Investment Notes

Island Light Investment Notes (August 2012)

It’s the first of September, and time to go back to school. Expect September and October market volatility to be higher than the last four months, as portfolio managers, brokers and analysts return from vacations.  Active managers, behind in their performance, will increase trading and portfolio risk in order to salvage year-end bonuses.  Brokers...

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Island Light Investment Notes (July 2012)

Its July, do you know where your investment advisor is?  If your advisor is like the rest of us, he or she tries to take time away from the office — on boats, lakes, beaches, traveling, on safari, or, in other words, probably not hovering over your portfolio allocations. For July 2012, remaining on the sidelines wasn’t a bad strategy.  The...

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Thoughts on Fixed Income Valuation

The allocation of fixed income investments in an asset allocation portfolio is an important and typically misunderstood investment process.  Because an intelligent fixed income allocation process is particularly relevant and important in today’s low interest rate environment, Island Light has developed a new relative factor weighting technique designed...

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Island Light Investment Notes (May 2012)

May is very rarely a great month for US equity investors.  This May was, unfortunately, not an exception to the old rule to “sell in May, buy in October”.  Don’t get us wrong; we are not advocating a tactical strategy that moves portfolios to cash for 6 months out of the year.  We are just saying that all of us would have been well served to...

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Island Light Investment Notes (April 2012)

In the natural world, the month of April is a time of renewal, anticipation and new life.  Animals and plants awaken, bloom and begin their warm weather plans. Investors, such as you and I, also seek renewal, growth and future prosperity.  But this April, our hopes for continued prosperity from the equity markets were dampened by showers, following...

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