, 2011 YOUR BEST SOURCE FOR THE UNBIASED MARKET COMMENTARY YOU WON'T GET FROM WALL STREET Telecom Sector Rides the Internet Wave by Ron Rowland Thursday, June 2, 2011 at 7:30am If, like me, you're old enough to remember a time without the Web and e-mail, the fact that you're able to read an online publication like Money and Markets is impressive. Even more so if you are reading it on your smartphone. Sometimes I still can't believe it ... I'm in Texas, Weiss Research is in Florida, and our readers are all around the world. Today we'll take a look at the sector that makes much of the Internet possible: Telecommunications. With ETFs, you ... [More »] Want to invest in ETFs? Check out the International ETF Trader. Three Warning Signs from the Stock Market Claus Vogt sees 3 technical signs that indicate the cyclical bull market in stocks is coming to an end. They include negative divergence in the banking sector, a failed breakout and broken uptrend in the S&P 500, and weakness in the emerging markets. Click here to view [»] News Flash: Worst Numbers in Years The Institute for Supply Management's index plunged to 53.5 last month — the lowest reading since September 2009. ADP reported the economy only created 38,000 jobs. U.S. home prices have just suffered their worst decline in 16 months! When blockbuster news like this explodes into the headlines, you really have only two choices: You can either run for cover or come out fighting. We're going to issue a set of new trading recommendations to seize the moment. If you'd like to get them, you need to jump on board with us before then. Click here to learn more. Expert opinions may differ. Understanding diverse viewpoints will help your own decision making. Home Prices Plunge to New Lows! What to Do ... by Mike Larson Despite the greatest all time infusion of Fed money into the housing market, despite the governments' massive rescue of Fannie Mae and Freddie Mac and despite ... [More »] China Electricity Shortage Implications by Rudy Martin China is facing severe electricity shortages that are likely to get worse before they get better. As a result, second-quarter economic growth may be ... [More »] Interest Rate Strategy for Profits by Mike Larson A combination of factors has led me to shift my strategy in search of biggest profits. My response is to take profits off the table in ... [More »] Metals: It's the Long Term by Larry Edelson Stay focused on the long term to help you avoid being shaken out by wild swings in the short term. And look to buy gold, silver and mining shares on ... [More »] External Sponsorship Receive your Silver and Gold Investor Kit $99 Value. Free! Top Stock Picks with Free Profit Confidential e-letter! Make Serious Money Trading Stocks for FREE! 2 FREE Weeks of Investor's Business Daily® and investors.com! Free Access: Our Options Strategy Beat the Market By 28% Would you be willing to pay higher taxes to help reduce the U.S. government deficit? VOTE GET RESULTS Welcome to Money and Markets. The events of the past few years have reminded us that living beyond ones means doesn't work, even for governments. As we watch circumstances unfold in Europe, we see many similarities to the U.S. And we feel the discomfort of uncertainty. None of the options facing Europe or the U.S. will be easy pills to swallow. Budget cuts, tax hikes and debt restructuring will deal painful blows to the financial markets, institutions and government programs we depend on. So there is no doubt each one of us will be affected. But, we can prepare ... With independent research and analysis, you can make the best decisions possible to protect and grow your assets. And Weiss Research is here to help you at every economic bump and turn. In fact, if you missed any part of the world premiere of JUDGMENT DAY for the United States of America, or would like to watch it again, just click here. And for details on the many tools we offer to empower investors, visit Weiss Research. As always, if you have a comment, we'd like to hear it. Just Tell Us! P.S. Don't miss excerpts from Martin Weiss's new book: The Ultimate Money Guide for Bubbles, Busts, Recession and Depression.   Sometimes opinions differ. Understanding diverse viewpoints will aide your own decision making. The Stock Market Is Sending Three Bearish Messages The stock market is a leading indicator with an impressive track record. Recent developments in the banking sector, S&P 500 and emerging markets have important implications for ... [More »] A Good Call for Higher Income In my latest Income Superstars, I told subscribers about a compelling way to get even more income out of many of the stocks I've recommended. We're at a time in the market when call options make A LOT of sense. [More »] Three Recommendations for Safety and Profit Here are three practical solutions you can act on immediately to avoid the unprecedented threats to your money on the horizon: Bank failures, economic storms and the next big debt crisis. [More »] The World Is Still Around; So Is the Dollar! In the past weeks, the dollar has surprised many people by staging a broad-based bounce. I wasn't among them. For more than two years, every time the dollar has turned down ... [More »] advertisement How Safe is Your Money? Check Strongest and Weakest    Auto Insurers    Business Insurers News and Articles Track Bank Failures Get Financial Ratings Visit WeissWatchdog.com for the latest stock and mutual fund ratings. CLICK HERE TO LEARN MORE UNCOMMON WISDOM 4 Moves Every U.S. Investor Should Make by Tony Sagami The jockeying for 2012 votes has already started, and you're going to hear a lot about raising the debt ceiling as well as reducing the staggering amount of debt that our country is in hock for. Do you think the U.S. government can ... [ More » ] YESTERDAY'S CLOSE CLICK FOR UPDATE About Money and Markets For more information and archived issues, visit http://www.moneyandmarkets.com Money and Markets is a free daily investment newsletter published by Weiss Research, Inc. This publication does not provide individual, customized investment or trading advice. All information is based upon data whose accuracy is deemed reliable, but not guaranteed. Performance returns cited are derived from our best estimates, but hypothetical as we do not track actual prices of customer purchases and sales. We cannot guarantee the accuracy of third party advertisements or sponsors, and these ads do not necessarily express the viewpoints of Money and Markets or its editors. For more information, see our Terms and Conditions. View our Privacy Policy. Would you like to unsubscribe from our mailing list? To make sure you don't miss our urgent updates, just follow these simple steps to add Weiss Research to your address book. Attention editors and publishers! Money and Markets teaser content may be republished with a link to the full story on MoneyandMarkets.com. Such republication must include attribution with a link to the MoneyandMarkets home page as follows: "Source: http://www.moneyandmarkets.com" Weiss Research, Inc. | 15430 Endeavour Dr. | Jupiter, FL 33478 | 1-800-291-8545