March, 2017

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Today in Market History

The Irrelevant Investor

[link] Eighteen years ago today, the Dow Jones Industrial Average closed above 10,000 for the first time ever. But under the surface, some funky things were happening. Here's Gretchen Morgenson from the New York Times: A lurking concern, however, is just how narrow the market's advance has been. A growing portion of Americans' investment money is devoted to the 30 well-known companies in the Dow and the components of the Standard & Poor's 500-stock index, which rose near its record yesterday

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Starting Points

Brown Advisory

Starting Points achen Tue, 03/28/2017 - 14:11 The numbers tell a clear story about the growing number of investors interested in sustainable investing. Assets in investments aligned to environmental, social or governance factors increased nearly fivefold between 2012 and 2016, according to US SIF Foundation. Still, nearly three out of four investors wait for their advisors to raise the topic of sustainability in relation to their portfolios, according to a 2013 survey by Calvert Investments.

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Stress Testing Your Portfolio

The Irrelevant Investor

I recently received an email about a piece of software that would allow us to stress test our portfolios. Some of the scenarios included: What if interest rates rise back to historical levels or above, with 10-year treasury rates at 5%, as a result of renewed growth in the US economy? What if the S&P has a strong correction and falls 20% over a short timeframe?

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A Picture Says 1.2 Trillion Words

The Irrelevant Investor

From 2007 through 2015, $835 billion was yanked out of active mutual funds and $1.2 trillion plowed into index funds. Below is the most compelling image I've seen to explain why this secular change is taking place. Index funds aren't perfect, as Ben recently laid out , but assuming you can control your behavior, which is more important than whether you own every stock in an index or only 20% of them, indexing gives investors the best chance of capturing whatever returns the market will deliver.

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8 Ways to Torture Your CFO

The office of the CFO is rapidly evolving, with more and more demands being placed upon the finance and accounting team each year. Join us in this webinar, where we share 8 things to NOT do when it comes to helping the CFO office advance in supporting the business. Learning Objectives: This course objective is to understand how best to support an organization's finance leadership.

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Know What You Own

Brown Advisory

Know What You Own achen Tue, 03/28/2017 - 14:26 Some Wal-Mart stores sell rifles, some Starbucks coffee shops sell alcohol, and GE builds engines for jet fighters and bombers. Some investors feel strongly about these and other issues, to the extent that they choose to screen out companies that do not agree with their values or societal priorities. We help many of our clients align their portfolios with their values, and screening is one of the tools we employ to accomplish that alignment.

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Impact Investing: Five Ways To Make Your Mark

Brown Advisory

Impact Investing: Five Ways To Make Your Mark achen Tue, 03/28/2017 - 14:58 Henry David Thoreau did not live to see the rise of impact investing, but he captured the spirit of it with a simple insight—“Goodness is the only investment that never fails.” Impact investors align their assets behind their advocacy, whether it be for advances in environmental stewardship, human livelihood or public policy.

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Know What You Own

Brown Advisory

Know What You Own. achen. Tue, 03/28/2017 - 14:26. Some Wal-Mart stores sell rifles, some Starbucks coffee shops sell alcohol, and GE builds engines for jet fighters and bombers. Some investors feel strongly about these and other issues, to the extent that they choose to screen out companies that do not agree with their values or societal priorities.

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Impact Investing: Five Ways To Make Your Mark

Brown Advisory

Impact Investing: Five Ways To Make Your Mark. achen. Tue, 03/28/2017 - 14:58. Henry David Thoreau did not live to see the rise of impact investing, but he captured the spirit of it with a simple insight—“Goodness is the only investment that never fails.”. Impact investors align their assets behind their advocacy, whether it be for advances in environmental stewardship, human livelihood or public policy.

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These Are The Goods

The Irrelevant Investor

It’s funny, I thought my life would change when I had a baby, and it certainly has, but one thing I didn’t count on is how much more time I would have. He sleeps, and he eats. That’s it for now. So I’ve been either home or at the office and I’ve consumed more content in the past three weeks than over any other three week period in recent memory. I know that will change quickly, but in the meantime, I wanted to share some incredible stuff from this week.

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Will The Rise of Factors Kill Factor Investors?

The Irrelevant Investor

A recent WSJ report says that "Revenues at HFT firms from U.S. equities trading were an estimated $1.1 billion last year, down from $7.2 billion in 2009." That's an 85% decline in under a decade! When it comes to business and markets in particular, edges don't last very long. The brilliant mathematician Benoit Mandelbrot said it best, “Winning strategies tend to have a brief half-life.

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How to Streamline Payment Applications & Lien Waivers Through Innovative Construction Technology

Speaker: Dylan Secrest, Founder of Alamo Innovation and Construction Digital Transformation Consultant

Construction payment workflows are notoriously complex when you consider juggling multiple stakeholders, compliance requirements, and evolving project scopes. Delays in approvals or misaligned data between budgets, lien waivers, and pay applications can grind progress to a halt. The good news? It doesn't have to be this way! Join expert Dylan Secrest to discover how leading contractors are turning payment chaos into clarity using digital workflows, integrated systems, and automation strategies.

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Gradual Improvements Go Unnoticed

The Irrelevant Investor

When I sat down this morning to create a "Wall of Worry" chart, the hard part wasn't coming up with the list, but rather choosing what to leave off. Since stocks bottomed in 2009, there have been so many potential reasons to sell that it wasn't possible to fit them all. Below are a few that didn't make it: MF Global Bankruptcy All the quantitative easing programs Ashton Kutcher is a venture capitalist China hard landing(s) Occupy Wall Street Is Deutsche Bank the next Lehman?

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The Three Types of Contrarians

The Irrelevant Investor

It seems like everybody wants to be a contrarian these days. Predictably, there were a lot of "Bill Ackman is out of Valeant, that's your buy signal" comments this week. I want to talk about the three different types of contrarians: those who are early, those who are late, and those that are right. On the early side, for example, are those who have argued that U.S. stocks are too expensive, or people saying this bull market is long in the tooth.

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Emerging Market Banks: Promise Amid Skepticism

Brown Advisory

Emerging Market Banks: Promise Amid Skepticism achen Mon, 03/13/2017 - 10:37 For many investors, emerging markets are an enigma and represent a dichotomy between risk and reward. While these markets offer growth potential supported by secular tailwinds, these are also historically volatile markets and factors such as liquidity problems, political risks, weak regulations and currency instability compound investors’ fears of negative surprises.

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Emerging Market Banks: Promise Amid Skepticism

Brown Advisory

Emerging Market Banks: Promise Amid Skepticism. achen. Mon, 03/13/2017 - 10:37. For many investors, emerging markets are an enigma and represent a dichotomy between risk and reward. While these markets offer growth potential supported by secular tailwinds, these are also historically volatile markets and factors such as liquidity problems, political risks, weak regulations and currency instability compound investors’ fears of negative surprises.

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Your Accounting Expertise Will Only Get You So Far: What Really Matters

Speaker: Victor C. Barnes, CPA, MBA

In the climb from contributor to leader, the rules quietly change. If you’re aiming for the summit, the air gets thinner—and what got you here won’t be enough to get you to the top (a concept first popularized by Marshall Goldsmith in his book What Got You Here Won’t Get You There ). What made you successful early in your finance career—technical accuracy, sharp analysis, flawless execution—won’t be what carries you to the next level.

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Happy Anniversary!

The Irrelevant Investor

[link] During the Russian financial crisis of 1998, the NASDAQ fell 33% from July through October, but during the final 58 days of the year, it shook off those losses and went vertical, adding 50%! This move was just the appetizer of what would become one of the most memorable entrées in all of financial history, 1999. New highs were the theme of the year, here are some amazing statistics: The NASDAQ Composite experienced 70 new highs in 1999, or one every 3.5 days.

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Iceberg & Arugula

The Irrelevant Investor

Adam Smith once said “Show me a portfolio, I’ll tell you the generation.” It's safe to say if he peeked inside a brokerage account today, he wouldn't recognize which generation he was in. The story we keep hearing about is the shift from active to passive, and while it's true that dollars are leaving stock pickers for indexes, it's even more the case that they're going from high cost to low cost.

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What If Earnings Never Collapsed?

The Irrelevant Investor

The S&P 500 fell 57.69% from October 2007 to March 2009, but real earnings fell even more, from a high of $98.43 in June 2007 to a low of $8.01 in April 2009, a 91.86% decline. Some might think that this historical collapse is inflating the CAPE ratio. In other words, if real earnings didn't experience their deepest drawdown ever , stocks wouldn't appear so expensive.

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Can You Predict Bubbles?

The Irrelevant Investor

“For bubbles, I want a systematic way of identifying them. It’s a simple proposition. You have to be able to predict that there is some end to it. All the tests people have done trying to do that don’t work. Statistically, people have not come up with ways of identifying bubbles.” - Eugene F. Fama, June 2016 Bubbles are like snowflakes. No two are exactly alike, but they all share similar features; innovation, a run up in price, increased volatility, and expanding multiples, to name a few.

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How To Overcome Change Fatigue In Finance With Neuroscience-Backed Strategies

Speaker: Kim Beynon, CPA, CGMA, PMP

The most overlooked, yet most critical, element of transformation is preparing people for change. Automation and AI aren't just technical upgrades, they’re cultural shifts which can challenge identities. That’s why change management isn’t a side project—it’s the foundation. In finance, where precision and process rule, navigating change can feel especially disruptive.

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Global Leaders Investment Letter - Q1 2017

Brown Advisory

Global Leaders Investment Letter - Q1 2017 ajackson Fri, 03/31/2017 - 09:50 Global Leaders Strategy Investment Letter - Q1 2017 The team discuss the reversal of the market ‘rotation’ from the previous quarter and areas where they were able to take advantage of short-term weakness. They also discuss their views on behavioural biases: The Investing Ape (‘Homo Investus’).

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Global Leaders Investment Letter - Q1 2017

Brown Advisory

Global Leaders Investment Letter - Q1 2017. ajackson. Fri, 03/31/2017 - 09:50. Global Leaders Strategy Investment Letter - Q1 2017. The team discuss the reversal of the market ‘rotation’ from the previous quarter and areas where they were able to take advantage of short-term weakness. They also discuss their views on behavioural biases: The Investing Ape (‘Homo Investus’). . .

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How Long Will This Bull Market Last?

The Irrelevant Investor

You've probably already heard that this week marks the eighth anniversary of the bull market. Some would argue, myself included, that bull markets don't start at the depths of a bear, but whatever, let's just go with it for the purposes of moving past a dead and beaten horse. The United States has only experienced three bull markets before this current one, and with so many variables, it would be futile to look at such a small sample and say something like "The market typically peaks when valuat

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These are the Goods

The Irrelevant Investor

It'a funny, I thought my life would change when I had a baby, and it certainly has, but one thing I didn't count on is how much more time I would have. He sleeps, and he eats. That's it for now. So I've been either home or at the office and I've consumed more content in the past three weeks than over any other three week period in recent memory. I know that will change quickly, but in the meantime, I wanted to share some incredible stuff I read this week.

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2025 Industry Index: How Top Advisors Are Scaling Smarter (and Faster) This Year

Where are top advisors focusing in 2025? AcquireUp’s 2025 Industry Index reveals it all. Based on insights from 200+ financial professionals nationwide, discover why 74% say seminars and referrals deliver the best ROI, how automation is helping advisors scale faster, and why only 8% are tapping into niche marketing (a major growth opportunity!). Whether you're refining your client acquisition strategy or scaling your practice, this report gives you the real-world data, benchmarks, and action ste